The Department for Promotion of Industry and Internal Trade (DPIIT) today announced a slew of measures to enable startups’ overall growth through its ‘Startup India Vision 2024’ document.
The Indian startup ecosystem is in for a major boost by the government as the Department for Promotion of Industry and Internal Trade (DPIIT) today announced a slew of measures to enable startups’ overall growth through its ‘Startup India Vision 2024’ document. The department is looking to facilitate the launch of 50,000 new startups by 2024 and generate 20 lakh direct and indirect jobs, PTI reported citing an official.
Among the other measures proposed by DPIIT included launching 500 new incubators and accelerators, 100 innovation zones in urban local bodies and making seven research parks operational to support innovative startups.
In terms of providing financial support to startups, the department proposed allocating entire corpus of Rs 10,000 crore Fund of Funds along with enhancing CSR funding to incubators. Also, establishing an India Startup Fund worth Rs 1,000 crore for technology startups and another Rs 1,000 crore in seed funding to startups was included in the document. The document also highlighted the need for setting up of single window system by banks for disbursing loans to startups
“It (document) will be presented to the new government for their consideration,” the official said.
With respect to reducing compliance burden further, the document proposed to exempt alternative investment funds’ all investments from angel tax, cut rates for the Goods and Services tax, launch regulatory sandbox for development of fintech products, tax exemption for ESOPs, and tax incentives for startup investments.
So far, 17,989 startups have been recognised by the government Startup India program launched by Prime Minister Narendra Modi in January 2016. 182 startups have received funding under the program.
According to a Nasscom report on the Indian startup ecosystem last year, there are close to 8,000 technology startups in India after the US and China.
However, according to the budget documents, the government in this year’s budget reduced the allocated amount for Startup India to Rs 25 crore from the revised estimate of Rs 28 crore in FY19, PTI reported.
The government, however, had increased allocation for Make in India programme to Rs 473.3 crore for 2019-20 from the revised estimate of Rs 149 crore in 2018-19.