START-UP not able to accomplish that. “Start-up

                   START-UP INDIA ACTION PLAN – SUCCESS
OR FAILURE          

ABSTRACT
: Due to globalization and advancement in generation
competition is growing day by day that’s why self- employment attention amongst
youth is growing at rapid pace. Furthermore India is 2nd most
populous country and due to high population pressure, it is need of hour to
expand entrepreneurial skill amongst youth in India. So government rolled up
start-up India Plan to assist young inspiring entrepreneur .The plan pursuits
to research the demanding situations and Opportunities within the manner of start-up
in India. Explore the major problems faced via start-up in India, and discuss
the diverse opportunities of start-ups in India.

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INTRODUCTION

“Five percent of the people Think.

Ten percent of the people think they think.

And the other Eighty Five percent would rather die than
think.”

The value of an idea lies in the using of it”, are
the famous lines of Sir Thomas Alva Edison who was not only a famous Inventor
but also a successful entrepreneur of his time.

The economic system of
any country depends on its countrymen. Larger the range of employed or running
human beings, better be the economic system. The Indian authorities found out
that Indian people have the capacity to work hard in challenging conditions,
all they want is, a promising start-up. Many human beings dream of commencing
their own business, however because of economic or other comparable issues are
not able to accomplish that. “Start-up India” is a innovative scheme that has
been started out to help the people who wish to begin their own commercial
enterprise. These people have ideas and functionality, so the government will
give them support to ensure they are able to enforce their ideas and grow.
Success of this scheme will in the end make India, a higher financial system
and a sturdy nation. Start-Up India Scheme –From Job Seekers to Job Creators.

India has come a
protracted way in modernizing its economic system, reducing poverty and
enhancing residing requirements for a big phase of its population. It is the
second most maximum populous country in the world. With considered one of the
biggest and youngest populations within the international, it desires to create
millions of employment opportunities with respectable work surroundings and
infrastructure within the near destiny to make sure Quality dwelling situations
for the widespread majority of its residents.

Our Country is
regularly cited for example of an economic system that is modernizing by way of
leaping without delay into offerings without passing through  manufacturing. Despite our  country notably strong document in phrases of
economic increase over the past decade, its middle class population stays small
and getting a activity isn’t any assure of escaping poverty. Given the Indian
economy’s huge size and giant worldwide linkages, its growth slowdown is a
source of significant situation now not simply locally, but around the globe.

Start-up India is a
flagship initiative of the federal government of India, meant to construct a
powerful ecosystem for nurturing innovation and Start-ups within the country in
an effort to drive sustainable fiscal growth and generate large scale
employment possibilities. The government by means of this initiative to empower
Start-ups to develop via innovation and design. The purpose behind this
initiative is to bring out the Entrepreneurship skills among the youths of
India who are highly talented and with their enthusiasm , different approach
can bring about a vast change in the Global aspect.

Start-Up India Is a
revolutionary scheme since the independence that has been started to help the
common people who wish to start their own business ,this scheme has been one of
its kind where  people having ideas &
capabilities to establish their Business will be supported by the govt. of
India to insure that they implement their ideas and grow up and support the
economy of our nation . Success of this scheme will eventually thrive to make
India a better economy and a strong Nation .With the advantage of demographic
dividend India is one of the most youthful nation with 89% literacy rate among
the youths, the scheme has been coined to encourage the youth of our nation to move
out of the box from working Nine to Five for someone to rather Inventing their
own clock hours.

SATRTUP
INDIA ACTION PLAN :

 The Action Plan is an initiative of the
Government of India to build a strong eco-system for nurturing innovation in
order to accelerate economic growth and generate employment opportunities. For
the first time the government differentiated a “Start-up” from a regular
business  and therefore “Start-up”
has been defined to mean an entity incorporated or registered in India, with an
annual turnover not exceeding Rs.25 crore in any preceding financial year, and
working towards innovation, development of new products, or services driven by
technology or intellectual property.

 

The
Action Plan is divided across the following areas:
(A) SIMPLIFICATION AND HOLDINGS
 
-Compliance Regime based on Self-Certification: formalities
requiring compliance with various labour and environment laws are time

consuming and difficult in nature. It has been observed that, young
firms are unaware of complicated legal formalities and can be subjected to intrusive action by regulatory agencies. In order to make
setup for Start-ups friendly and agile, simplifications and  are required in the regulatory regime.

Start-ups
shall be allowed to self-certify compliance (through the Start-up mobile app)
with 9 labour and environment laws. In case of the labour laws, no inspections
will be conducted for a period of 3 years. Start-up may be inspected on receipt
of credible and verifiable complaint of violation, filed in writing and
approved by at least one level senior to the inspecting officer.

In case
of environment laws, Start-up which fall under the ‘white category’ (as defined
by the Central Pollution Control Board (CPCB)) would be able to self-certify
compliance and only random checks would be carried out in such cases .Thereby
reducing the regulatory burden and allowing them to focus on their core
business and keep the compliance cost law.

 

-Start-up India Hub: To create a single factor of
contact for the whole Start-up ecosystem and enable competencies alternate

and funding
access .All young Indians leaders who have the courage to enter an environment
of risk and competency, the Start-up India Hub will act  as a mentor, guide and will assist the
entrepreneurs to stand out against the odd times.

 -Rolling out of Mobile
App and Portal: To serve as the single platform for Start-up for
interacting with Government and Regulatory Institutions for all business needs
and information exchange among various stakeholders.
 

– Legal Support and
Fast-tracking Patent Examination at Lower Costs: To promote awareness and
adoption of IPRs by start-up and facilitate them in protecting and
commercializing the IPRs by providing access to high-quality Intellectual
Property services and resources, including fast-track examination of patent
applications and rebate in fees.
 
– Relaxed Norms of Public Procurement for Start-up:
To provide an equal platform to Start-up (in the manufacturing sector)
vis-à-vis the experienced entrepreneurs/ companies in public procurement.
 
– Faster Exit for Start-ups: To make it
easier for Start-up to wind up operations.
 

(B)Funding
Support and Incentives- Providing Funding Support through a Fund of
Funds with a Corpus of INR 10,000 crore: To provide funding support for
development and growth of innovation-driven enterprises.
 
– Credit Guarantee Fund for Start-ups: To
catalyze entrepreneurship by providing credit to innovators across all sections
of society.
 
– Tax Exemption on Capital Gains: To promote
investments into Start-ups by mobilizing the capital gains arising from the
sale of capital assets.
 
– Tax Exemption to Start-up for 3 years: To
promote the growth of Start-ups and address working capital requirements.
 
– Tax Exemption on Investments above Fair
Market Value: To encourage seed-capital
investment in Start-up.
 

(C)Industry-Academia
Partnership and Incubation
 
– Organizing Start-up Fests for Showcasing
Innovation and Providing a Collaboration Platform: To galvanize the Start-up
ecosystem and to
provide national and international visibility to it.
 
– Launch of Atal Innovation Mission (AIM) with
Self-Employment and Talent Utilization (SETU) Program: To serve as a
platform for promotion of world-class
Innovation Hubs, Grand Challenges, Start-up businesses and other
self-employment activities,
particularly in technology-driven areas.
 
– Harnessing Private Sector Expertise for
Incubator Setup: To ensure professional
management of Government sponsored/funded incubators, Government will create a
policy and framework for setting- up of incubators across the country in a public-private
partnership.
 
– Building Innovation Centres at National Institutes: To propel successful innovation through
augmentation of incubation and R&D efforts
 
– Setting up of 7 New Research Parks Modeled
on the Research Park Setup at IIT Madras: To propel successful innovation
through incubation and joint R&D efforts between academia and industry
 
– Promoting Start-ups in the Biotechnology
Sector: To foster and facilitate bio entrepreneurship.
 
– Launching of Innovation Focused Programs for
Students: To foster a culture of innovation in the field of Science and
Technology amongst students.
 
– Annual Incubator Grand Challenge: To
support the creation of successful world class incubators in India.
 

 

 

PROS
OF START-UP INDIA ACTION PLAN

 
1)  Incubation facility that will help start-up grow.

 
2)  Easy process for registration :The process for registering
for a new start-up has been digitalised and the formalities for clearance has
also been shifted for further period until the stability of the start-up
thereby providing ample time to establish and easy way to enter themselves.

 

 
3)  Tax exemptions :Innovation is the essence of start-up .The
Govt. has provided for tax exemptions for initial 3 years to the start-up who
have shown capital gains in their initial years because of which providing
incentives is really necessary as grabbing investors in the initial days of start-up
is a herculean task.

 
4)  Funds of fund program :One of the biggest challenges for start-up
are the access to finances ,the young start-up often fail to attract the
investors because of their highly risk oriented innovative ideas.In order to provide funding support to Start-up, Government has
set up a fund with an initial corpus of INR 2,500 crore and a total corpus of
INR 10,000 crore over a period 4 years (i.e. INR 2,500 crore per
year) . The Fund will be in the nature of Fund of
Funds, which means that it will not invest directly into start-up, but shall
participate in the capital of SEBI registered Venture Funds.

 
5)  Exit plan for failed start-up :Start-up are innovative in
nature and failure because of any reasons should not hamper the entrepreneur to
experiment with their ideas, without

facing a
complicated and long-drawn exit process where their capital remain stuck.

The Insolvency and
Bankruptcy Bill 2015 has provisions for the fast track closure of businesses. In
terms of the IBB, Start-up with simple debt structures or those meeting such
criteria as may be specified may be wound up within a period of 90 days from
making of an application for winding up on a fast track basis.

 
6)  Start-up fest for motivation: Various fest have been organised
to exchange the ideas and viewpoints of young entrepreneurs with International and
national business tycoons, so as to help them to motivate and give
understanding of field operations and exchange innovative ideas.

 

CONS
OF START-UP INDIA ACTION PLAN

 

With home to 4700 start-up India is the
3 largest start-up builder nation, but it lacks successful innovation. Notwithstanding
the truth that marketplace valuation of Indian start-up has grown significantly
over the last 4 years, a recent observe, “Entrepreneurial India,” by way of the
IBM Institute for Business Value and Oxford Economics observed that 90% of
Indian start-up fail in the first five years. And the most not unusual motive
for failure is loss of innovation — seventy seven% of challenge capitalists
surveyed consider that Indian start-up . It’s well known that
most Indian start-up are prone to emulate successful global ideas, by and large
fine-tuning an existing model to serve local needs. There’s Ola for Uber, Gaana
for Spotify, OYO Rooms for Airbnb and Flipkart for Amazon.

 

Since 2015, as many as 1,503 start-ups
have closed down in India. And the important reason is because of the
replication of Western enterprise fashions, and no longer lack of subsequent
funding from the traders. The highest variety of screw ups were in logistics,
e-commerce and food.

 

KEY
REASONS FOR FAILURE:

 

Often in the beginning the start-up do
not have accurate insights on the right addressable market that they have to be
targeting or have a move-to market strategy in vicinity. They additionally
sometimes turn out to be focusing too much at the idea and not the end product
& surroundings required, focusing much less on how customers and traders
will view their concept as a product. Start-up to recognize on how their
business model will generate money, as no longer each begin-up can manage to
pay for to bleed for long.

 

While there isn’t lots data available on
the quantity of hat fail each 12 months, professionals agree with the failure
price is high. Experts trust a regulatory method that encourages
entrepreneurship may want to play a role in developing a conducive environment.
Initiatives on permitting faster processing such as self-certifications, cell
app and fast tracking patent application could assist Start up focus more on
their commercial enterprise and less on administrative requirements.

 

 Further,
the coverage encourages entrepreneurs to apply for public procurement opening
up a brand new feasible revenue flow for plenty begin-ups.Experts say winding
down operations is painful and entails complex techniques like taking No Objection
certificates from several groups.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONCLUSION:

Start up India is a commendable effort
from Govt. to a thought of giving start-up as a specific separate body .The
Govt. recognised the potential of the youth and came out with a visionary
thought of fostering start up culture and entrepreneurship in India.

Along with the various other schemes,
the start up India aims to achieve the goal of securing Financial security,
Quality of life, Innovation ,Self employment ,Mass job creation ,Unity and
harmony.

With the ATAL INNOVATION MISSION, the
govt. endeavours to promote self-employment, Innovation hubs, world class
research centres, in a nation of 1.32 billion. It aims to generate curiosity,
creativity and imagination from the very beginning to gain hands on scalable
and sustainable enterprises.

With the help of Digital India the
initiative helps the young entrepreneurs to provide digital and financial space
work to improve citizen access to technology and helping to expand the market
from one corner of the world. It aims to bring equity and efficiency by helping
to avail the services in all the India language thereby providing the solution
the immense diversity of our nation.

PRADHAN MANTRI KAUSHAL VIKAS YOJNA and
NATIONAL SKILL DEVELOPMENT MISSION aim to provide the basic industry relevant
skills to enhance opportunities for livelihood thereby providing skilled
manforce for the visionary concept and ideas of the entrepreneurs.

MAKE IN INDIA is a modern Swadeshi
movement encouraging companies all around the world to manufacture their
products in India. It aims to transform India into a global asset of designing
new technology and a hub of manufacturing country. It has the potential to
procure heavy investment, foster innovation, develop skill, protect
Intellectual property and build best in class manufacturing goods.

 

 

Indian start-up ecosystem has been
maturing with lots of virtue, to be more robust and valuable. Though marketers
are passing through a section blended with each blessings and impedances from
the outside surroundings, they may be generating unrivalled products and
services for the market. This has been discovered with the aid of the finances
who could be keen to price range greater start-up in 2018. Continuing this
manner for another three-four years might virtually lead the Indian start-up
environment to the apex of global innovations on all fronts. Start-up India
has supplied sturdy encouragement and respectability to first generation
marketers other than smoothening approaches. If the guarantees made are
fulfilled timely, there may be absolute confidence that India might be the
worldwide hotspot for job creators and hassle solvers.

Measures such as the exemption from
capital profits tax whilst making an investment one’s own wealth in a start-up
will make sure that many jobs are created in every degree and human useful
resource and talent acquisition will now not be a bottleneck. Apart from this,
no inspection for the primary 3 years and self-certification for statutory
compliance will permit start-ups to lease in bulk and scale up their
operations, developing a cascading effect as a ways as activity creation is
worried. The actual test of the government will now lie in how the policies are
unfurled within the destiny to cut down crimson tape and ‘escape the License
Raj’.

“The Start-up India programme is a
great starting. The intentions have been made clear. With many states arising
with their own start-up guidelines and the national momentum created, the
symptoms are welcoming. Of path, there may be constantly scope for development.
Even today, no longer many problems had been resolved along with ESOPs,
taxation and so on. I agree with a lot of those changes will get pondered at
some point of the Union Budget. Yes, three hundred and sixty five days have
long gone through, however we are able to see lot of momentum by way of this
month cease.”

 

 Start-up
India was a “affordable” show in its first 12 months but loads of
factors need to be modified, and that is not clean to do. Some matters need to
be carried out, it’s now not a finished tale, extra things should show up Start-up
India making incremental progress. We can anticipate the government, non-public
price range, incubators and industry veterans to collaborate and make this
initiative truly stand up, which may additionally take any other 2-3
years,” she says.

 

To conclude, the start-up India has got
a respectable start with some challenges at the execution and implementation
the front. But 2018 should show to be a year while things fall into location,
and the fledgling industry gets some guide from these nicely-intentioned
measures. . Start-up India is already a success. In a country of 1.32 billion
people pushing a new revolution towards technological innovation is a great
leap.