Last Saturday night witnessed an action packed speech, it almost had every Indian Entrepreneur glued himself/herself to the live telecast of PM Narendra Modi on his Startup Action Plan . Amidst the loud cheers and thunderous applause, the PM not only captured the hearts of young leaders at Vigyan Bhavan in New Delhi but also clarified many a doubts of growing leaders who were sitting at home. One such scenario where a budding Indian Entrepreneur from Chennai gets his mind in sync with the PM’s speech is given below
PM Modi: This startup movement is not linked to money or name and fame. It is about finding solutions to the problems of common people
Indian Entrepreneur: So what, it is obvious that you will encourage only billion dollar ideas?
Bang came the reply from PM…
PM Modi: Startups don’t have to be billion dollar ventures. Even if it employs five people, it is contributing to the Indian economy
So the young man thinks, “Seems like this PM is genuinely interested in encouraging startups in India”. He ponders a little and comes up with another question which is presently apt for the current scenario in India.
Indian Entrepreneur: So what, this is a License Raj. By the time we come to know what the norms to follow are, we will lose interest in our idea and thereby making it a waste of our time.
PM Modi: A mobile app will be launched on April 1 2016, through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations. There will be faster patent registration and protection for Intellectual Property rights. We are also introducing self-certification compliance by startups.
Now the young man gets a little more curious and poses the Prime Minister on TV with another question.
Indian Entrepreneur: Alright, accepting that norms will be eased going forward there are still some issues. Currently I am taking a huge risk by getting myself involved in a startup, this might even put my career in jeopardy. What if I fail? Is there an easy way out?
PM Modi: To make it easier for startups to exit, provision for fast-tracking closure of businesses have been included in ‘The insolvency and Bankruptcy Bill 2015’. Startups with simple debt structures may be wound up within a period of 90 days from making of an application for winding up on a fast-track basis. We have introduced the bankruptcy and insolvency Bill in 2015. The rest of the problem, you know …
The young man smirks a little thinking about the mess Congress has been creating in the Rajya Sabha for the past few months. Coming back to the speech, he then thinks of something very basic and probably a primary issue which the PM had forgotten.
Indian Entrepreneur: Okay that is good news. But as far as funding is concerned we young entrepreneurs are neither TATAs/Birlas, nor do we have a love story where someone like Sudha Murthy magically appears to fund N R Narayanamurthy for Infosys.
PM Modi: A Fund of Funds will be created with an initial corpus of Rs 2,500 crore and later to Rs 10,000 crores. There will be credit guarantee fund for startups.
After hearing the reply from the PM, he seriously contemplated if there was a secret mike present somewhere in his living room in Chennai. Now this young man has the PM’s undivided attention even though he was speaking out of the television, but there are still some certain doubts looming over his mind.
Indian Entrepreneur: Being funded by the Government is great but how can we expect to be fully operational from the moment go? We are start-ups and we need to crawl first before we pick up the pace and run in league with the big guys. How can we cover the operational expenses like tax?
This reply was not only cheered in Vigyan Bhavan at Delhi but probably was received with equal excitement from all corners of the country.
PM Modi: Exemptions shall be given in case capital gains are invested in the fund of funds recognized by the government. In addition, existing capital gain tax exemption for investment in newly formed MSMEs by individuals shall be extended to all startups. To promote growth of startups, profit of startups, set up after April 1, 2016, shall be exempted from income-tax for a period of three years.
On completion of the PM’s speech, this young man walks straight back into his bedroom, retrieves one of his old APP project and continues to pick up the pieces from where he left it off. This is how the PM had stuck a chord with many an inventors across the Nation, rekindling their hopes and aspirations. It was not only those who wanted to taste success were inspired by the PM’s speech, but those who have already bathed in success are equally excited by the presence of such a positive environment in India. Few such extracts are present below
“I have seen politicians come and give speeches, make promises, do shopping and go back, But I was shocked at the speed of this government” – BJ Arun, CEO of July Systems
“The government has acted like a disruptive start-up. The policies around cleaning the license raj will be a huge booster for the start-up community” – Radhika Aggarwal, co-founder and CEO of Shopclues
“We were all delighted and pleased that the Prime Minister understands that startups are going to transform India in the next 10 years” – TV Mohandas Pai, Head of Aarin Capital Partners
Taking a leaf out of the PM’s speeches, “India as a Nation has a million problems but it also has a billion minds but right now all it requires is minimum government but maximum governance in order to implement the Start-Up Action plan. Success of implementation of this action plan is what which holds the key to India’s start-up growth story.”