Startup India, a flagship initiative of the government, intends to build a culture of inclusion, innovation and entrepreneurship. This will not only drive economic growth but also generate employment opportunities for the country.
The initiative will help startups in Maharashtra grow through innovation and design, and it will benefit the state by spreading the startup movement beyond existing cities and into smaller towns and rural areas.
Startups often face a challenging competitive environment, both in traditional and online markets. It’s essential for startups to have controlled expectations and focus on sustainability, as success can bring unrealistic expectations. Cybersecurity is important for startups, especially those operating online, to protect against attacks and data breaches. Effectively promoting and marketing the startup’s products or services can be a challenge, as can diversifying offerings to stay competitive and relevant in the market.
Government Initiatives To Help Startups Get An Edge
- The government of India plans to hold annual startup festivals at both the national and international levels as part of the ‘Make in India’ initiative. These festivals will provide a platform for startups to showcase their ideas, work with potential investors and mentors, and connect with other startups.
- The Atal Innovation Mission (AIM) is a platform established by the Indian government to promote entrepreneurship and innovation through the Self-Employment and Talent Utilization (SETU) programme. The AIM also aims to support State Innovation Councils in organising workshops and conferences and to launch Grand Innovation Challenge Awards to find low-cost solutions to pressing problems in India.
The Startup India Action Plan: Facilitating Innovation and Growth
The broad scope of Startup India’s programmes is outlined in an ‘Action Plan’. This plan is divided into three main areas: simplification and handholding, funding support and incentives, and industry-academia partnership and incubation.
The Startup India Action Plan includes legal support and fast-tracking of patent examination at lower costs, relaxed norms of public procurement for startups, faster exits for startups, funding support through a Fund of Funds with a corpus of INR 10,000 Cr, a Credit Guarantee Fund for startups and tax exemptions on capital gains to promote investments in startups.
Maharashtra has earned the status of a startup hub because of the presence of several major cities with strong infrastructure and a supportive business environment. Mumbai, the capital city of Maharashtra, is home to the Bombay Stock Exchange (BSE) and is a major financial centre. Pune is a hub for the IT and automobile industries, while Nashik is known for its wine industry and pharmaceutical manufacturing. The presence of these major cities with their respective industry strengths creates opportunities for startups in those sectors.
Additionally, the government of Maharashtra has taken steps to promote the growth of startups in the state. It has established the Maharashtra State Innovation Council, which aims to create a conducive ecosystem for innovation and entrepreneurship and has implemented various initiatives to support startups, such as providing access to funding, incubation facilities, and mentorship.
Accelerating Startup Success: The Benefits Of The Startup India Action Plan
- Simple registration process through a mobile app or website
- Reduced cost for intellectual property services, including an 80% reduction in patent filing fees
- Access to government-funded venture capital and guarantees for lenders
- Tax holiday for three years with certification from Inter-Ministerial Board
- Ability to apply for government tenders without prior experience/turnover requirements
- Seven new research parks for R&D startups
- Simplified compliance with labour and environmental laws
- Tax exemption for capital gains invested in government venture funds
- Option to choose investors among venture capital firms
- Easy exit process with a 90-day winding up the application period
- Networking opportunities at annual startup festivals nationally and internationally
Bottom Line
The Startup India initiative is a valuable resource for entrepreneurs looking to start and grow their businesses in India, particularly in the state of Maharashtra.
The Action Plan provides a range of benefits and support measures to help startups navigate the challenges of starting and growing a business, including simplification and handholding, funding support and incentives, industry-academia partnership and incubation. These measures will help to support the growth and success of startups in Maharashtra, leading to increased economic development and job creation in the state.