GS Mains Model Question & Answer: Highlight the components of Startup India Campaign 2016

GS Mains Model Question & Answer: Highlight the components of Startup India Campaign 2016

Q1. Highlight the components of Startup India Campaign 2016  (General Studies Mains Paper III- Economy : Development and Employment) (12.5 Marks)

Model Answer :

The Indian government realized that Indian people have the potential to work hardly, all they need is, a promising start up. Many people dream of starting up their own business, but due to financial or other similar issues are unable to do so.


Indian government in the leadership of Narendra Modi has decided to offer a gift as a nation wise program- “Start Up India” (Stand up India). PM Narendra Modi said that we are trying to make the young job creators rather than job seekers. He also said that one’s mindset should not be towards earning money in the initial phase, it should be rather on grabbing and using the opportunities.

Startup India is a flagship initiative of the Government of India, the first of its kind dialogue between India’s startup community and the government to build a strong ecosystem for nurturing innovation and Startups in the country.

PM Modi announced a self-certification scheme in respect of nine labour and environment laws and said there will be no inspection during the first three years of launch of the venture. Addressing the first conference of start-up entrepreneurs, Modi announced an action plan to boost such ventures which are seen as key to employment generation and wealth creation.

Start Up India (Stand Up India) Scheme – Action Plan

  • Single Window Clearance even with the help of a mobile application and dedicated web portal
  • 80% reduction in patent registration fee
  • Modified and more friendly Bankruptcy Code to ensure 90-day exit window
  • No inspection during the first 3 years
  • Freedom from Capital Gain Tax for 3 years
  • Freedom from Income tax in profits for 3 years
  • Eliminating red tape & Self-certification compliance
  • Innovation hub under Atal Innovation Mission
  • Starting with 5 lakh schools to target 10 lakh children for innovation programme
  • New schemes to provide IPR protection to start-ups and new firms
  • Encouragement of entrepreneurship.
  • Stand India across the world as a start-up hub

Role of Central Government, State Government, Educational Institutions and Corporates

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to an ecosystem that is conducive for the growth of start-up businesses.

The Ministry of Human Resource Development and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs.

Kerala is well known for the government’s startup policy, "Kerala IT Mission", which focus on fetching ₹50 billion(US$740 million) in investments for the State’s startup ecosystem.

Telangana has launched the largest incubation center in India as "T-Hub".

Andhra Pradesh has allocated a 17,000-sq.ft. Technological Research and Innovation Park as a Research and Development laboratory. It has also created a fund called "Initial Innovation Fund" of ₹100 crore (US$15 million) for entrepreneurs.

The government of Madhya Pradesh has collaborated with the Small Industries Development Bank of India (SIDBI) to create a fund of ₹200 crore(US$30 million).

Rajasthan has also launched "Start-up Oasis" scheme.

The National Institute of Technology, Silchar is one of the institutions of the country to have joined the program.

IIT Madras is also linked with this campaign. The institution has been successfully managing seven research parks that has incubated many start-ups.

SoftBank, which is headquarterd in Japan, has invested US$2 billion into Indian startups. The Japanese firm had pledged the total investments at US$10 billion.

Google declared to launch a startup, based on the highest votes in which the top three startups will be allowed to join the next Google Launchpad Week, and the final winner could win an amount of US$100,000 in Google cloud credits.

Oracle on 12 February 2016 announced to set up nine incubation centres in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vijayawada.


Startups campaign is facing crticism like corruption and red tapism, and the fear of big corporates that might oppose or destroy the spirit of start-ups which challenge them.


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