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
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
- 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
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
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
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
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.