GS Mains Model Question & Answer: What are the provisions of union government’s “Start-up India” plan and the challenges that lie in its implementation. Critically analyse. Comment

 GS Mains Model Question & Answer: What are the provisions of union government’s “Start-up India” plan and the challenges that lie in its implementation. Critically analyse. Comment

Q. What are the provisions of union government’s “Start-up India” plan and the challenges that lie in its implementation. Critically analyse. Comment

Model Answer:

What are the provisions of union government’s “Start-up India” plan and the challenges that lie in its implementation. Critically analyse.

Followings are the provisions:

1) Compliance regime based on self certification and no labour inspection for 3 years.

2) Exit for start ups within 90 days and tax exemptions to be provided on capital gains.

3) Fast track mechanism fodr start up patent applications,with 80% cost rebate.

4) Public procurement norms to be relaxed,allowing them competing with well established firm.

5) Sector -specific incubators,500 tinkering labs,pre-incubation and seed funds under Atal innovation Mission.

Positive aspects of it:

1) improving ease of doing business

2) intention to restrict governments unwanted interventions

3) Boost to economic growth

4) Initiative to improve business culture among new entrepreneurs’

Challenges follows:

1) No clarity why only companies which satisfies government's restrictive defination of start up -driven by technology,should have enabling enviroment.

2) Bureaucratic interventions:To eligible for schemes start up will have to show that innovation has improved significantly and their is no self certification

3) similarly tax exemptions will be for those only ,vetted by inter ministerial panel.

This plan is a good move with good intention but its success will depend on its realization of goals and hopefully government will ponder upon these loopholes and make necessary changes as deem fit.

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