(FREE) UPSC Current Affairs 2024 PDF

(GIST OF YOJANA) Startups-Reaching last mile

(APRIL-2023)

Entrepreneurship and innovation are essential drivers of economic growth and development. India, like many other countries, has recognised the importance of promoting entrepreneurship and innovation, and has taken several initiatives in this direction.
The Startup India initiative has three main components: simplification and handholding, funding support and incentives, and industry-academia partnership and incubation.
Under the simplification and handholding component, the government has simplified the process of starting a business in India by reducing the time and cost required to start a business. The government has also launched an online portal for startups.
The funding support and incentives component provides various incentives for startups, including tax benefits, patent registration, and funding support.
The industry-academia partnership and incubation component focuses on creating a network of incubators and accelerators across the country, which can provide mentoring, networking, and funding support to startups.

The Startup India initiative has had a significant impact on the Indian economy, particularly in terms of job creation and economic growth.
According to a report by the National Association of Software and Services Companies (NASSCOM), the Indian startup ecosystem is expected to create over 500,000 new jobs by 2025.
The initiative has also attracted significant foreign investment, with the total funding raised by Indian startups increasing from $3.9 billion in 2014 to $14.5 billion in 2019.
The initiative has also encouraged the growth of innovation and entrepreneurship in India.
According to the Global Innovation Index, India’s rank in innovation has improved from 81st in 2015 to 48th in 2021.
The initiative has also encouraged the growth of startups in various sectors, including technology, healthcare, and agriculture.

Raising capital is a major challenge for startups in India. Investors are often cautious and tend to invest in established companies rather than startups.
Startups in India struggle to attract and retain talent due to competition from established companies and the lack of skilled workers.
Indian startups must navigate a complex regulatory environment, which can be time-consuming and costly.
Poor infrastructure, such as inadequate transportation and power supply, can hinder the growth of startups in India.
Indian society has traditionally placed a strong emphasis on job security and stability, which can make it challenging for startups to attract employees and customers.
While India has a large population, the purchasing power of the majority of the population is low, limiting the potential market for many startups.
Many startups in India lack access to experienced mentors who can provide guidance and support.