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STARTUP SCHEMES IN INDIA

The term “startup” became internationally widespread during the dot-com bubble in the late 1990s, when a great number of Internet-based companies were founded. A startup company (startup or start-up) is an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing or offering an innovative product, process or service. According to U.S. Small Business Administration, a startup is a “business that is typically technology oriented and has high growth potential". The reference to "growth potential" may mean growth in revenues, number of employees, or both, or to the scaling up of a business to offer its goods or services to a wider or larger market.
Any new business can be considered as a startup if it commits a rare idea with a potential for rapid growth irrespective of technology oriented or otherwise.
Evolution of startups in India
Technology startups in India exist for more than three decades. Some of them were formed with US based Texas Instrument’s R&D center which started in the year in 1985.

Government Schemes for Startups in India
1.       Standup India

Ø  Purpose is to support entrepreneurship among women and SC & ST communities
Ø  Offers bank loans of between rupees 10 lakh (US$15,000) and rupees1 crore (US$150,000) for scheduled castes and scheduled tribes and women setting up new enterprises outside of the farm sector
Ø  Eligibility
·         SC/ST and/or Women entrepreneurs, above 18 years of age
·         Available for only green field project (Green field signifies , in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector
·         In-case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur
·         Borrower should not be in default to any bank/financial institution

2.       Startup India

Ø  Purpose is to promote bank financing for start-up ventures to boost entrepreneurship and encourage start -ups with jobs creation.
Ø  Offers –
1. Single Window Clearance even with the help of a mobile application
2. 10,000 crore fund of funds
3. 80% reduction in patent registration fee
4. Modified and more friendly Bankruptcy Code to ensure 90-day exit window
5. Freedom from mystifying inspections for 3 years
6. Freedom from Capital Gain Tax for 3 years
7. Freedom from tax in profits for 3 years
8. Eliminating red tape
9. Self-certification compliance
10.         Innovation hub under Atal Innovation Mission
11.         Starting with 5 lakh schools to target 10 lakh children for innovation programme
12.         New schemes to provide IPR protection to start-ups and new firms
13.         Encourage entrepreneurship
14.         Stand India across the world as a start-up hub

Ø  Eligibility

1. An entity (Private Limited Company or Registered Partnership Firm or Limited Liability Partnership) shall be considered a “Startup”
a)      Upto 5 years from the date of its incorporation/ registration, and
b)      If its turnover for any of the financial years has not exceeded INR 25 crore, and
c)       It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
The entity should not have been formed by splitting up or reconstruction of a business already in existence. A proprietorship or a public limited company is not eligible as startup. A one person company, being a private limited company is entitled to be recognized as a 'startup'

3.       Make in India

Ø  Purpose is to encourage multi-national, as well as national companies to manufacture their products in India.
Ø  Focus
1. Automobiles
2. Automobile Components
3. Aviation
4. Biotechnology
5. Chemicals
6. Construction
7. Defence manufacturing
8. Electrical Machinery
9. Electronic systems
10.         Food Processing
11.         Information Technology and Business process management
12.         Leather
13.         Media and Entertainment
14.         Mining
15.         Oil and Gas
16.         Pharmaceuticals
17.         Ports and Shipping
18.         Railways
19.         Renewable Energy
20.         Roads and Highways
21.         Space and astronomy
22.         Textiles and Garments
23.         Thermal Power
24.         Tourism and Hospitality
25.         Wellness

4.       Digital India

Ø  Purpose is to ensure that Government services are made available to citizens electronically by improving online infrastructure and by increasing Internet connectivity or by making the country digitally empowered in the field of technology.
Ø  Consists of three core components - The creation of digital infrastructure, Delivery of services digitally and Digital literacy
Ø  Pillars of Digital India
1. Broadband Highways
2. Universal Access to Mobile Connectivity
3. Public Internet Access Programme
4. e-Governance – Reforming Government through Technology
5. eKranti - Electronic delivery of services
6. Information for All
7. Electronics Manufacturing
8. Digital or IT for Jobs
9. Early Harvest Programmes

Ø  Services
1. Digital Locker
2. e-education
3. e-health
4. e-sign
5. national scholarship portal
6. Botnet cleaning centers

5.       Skill India

Ø  Purpose is to train over 40 crore (400 million) people in India in different skills by 2022.
Ø  Schemes
1. National Skill Development Mission
2. National Policy for Skill Development and Entrepreneurship, 2015
3. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
4. Skill Loan scheme

5. Rural India Skill 

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