Startup India Initiative and its Success:
- The action plan for this initiative is focusing on three areas:
Simplification and Handholding.
Funding Support and Incentives.
Industry-Academia Partnership and Incubation.
- An additional area relating to this initiative is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances.
- It was organized by the Department for promotion of industry and internal trade (DPI&IT).
Success of the scheme:
- Minister for Commerce and Industry has informed the Lok Sabha that the entrepreneurial portal had more than 65,000 startups registered.
- Of which, 40 attained the ‘unicorn’ status in the last twelve months, bringing the total as of date to 90.
- India now ranks third among global startup eco-systems.
- The networking, training and mentoring facilities provided by Startup India alongside entrepreneurship outreach campaigns in tier-2 and tier-3 cities, helped address regional entrepreneurial disparities in India.
- Entrepreneurship continues to be “highly concentrated” in three megacities, namely, Mumbai, Bengaluru and Delhi NCR.
- Such concentration can lead to increased economic inequality and hinder emergence of entrepreneurs from industries other than those belonging to the clusters.
- The Startup India Action Plan document has no mention of the words ‘caste’, ‘tribe’, ‘marginalised’, ‘indigenous’ or ‘social group’.
- Additionally, the policy’s reliance on technology does not take into consideration India’s digital divide, especially with respect to urban and rural areas.
- There is an under-representation of women and marginalized caste groups in the national startup ecosystem.
- There is a need for policies and progressive strategies from governments to encourage startups and provide access and assistance in key areas including tax clarity, incubation, affordability and licensing.
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