Press Information Bureau

Government of India

Ministry of Commerce & Industry

14-March-2016 17:33 IST

An Action Plan has been prepared for 22 sectors under ‘Make in India’ initiative to promote new entrepreneurs in the country. An Investor Facilitation Cell has  been  created in Invest India to assist and handhold investors.  Further, a Startup Action Plan has been released by the Government to create a conducive environment for startups in India which includes:-

a.      Simplification and Handholding

·         Simple Compliance Regime for startups  based on Self-certification

·         Launch of Mobile app and Portal for compliance and information exchange

·         Startup India Hub to handhold startups during various phases of their development

·         Legal support  and fast-tracking patent examination at reduced costs

·         Relaxed norms of public procurement for startups

·         Faster exit for startups

b.      Funding support and Incentives

·         Providing funding support through a Fund of Funds with a corpus of ₹ 10,000 crore

·         Credit guarantee fund for startups

·         Tax exemption on capital gains invested in Fund of Funds

·         Tax exemption to startups for 3 years

c.           Industry-Academia Partnership and Incubation

·         Organizing Startup Fests to showcase innovations and providing  collaboration platforms

·         Launch of Atal Innovation Mission (AIM) with Self –Employment and Talent Utilization (SETU) Program of NITI Aayog

·         Harnessing private sector expertise for setting up incubators

·         Setting up of 7 new research parks modeled on the Research Park at IIT Madras

·         Launching of innovation focused programs for students.

·         Annual Incubator Grand Challenge to promote good practices among incubators.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

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RC/nb

Startup support framework: simplified compliance, financing mechanisms, tax incentives and ecosystem measures to enable new entrepreneurs. Framework to promote new entrepreneurs establishes a Startup Action Plan focusing on regulatory simplification, financial support, and ecosystem building. Regulatory measures include a Simple Compliance Regime based on self certification, a mobile compliance portal, a Startup India Hub for handholding, legal support with fast track patent examination, relaxed public procurement norms, and faster exit procedures. Financial measures comprise a Fund of Funds for startup financing, a credit guarantee scheme, and tax incentives including startup tax exemption and capital gains relief for investments into the Fund of Funds. Ecosystem actions include industry-academia partnerships, incubator support, research parks, and student innovation programs.