Change begins

For entrepreneurs, investors and anyone interested in putting their finger in the start-up pie, the Startup India movement launched by the Modi government seems a breath of fresh air in a country where the license raj was still a powerful one.

The government has put forth a slew of initiatives that are aimed in making a startup grow far easier than it did before. Some of the key points of the Startup India movement are the three year income tax holiday and a holiday for capital gains invested in SEBI venture funds. Registration will become much easier and there is not just an 80 percent rebate in the registration of patents but the process itself will take less time due to a single window system. The requirements to bid for government contracts has been lowered to make it easier for startups to apply. Another important aspect of the movement is the self-certification scheme, where startups can self-certify compliance on nine labour and environmental laws, with the government promising no inspections for the first three years.

All this will make it very easier for startups to function in India, where an overpopulated economy needs to look to different avenues for growth. Finance Minister Arun Jaitley has rightly stated that the government has now taken the role of a facilitator, given that the schemes allow little room for any unnecessary authoritative interference.

There is still work to be done to bring back companies that have resorted to re-domiciling, moving to places like Singapore where the rules were more conducive to growth in the past. With these schemes and if the country can attract those companies to move back here, India can move up from third place in the global market for startups.

Over in Goa however, there is a lot that needs to be done to make the atmosphere startup friendly. No doubt, the State offers a lot of great advantages for anyone to start a business, but scaling up further is where the problem lies. Infrastructure in this regard is far from ideal and there are issues like internet connectivity and power supply issues that will certainly make matters difficult for a startup to scale up. Bringing in part of the workforce from elsewhere too will put a strain on the land.

Goa needs to work towards making the State startup friendly; it needs to handhold and mentor companies, as well as give women a friendly push into these sectors. Here, and across India, there are certain sectors that could use a fresh injection of finance and manpower. Energy, healthcare, agriculture and financial inclusion (The delivery of financial services at affordable prices to the low income and disadvantaged sections of society) are areas where startups can thrive. But for that to happen, states like Goa need to create incubation centres and also put other systems in place that can foster a better ecosystem for growth.

The government of India’s eagerness to fix issues and make the country startup friendly needs to be applauded. The forthcoming budget will definitely have policies that are tailormade to encourage startups and allow companies to function better, without too much of governmental interference. This is just a start, but it’s a really good one at that.