Startup India- A New Vision of Economic Development

Applied Economics

Honorable Prime Minister Dr. Narendra Modi announced on 15th August 2015 "Start-up India, Stand up India" to promote Bank Financing for startups and offer incentives to boost entrepreneurship and job creation. Addressing the Nation on the 69th Independence Day, he said, "We are looking at systems for enabling start-ups. We want to enable start-ups to make India No. 1 in this field…. Start-up India; Stand up India." The action plan for this initiative is based on the following three pillars: 1. Simplification and Handholding. 2. Funding Support and Incentives. 3. Industry-Academia Partnership and Incubation. An additional area of focus 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). A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago and has an annual turnover of fewer than 100 crores. Under this initiative, the government has already launched the I-MADE program, to help Indian entrepreneurs build 10 lakh (1 million) mobile app start-ups, and the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds. The initial capital of 20,000 crores has been allocated for this scheme.

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