The Centre is committed toward providing an environment for start-ups to thrive in as India is at the forefront of an entrepreneurial revolution, Commerce and Industry Minister Nirmala Sitharaman said.
Speaking at the ‘Start-up India States’ Conference’, the ministry she has lined up a series of meetings in the next few days with different stakeholders, including start-up founders and investors to discuss and resolve the sector’s issues.
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Highlighting government’s efforts to improve ease of doing business, she said a start-up would now require only a certificate of recognition from the Department of Industrial Policy and Promotion (DIPP) for IPR-related benefits.
A panel of facilitators has also been constituted to provide assistance in the process, wherein, DIPP would bear the facilitation cost.
“In order to avail IPR-related benefits — rebate in fee up to 80 per cent and free of cost facilitation in filing IPR applications — a start-up will now be required to obtain only a Certificate of Recognition from DIPP and will not be required to be examined by the Inter-Ministerial Board, as was being done earlier,” Ms. Sitharaman said.
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DIPP has also written to top 50 companies requesting them to support the Start-up India initiative under their CSR activities by setting up new incubators in collaboration with educational institutes.
Reacting to the some criticism about government interference in implementing the action plan for start-ups, particularly on extending tax holiday, the minister said: “As and when money has to be spent, it will have to be looked into. All of us are duty-bound to be accountable and transparent... Therefore, there has to be an inter-ministerial board.”
Tax breaksIndia has been pegged at third place behind U.S. and U.K. in terms of the number of start ups. Close to 4,400 technology start ups exist in India and the number is expected to reach over 12,000 by 2020.
Asked about success of start-ups, she said: “Start up rate of success, world over, is not very high. But that is nature of the business…what government can do is to give a chance for every idea to reach some stage which otherwise would have been impossible. Give them tax breaks, make it easier for them to get funds. The market will determine which ideas go commercial.”