National Startup Day: How Government Policies Can Empower India’s Startup Ecosystem

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National Startup Day, which takes place on the 16th of January every year, has a major relevance to India’s startup context. Hailed as the Indian startup day, it is a day to celebrate and appreciate Indian startups as well as debate on part played by government policies in the growth of new age businesses. According to the leaders of industries, for India to achieve higher results in startup development, better governmental policies should be provided to create favourable conditions for innovative development.

To discuss this awareness in detail about how the government policies can enable ecosystem of startup in Indian fraternity and how can ideals turn into business, this article will be written.

Government Policies: The new policy seems to be a game changer for the Indian startups.

However, the Indian Government has shown quite a lot of commitment in the recent past to foster entrepreneurial environment. From the launch of the Startup India campaign in 2016, to stepping up tax reforms and easing the processes of compliance, the government has been very supportive.

It has been perceived that Government policies not only assist the establishment of business related difficulties but also facilitate the constructing environment for innovative entrepreneurial ideas. Hear from Ankit Soni, the founder of a tech startup company: “the government support to startups in form of tax exemption, financial facilitation and change of laws to enhance Startups’ access to capital has enabled first time entrepreneurs to set up their own startup businesses,”

Government funding as an enabler of Startup Financing

Getting funding is one of the major challenges and worries that young firms face particularly at the initial stages of their business. To counter this, the Indian government has launched some measures such arm such as the Fund of Funds for Startups (FFS) as well as the Startup India Seed Fund Scheme. Out of these programs, the firms get financial support to enable them operate and expand their businesses.

‘Most of the start-up ideas are as good as being concepts in the absence of capital,’ pointed out Priya Sharma, an expert in venture capital. “Government-backed funds are also necessary to transform these concepts into working enterprises, expanding the target audience and achieving a strong impact in the market.”

Easy regulations and a cut, cut on compliance costs

The last aspect of government support is streamlining of administrative procedures is another key characteristic of government support to the industry. Before the launch of the schemes such as Startup India, the greenhorn had to navigate through a chain of complicated policies that could basically pose as a hurdle to his/her business.

Currently, the government has eased a number of measures to alleviate the regulatory pressures affecting the aspiring startups. For instance, the Ease of Doing Business measures such as registration process and time have brought about great change by easing entry of young business persons into business.

‘By dismissing unnecessary interference, bureaucracy and paperwork, the government lets new businessmen concentrate on creating their startups,’ said Neelesh Rathi, business consultant and a mentor for numerous startups.Encouraging Innovation through Tax Incentives

Lack of taxes and tax exemptions and incentives are also crucial to the development of new ideas of startups. Any startup which is registered under Startup India can be eligible for income tax exemptions for the first three years. This it makes it possible for the investors to reinvest the money back into the businesses which in turns breeds innovation.

Riya Gupta, a founder of a startup specialising in fintech said, “Tax exemptions enable people to free up cash to fund research, development and marketing ideas without worrying about taxes at the initial stage.” This increases the level of new ideas and helps develop the right environment.”

Trimming the Partnership between the Government and Private Players

Although much action is focused on the efforts of government to come up with programmes and policies that support startup companies, support from the private sector is crucial for the establishment of stable environment. There are several PPPs in place now, which offer different forms of support, including mentorship, funding, and networking, specifically to startups.

For instance, Atal Innovation Mission to promote an ecosystem of innovation like the government, institutions, and private sector in India. These programmes offer the opportunities such as research laboratory access, coaching, and market intelligence to the entrepreneurial aspirants.

‘The union of government resources and industry knowledge is a perfect recipe that encourages growth among India’s startups,’ stresses Ankit Soni. Startups not only acquire funds and permits but also acquire the knowledge to grow appropriately.

Future of India’s startup ecosystem

In the coming years, many of the gurus think that government policies will remain instrumental in determining the path of innovations in the Indian start-up environment. The government is trying and looking forward to coming up with more reforms and innovations and this is likely to make more startup concepts in India to be given a chance to grow and therefore the country will continue to gain a reputation as the global start hub.

Finally, National Startup Day is a reminder that there is a lot of hope to be found within the companies of this bright nation. The country must sustain positive action by the government in support of entrepreneurship thus opens new opportunities, new ideas to pave way for enabling more startups to prosper.

Final Thoughts

For young aspiring start up entrepreneurs National Startup Day is a day to ponder about available opportunities and the important role played by government funding to bring optimal turn out of the ideas regarding startups. Given the seriousness of the Indian government to support startups, the growth of the ecosystem in India will be promising in the future.

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