Home Knowledge Path to Progress.... Startup Scheme

Path to Progress.... Startup Scheme

by Madhavi Mihir Bhuta (National Executive Member, BJP Mahila Morcha)
Oct 13, 2020

A nation that initiates promoting its Manufacturing sector and involves, encourages and inspires its citizens to further themselves in Manufacturing and Creating on our own soil, instead of importing products produced in foreign lands walks rapidly on the path of growth.

This is the classic example of China and its success story on Economic front.

It is the undoubted truth that a nation, pacing on the economic ladder, eventually turns it into political strength.
This is the current scenario.

It is so very applicable for a country like ours as Bharat, similar to China, is a nation with huge population. (We are second, after China, with a population of 135 Crores.)

The major problem that a country with such a colossal population would face is of providing job opportunities to every citizen.

With the increasing scale of education, the youth that comes out with degree certificates finds it extremely difficult to acquire suitable jobs. Eventually they are frustrated and many of them prefer the option of migrating to foreign lands in search of better prospects.

This has been the scenario of the last few decades post independence, when Western influence ignited Degree-based education, replacing Bharat’s age-old education system based on skills and Craftsmanship.

To overcome such a situation of brain drain as well as to find a solution to the growing unemployment, the previous Governments, since the time of independence, have failed miserably.

When Narendra Modiji took the oath as the Hon. Prime Minister of Bharat, he had a strategy carved out to put  Bharat on the global map and change the lives of the Common Man residing anywhere on Bharatiya soil.

With the innovations and education, both if applied in the Manufacturing sector, the nation’s growth path would surely be carved.

Hence, to initiate Bharatiyas into participating in Nation Building through involving themselves in the Manufacturing sector, Narendra Modiji led the Government-launched Start Up India Yojana on the 16th of January 2016. The key ministries to take forward this flagship mission were the Ministries of Commence and Industry.

A Start-Up is defined as an entity that is headquartered in Bharat, which was opened less than 10 years ago and has an annual turnover of less than 100 Crores.
The important aspect is that the entity should not have been formed by splitting or reconstructing a business, process or service.

The Start-Up should have the goal of working towards developing new innovation or improving a product or service.
It is an essential requirement that the Startup business must possess a scalable model with a high potential of employment generation.
The action plan of this initiative focuses on three areas...

1) Simplification and Handholding.
2) Funding Support and Incentive.
3) Industry-Academia Partnership and Incubation.

An additional area relating to this initiative is to discard restrictive State Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals and Environment Clearances.

It has been organised by the Department for Promotion of Industry and Internal Trade.
Each Start-Up Scheme is Missioned towards boosting the Bharatiya Start-Up ecosystem.

By 2020, the number of Start-Ups have reached over 12,000 and Bharat has achieved third place behind US and UK in terms of the number of Start-Ups.
Furthermore, in line with its global counterparts, Bharat has its own Billion-Dollar club to boast about. This includes Start-Ups like Flipcart, Snapdeal, Ola, InMobi, Hike, MuSigma, Payton, Zomato and Quikr.

Under this iniative, the Government of Bharat has already launched the I-MADE Programme to help Bharatiya entrepreneurs build 10 Lakh mobile PP Start-ups.
The Government has created ample space for the ease of promoting Start-Ups.

There are Nine labour laws and three environmental laws which need to be fulfilled. The new entrepreneur has to simply self-certify the required documents for the same.

There would not be any inspection for first three years.
The Government has also ensured provision of 3 years Tax holiday for the new Start-Up, provided they comply by certain necessary regulations.
This is applicable only to Start-Ups launched after the 1st of April 2016.
The Modi Government has been determined regarding expeditious as well as least-cumbersome implementation of the process for the scheme.
The registration for the new Start-Ups is an online process and mostly gets completed within 3 days.
The registration is done on the http://www.startupindia.gov.in portal.

The significant aim of the Start-Up scheme is to help launch new businesses and catalyse upcoming entrepreneurs and boost economic development. It also motivates the youth to absorb themselves in entrepreneurship.

The Government has created a fund of 2,500 Crores for this scheme as well as a Credit Guarantee of 500 Crores.

Each Start-Up has to register under Department of Industrial Policy and Promotion (DIPP).
Post this registration, the Startup gets entitlement to be funded by The Angle Fund, The Private Equity and The Incubation Fund. The Patent and the Trademark guarantee is confirmed after the letter from the Incubator.

One understands the value as well as the impact of the Start-Up Scheme, gearing the inspirational examples of Start-Up beneficiaries.
Rajat Jain, based in a small town of Dehradun in Uttarakhand, lost his dear friend at the of 21 to Cardiac Arrest. He felt completely shattered and helpless and later he found that even preliminary cardiac monitoring was not available in many parts of Bharat.

According to WHO, 17.9 million people die each year from CVDs (Cardio Vascular Diseases), an estimated 31% of all deaths worldwide. The prime cause behind such deaths is the non-availability of monitoring equipment, routine monitoring, lack of routine health checks or diagnoses.

Hence, this unacceptable loss propelled Rajat Jain along with his brother and friends to do something for the cause so no other faceless friend in a nameless corner of the country lose another.

They established Sunfox Technologies to developed a Compact ECG monitor, “Spandan”, strikingly light with a weight of just 12 grams and the size of a Matchbox.
They fulfilled their dream by registering their innovation under the Start-Up scheme in 2016-17. They received the Seed capital of 25 Lakhs through the Start-Up initiative and were given almost 80% rebate while registering their Trade Mark.

Later on, they also participated in a Competition for effective innovation by Government of Bharat and won the prize. Through the Start-Up Scheme, they exhibited their innovation at the World Economic Forum.

Similar is the case of Sidharth Arora.
Sidharth Arora holds a PhD in Biotechnology and has expertise in the field of Industrial Biotechnology. During his doctoral research, he developed a novel solid-state fermentation bioreactor for the production of Industrial enzymes.

Presently the company is involved in production of two enzymes i.e. phytase and cellulose at a lab scale. Phytase is used in animal feed to make Phosphate and other important vitamins, amino acids and minerals for animals. Poultry, Cattle and Fisheries industry are huge beneficiaries of Phytase. Cellulase is used in Commercial food processing, Coffee as well as in Textile industry and laundry detergent to biofuel industry.

Another mission of the company is purchasing crop stubble from farmers around Roorkee and use it as a substrate for the production of enzyme and feed pellets.
This not only helps in mitigating air and soil pollution caused due to burning of agro-waste but also provides them with a potential source of additional revenue.

Such an innovative venture has been supported by the Start-Up India scheme and Siddharth Arora of TIDES Business Incubator has received financial support of 47.5 Lakhs from the Government of Bharat.

Entrepreneurship and Start-Ups is no more a big city phenomenon.
Historically, people from small towns migrated to cities for better work opportunities. But now, with the implementation of the Modiji-led Government‘s flagship mission of Startup India, the faraway states are marching ahead with an ascending growth chart.

Uttarakhand, the hilly state amidst the Himalayas, with its aggressive approach and wholehearted initiation to promote the Startup Scheme, has supported 80 Startup ventures and provided Seed capital to 14 Startups.

Uttarakhand based Professor Swati Joshi was pained to witness the pain suffered by womanfolk during Menstruation. She believed the pain killers that women swallow to get some short term relief from pain in the lower abdomen were harmful to their health in long run.

Hence, through deep research she initiated an innovation for a device that would bring relief from the pain. She presented her innovation in the competition of Startup Scheme organised by Government of Uttarakhand.

Winning the first prize in the competition, Swati received immense financial and administrative support to further her innovation.

The Start-Up India Scheme is an initiative to support and strengthen all those who have zeal and passion to innovate and create that would add to Nation Building. Earlier, the youth belonging to Middle and Lower class hardly got the opportunity and support to fulfil their vision and dreams of growth. Hence, only those with financial significance had eco-system to grow. The growth saga was written in Metros and big cities. Those hailing from smaller towns and far off regions were left out of such progress journeys.

But the vision of a leader, rising from humble background, can experience the plight of all those yearning to grow.
The Hon. Prime Minister is one such leader with empathy and compassion, who goes all out to lend support for all those inclining to make Bharat a global leader.