In news : Prime Minister to address Startup India International Summit – Prarambh this evening
Background: It is being organised as a follow up of the announcement made by the Prime Minister at the fourth Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit held in Kathmandu in August 2018 wherein India committed to host the BIMSTEC Startup Conclave
Key features of the summit
- Objective: The objective is to focus the attention on global capital for startups in India, mobilize domestic capital, provide opportunities for accessing international markets to our startups and evolve enabling policy provisions.
- Organized by: It is a two-day Summit organized by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
- The Summit marks the fifth anniversary of the Startup India initiative, launched by the Prime Minister on 16th January, 2016.
- The Summit is built on the foundation set through the 19-point action plan of the Startup India initiative in 2016.
- With participation from over 25 countries and more than 200 global speakers, the summit will be the largest startup confluence organised by the Government of India since the launch of the Startup India initiative
- The event is supported by Industry bodies Invest India, FICCI, Indian Angel Network, IVCA, TiE Delhi NCR, CII, NASSCOM, SIDBI, TiE Globaland International Finance Corporation.
About the Startup India initiative
Startup India is a flagship initiative of the Government of India, intended to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. Since the launch of the initiative on 16th January, 2016, Startup India has rolled out several programs with the objective of supporting entrepreneurs, and transforming India into a country of job creators instead of job seekers.
Startup India Action Plan
The broad scope of Startup India’s programs is outlined in the Action Plan below, and is managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT). The 19-Point Action Plan envisages the following forms of support for Startups, and more:
Key features of Startup India Action Plan
- Compliance Regime based on Self-Certification with an objective to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.
- Startup India Hub with an objective to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.
- Rolling out of Mobile App and Portal with an objective to serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders.
- Legal Support and Fast-tracking Patent Examination at Lower Costs with an objective to promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual Property services and resources, including fast-track examination of patent applications and rebate in fees.
- Relaxed Norms of Public Procurement for Startups with an objective to provide an equal platform to Startups across sectors vis-à-vis the experienced entrepreneurs/ companies in public procurement.
- Faster Exit for Startups with an objective to make it easier for Startups to wind up operations.
- Providing Funding Support through Fund of Funds with a Corpus of Rs. 10,000 crores with an objective to provide funding support for the development and growth of innovation-driven enterprises.
- Credit Guarantee Fund for Startups with objective to catalyze entrepreneurship by providing credit to innovators across all sections of society.
- Tax Exemptions on Capital Gains with an objective to promote investments into Startups by mobilizing the capital gains arising from the sale of capital assets.
- Tax Exemptions to startups for 3 Years with an objective to promote the growth of Startups and address working capital requirements.
- Tax Exemption on Investments above Fair Market Value with an objective to encourage seed-capital investment in Startups.
- Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform with an objective to galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.
- Launch of Atal Innovation Mission (AIM) with an objective to serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology-driven areas.
- Harnessing Private Sector Expertise for Incubator Setup with an objective to ensure professional management of Government sponsored/funded incubators, Government will create a policy and framework for setting-up of incubators across the country in public-private partnership.
- Building Innovation Centers at National Institutes with an objective to propel successful innovation through augmentation of incubation and R&D efforts.
- Setting up of 7 New Research Parks Modelled on the Research Park Setup at IIT Madras with an objective to propel successful innovation through incubation and joint R&D efforts between academia and Industry.
- Promoting Startups in the Biotechnology Sector with an objective to foster and facilitate bio-entrepreneurship.
- Launching of Innovation Focused Programs for Students with an objective to foster a culture of innovation in the field of Science and Technology amongst students.
- Annual Incubator Grand Challenge with an objective to support creation of successful world-class incubators in India
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
- BIMSTEC is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.
- This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration.
- It constitutes seven Member States: five deriving from South Asia, including Bangladesh, Bhutan, India, Nepal, Sri Lanka, and two from Southeast Asia, including Myanmar and Thailand. Initially, the economic bloc was formed with four Member States with the acronym ‘BIST-EC’ (Bangladesh, India, Sri Lanka and Thailand Economic Cooperation).
- Following the inclusion of Myanmar on 22 December 1997 during a special Ministerial Meeting in Bangkok, the Group was renamed ‘BIMST-EC’ (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation).
- With the admission of Nepal and Bhutan at the 6th Ministerial Meeting (February 2004, Thailand), the name of the grouping was changed to ‘Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation’ (BIMSTEC).