Introduction
As stated by Prime Minister Modi, Start-ups are considered to be backbone of the new India. PM Modi made the announcement via video conference on January 15, 2022, as part of the Azadi ka Amrit Mahotsav’s week-long event “Celebrating Innovation Ecosystem.” The goal is to foster a start-up culture at the grassroots level, which will help to create jobs and encourage long-term growth. ‘National Start-up Day is a great move by the government in liberating entrepreneurs and innovation from bureaucratic silos,’ said Prime Minister Modi.
Importance of National Start-up Day
The Start-ups are considered to be the backbone of the country. Pursuant to the contribution made by the start-ups to the Indian Economy, one has to realize that it is pertinent to recognize their ideas and efforts. Following are some major milestones achieved by start-ups as stated by PM Modi on January 15, 2022 :-
- Start-ups play a critical role in providing India’s ecosystems with new opportunities and possibilities. By establishing new programs to strengthen the local economy and create jobs, they can make a significant difference in many semi-urban and rural communities. Technological improvements have benefitted our country’s creativity, entrepreneurship, and ecosystems.
- The year 2022 has opened up new vistas for the Indian ecosystem,” Prime Minister Modi remarked, speaking to over 150 start-ups from diverse industries throughout the country. “Start-ups will play a significant role as India celebrates its 100th year of freedom.”
- During the videoconference session, the Prime Minister praised their efforts in turning their ideas into businesses and expanding to at least 625 districts across India, which bolstered industry participants’ spirits. Further in each of these 625 districts, at least one start-up may be identified. In India, about half of all start-ups are based in Tier II or Tier III cities. It demonstrates that people from all walks of life are turning their ideas into companies.
- India has generated 42 unicorns within the past year, which has instilled confidence in the Indian start-up ecosystems for a bright future. It was stated by PM that India’s current innovation efforts have resulted in a significant increase in the country’s standing on the Global Innovation Index. In 2015, India was rated 81st in this ranking. India has slipped to 46th place in the Index.”
- The Prime Minister further asked all entrepreneurs to look for semi-urban and rural regions in which to start new businesses and contribute to rural India’s growth. This will assist the country in fulfilling its greatest potential.
- Taking into account the milestones achieved by start-ups the current decade has been dubbed as India’s ‘techade’.
- It was reiterated that several measures have been undertaken to support the start-ups which includes removal of Angel Tax and simplification of Tax procedures. Previously the Angel Investors were taxed heavily for their investments made on the start-ups but On 24th May 2018, the Indian government acknowledged a long-standing demand of the start-up community in the country, announcing that the angel investors would receive a total exemption on the investments in the start-ups.
Future Challenges for Start-ups
- Taking into account the milestones achieved by the start-up industry, it is pertinent that the government recognizes the impending challenges to the start-up ecosystem.
- Cryptocurrency has become point of deliberation in today’s world. There have been several start-ups specializing in cryptocurrency such as Coinswtich, CoinDCX etc. However, with little regulations on the subject matter of cryptocurrency, the business could be under impending risks. Hence it is pertinent that government take measures in order to protect the start-ups in this sector.
- With the focus on the Ecommerce and Retail Sector, the government has to realize that start-ups are investing greatly in these sectors. However, no major data protection laws in India, the investment is likely to entail risks that would jeopardize the start-ups in this sector.
- Further the government has to take into account the new advancements in the coming decade wherein ideas such climate change would be reality and start-ups would potentially work towards technologies relating to the same. Experts have argued that cleantech start-ups working towards environment would require government aid in order to flourish.
Conclusion
According to industry analysts, National Start-up Day validates the role of start-ups in growing the country’s GDP and enhancing India’s standing on the global arena, and it will inspire young people to embrace entrepreneurship as a key career option. Further the government measures have to be strengthened in the near future in order to combat the next generation challenges.