Government Support for Entrepreneurship

Development
• Initiatives for Start-up India
• Stand up India and Skill India
• Government of Gujarat schemes for Start-up
• Start-up and ecosystem
• Stand-up India: Women and Minority
Entrepreneurship
• Ease of Doing Business (EoDB)
– Overview, Ranking,
– Determinants of EoDB
 Government of India Support for
Innovation and Entrepreneurship in India
• The Government of India has undertaken several
initiatives and instituted policy measures to foster a
culture of innovation and entrepreneurship in the country.
• In the recent years, a wide spectrum of new programmes
and opportunities to nurture innovation have been
created by the Government of India across a number of
sectors.
• From engaging with academia, industry, investors, small
and big entrepreneurs, non-governmental organizations
to the most underserved sections of society.
 Government of India Support for
Innovation and Entrepreneurship in India
• Recognising the importance of women
entrepreneurship and economic participation in
enabling the country’s growth and prosperity,
Government of India has ensured that all policy
initiatives are geared towards enabling equal
opportunity for women.
• The government seeks to bring women to the
forefront of India’s entrepreneurial ecosystem by
providing access to loans, networks, markets and
trainings.
 Efforts at promoting entrepreneurship and
innovation
1. Startup India
2. Make in India
3. Atal Innovation Mission (AIM)
4. Support to Training and Employment Programme for Women (STEP)
5. Jan Dhan- Aadhaar- Mobile (JAM)
6. Digital India
7. Biotechnology Industry Research Assistance Council (BIRAC)
8. Department of Science and Technology (DST)
9. Stand-Up India
10. Trade related Entrepreneurship Assistance and Development (TREAD)
11. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
12. National Skill Development Mission
13. Science for Equity Empowerment and Development (SEED)
 Start Up India
• Through the Startup India initiative, Government of India promotes
entrepreneurship by mentoring, nurturing and facilitating startups throughout their
life cycle.
• Since its launch in January 2016, the initiative has successfully given a head start to
numerous aspiring entrepreneurs.
• With a 360 degree approach to enable startups, the initiative provides a
comprehensive four-week free online learning program, has set up research parks,
incubators and startup centres across the country by creating a strong network of
academia and industry bodies.
• More importantly, a ‘Fund of Funds’ has been created to help startups gain access
to funding.
• At the core of the initiative is the effort to build an ecosystem in which startups can
innovate and excel without any barriers, through such mechanisms as online
recognition of startups, Startup India Learning Programme, Facilitated Patent filing,
Easy Compliance Norms, Relaxed Procurement Norms, incubator support,
innovation focused programmes for students, funding support, tax benefits and
addressing of regulatory issues.
• https://www.startupindia.gov.in/content/sih/en/home-page.html
 Stand – Up India
• Launched in 2015, Stand-Up India seeks to leverage institutional
credit for the benefit of India’s underprivileged.
• It aims to enable economic participation of, and share the
benefits of India’s growth, among women entrepreneurs,
Scheduled Castes and Scheduled Tribes.
• Towards this end, at least one women and one individual from
the SC or ST communities are granted loans between Rs.1
million to Rs.10 million to set up greenfield enterprises in
manufacturing, services or the trading sector.
• The Stand-Up India portal also acts as a digital platform for small
entrepreneurs and provides information on financing and credit
guarantee.
• https://www.standupmitra.in/Home/AboutUs
 Introduction

 Skill India is an initiative of the Government of India It was launched by Prime

Minister Narendra Modi on 15th July 2015 with an aim to train over 40 crore people in
India in different skills by 2022.

 The initiatives include National Skill Development Mission, National Policy for
Skill Development and Entrepreneurship 2015, Pradhan Mantri Kaushal Vikas
Yojana (PMKVY) scheme and the Skill Loan scheme.

 Skill India won’t be just a programme but a movement. Here, youth who are
jobless, college and schools dropouts, along with the educated ones, from rural and
urban areas, all will be given value addition.
 Departments

The National Skill

National Skill Development Corporation Development
Corporation India (NSDC)
was setup as a one of its
kind, Public Private
National Skill Development Agency (NSDA)
Partnership Company
with the primary
mandate of catalysing
National Skill Development Fund the skills landscape in
India.
 Departments

The National Skill

Development Agency, an
autonomous body, was
National Skill Development Corporation created with the
mandate to co-ordinate
and harmonise the skill
National Skill Development Agency (NSDA) development activities in
the country, is part of
the Ministry of Skill
Development &
National Skill Development Fund
Entrepreneurship
(MSDE).
 Departments

The National Skill

National Skill Development Corporation Development Fund was
set up in 2009 by the
Government of India for
National Skill Development Agency (NSDA) raising funds both from
Government and Non-
Government sectors for
skill development in the
National Skill Development Fund country.
 Government of Gujarat schemes for Start-up

Policy Name Electronics & IT/ITeS Start-up Policy (2016-21)

Website http://www.startupgujarat.in/index.htm
Nodal Agency Industries Commissionerate, Government of Gujarat
Under this scheme, any individual/ group of
individuals having innovative idea/ Concept will be
eligible and/ or Universities/ education institutions,
Incubation Centre/ PSUs/ R&D Institutions/ Private
and other establishments will be eligible as an
institution to support and mentor to innovators as
approved by Committee. Startups in an economy's
technology sectors is an important indicator of
technological performance for several reasons.
 Indian Startup Ecosystem - Facts
• India has the 2rd largest startup ecosystem in
the world; expected to witness YoY growth of
10-12%
• ~20,000 startups in India; around 4,750 of
these are technology led startups
• 1,400 new tech startups were born in 2016
alone; implying there are 3-4 tech startups
born every day
 Growth Drivers for Startup India
• As per a survey report by Innoven Capital (survey of 140
founders); leading factors that make India appealing as a startup
nation are-
– Cost of doing business
– Proximity to customers/vendors
– Size of domestic market
• 7 million college graduates per year; 55% of the youth prefer
working in startups over corporates (as per a youth of the nation
survey of 150K young Indians). Median age of founders: 31 years
• Second largest consumer internet market in the world
(overtaking China) with 462 mn internet users, 80% of these
users are mobile based
 Sector & Location Trends
• While eCommerce and Aggregators have become
mature; Fintech, Edutech and Healthtech are
emerging verticals
• Bangalore, Mumbai and NCR top startup destinations
with over 65% of the total Indian startups.
• Bangalore has also been listed within the world’s 20
leading startup cities in the 2015 Startup Genome
Project ranking. It is also ranked as one of the world’
s five fastest growing startup cities
Enablers of Startup Ecosystem
 Enablers of Startup Ecosystem
• Infrastructure
– 280+ Incubators/Accelerators /Co-Working Space with 40% YoY growth
– Tier 2/tier 3 cities are gaining traction, with 66% new incubators established
• Funding
– $4 bn poured into 1040 deals in 2016 – 55% decrease in deal value, volume
increase by 3% from 2015
– On an average, four startup deals were announced every weekday throughout
2016
– Angel investments are on the rise, with a 20% increase in the active investors
– Global investor such as Alibaba Group, Soft bank, Sequoia and Foxconn have
started to invest in the Indian startup ecosystem
• Corporate Connect - Enterprises are realizing the disruptive potential of start-ups
and are thus, partnering/investing in them. As per KPMG 2016 CEO Survey; 37% of
CEOs surveyed deem their organisations to be highly capable of connecting in a
beneficial way with start-ups. Examples of corporate support:
– Wipro has setup a $100mn fund to invest in startups
– IBM is partnering with 100 Indian big data and IoT start-ups,
– Apple recently acquired Tuplejump - an AI based startup from Hyderabad
 Startup Gujarat - Ecosystem
• About Scheme
• How it Works
• Incubators
• Mentors
• Innovators
• Entrepreneurship Cell
Startup Gujarat Ecosystem
How it works
Incubators
 List of Incubators
• Aashray - Promotion of Social Enterprises Foundation (Aashray Incubator)
• Anand Agricultural University
• C. U. Shah University
• Centre for Innovation Incubation and Entrepreneurship(CIIE), (IIM)
• COGNIAN
• Dharmsinh Desai University (DDU)
• Dhirubhai Ambani Institute of Information and Communication Technology (DAIICT)
• Entrepreneurship Development Institute of India(EDI)
• Ganpat University
• GIAN
• GNLU Legal Incubation Center (GLIC)
• Gujarat State Biotechnology Mission(GSBTM-SavliBioIncubator)
• Gujarat Technological University
• And Many More…
 Support to Training and Employment
Programme for Women (STEP)
• STEP was launched by the Government of India’s Ministry of
Women and Child Development to train women with no access
to formal skill training facilities, especially in rural India. The
Ministry of Skill Development & Entrepreneurship and NITI
Aayog recently redrafted the Guidelines of the 30-year-old
initiative to adapt to present-day needs. The initiative reaches
out to all Indian women above 16 years of age. The programme
imparts skills in several sectors such as agriculture, horticulture,
food processing, handlooms, traditional crafts like embroidery,
travel and tourism, hospitality, computer and IT services.
• http://wcd.nic.in/
Ease of Doing Business- A Myth or Reality
Ranking as per World Bank’s
Doing Business Report 2016
PM MODI JI’S
• World Bank has placed India
Views on Ease of
Doing Business on 12th position in the list of
countries that had ensured
ease of doing business.
• Today, the world is facing a
very deep economic crisis
and in this situation, India is a
beacon of hope.
• Whether it is World Bank,
IMF or Credit Rating
Agencies, all of them
consider India one of the
fastest growing economies,
ARUN JI at World
• One main reform which is
Economic Forum,
DAVOS (Jan, 2016) still work in progress is Ease
of Doing Business in India.
• We did not have a great
track record on that, but our
rankings have improved
there also.
• Still, it remains a work in
progress and we will
continue to take steps on
that front.
GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
1. Online process for applying Industrial License
(IL) and Industrial Entrepreneur Memorandum
(IEM)
2. Ministry of Corporate Affairs has introduced an
integrated process of incorporation of a company
3. To remove requirements of minimum paid-up
capital and Common Seal for companies.
4. 20 services are integrated.
-contd.
 GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
5. Initial validity period of Industrial License has
been increased to three years from two years.
6. A checklist has been developed for processing all
applications filed by foreign investors relating to
foreign investments.
7. An Investor Facilitation Cell has been created.
8. Registration process of VAT and Professional Tax
has been merged into a single process.
…contd.
 GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
9. Registration for VAT in Delhi has been made
online
10.TIN allotment is done real-time
11.business can start immediately on receipt of TIN
number.
12.DIPP requested all Secretaries of Government of
India and Chief Secretaries of the States/UTs to
simplify and rationalize the regulatory environment
…contd.
 GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
13.Notification has been issued on 12-03-2015 by
DGFT to limit number of documents required
for export and import to three.
14.Defence products’ list for industrial licensing
has been issued.
15.To facilitate investors and to reply to their
queries, Frequently Asked Questions (FAQs) by
applicants.
…contd.
 GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
16. NIC Code- 2008 has been adopted.

17.Security Manual for Licensed Defence

Industry’ has been issued.

…contd.
 GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
18.SEZ Units allowed removing goods for
repair, replacement, testing, calibration,
quality testing and research and development on
self-attestation.
19.Process of applying for Environment and
Forests clearances has been made online
20.Ministry of Labour is working for
rationalization of Labour laws.
…contd.
 GOVERNMENT INITIATIVES FOR
‘EASE OF DOING BUSINESS ’
21.Facilitating revival and rehabilitation of
MSMEs.

22.Unified portal for registration of Units for

reporting of inspection, submission of returns
and grievance redressal.

23. Passing of Insolvency & Bankruptcy Code.

 India Moves Up in World Bank's
Ease of Doing Business
• India now ranks 130 out of 189 countries,
moving up 12 places from last year.

• China is ranked 84 and Pakistan is at 138th

place.
INDIA’S RANKING
EASE OF DOING BUSINESS
1. Implementation of the outcome of Committee
of Secretaries constituted by PM
2. GST rollout
3. Clear Taxation Policy
4. Easy/Clear Labour Policy (Exit Policy)
(Rajasthan & Maharashtra model)
5. Less Regulatory burden on MSMEs
…contd.
6. ‘Make in India’, ‘Start up India’, ‘Stand up
India’
7. Ease of accessing- Land, Labour, Capital and
Technology
8. More and more Free Trade Agreements
(FTAs) on bilateral and multilateral level
9. Insolvency and bankruptcy Law
…contd.
10.Public Sector Reform
11.Predictable legal environment for
manufacturing and trade
12.Public interface at Regulatory Bodies-
SEBI, IRDA, FSSAI, CBDT, CBEC and
other Ministries/Regulators.
…contd.
13.Financial Reforms for tackling NPAs.

14.Unique ID No. for Corporates to do

business

15.Co-ordination between MCA, CBDT, CBEC

and other regulators for use of common
unique ID for Corporates.
Rank of India – EoDB 2018
 Determinants of EoDB
• The number of days and procedures for the following activities
are separately recorded for:
(i) Starting a Business
(ii)Dealing with Construction Permits
(iii) Getting Electricity
(iv) Registering a Property
(v) Paying Taxes
(vi) Enforcing Contracts.
• A reduction in the number of days and/or number of
procedures obviously increases the ease of doing business and
pushes up GDP growth.
 Website
• http://www.makeinindia.com/about
• http://aim.gov.in/index.php
• http://wcd.nic.in/schemes/support-training-and-employment-programme-
women-step
• http://www.digitalindia.gov.in/content/introduction
• http://www.birac.nic.in/desc_new.php?id=89
• http://pib.nic.in/
• https://www.startupindia.gov.in/
• https://www.standupmitra.in/Home/AboutUs
• http://www.dcmsme.gov.in/schemes/treadwomen.htm
• http://www.dcmsme.gov.in/schemes/treadwomen.htm
• http://www.pmkvyofficial.org/Index.aspx
• https://www.msde.gov.in/nationalskillmission.html