Startup Policy Current Affairs
The Department of Industrial Policy and Promotion (DIPP), which is the nodal body for Start-up India, has amended the definition of a start-up. As per the new definition, an entity will be considered as a Start-Up if its turn over is less than Rs 25 crore and has not completed seven years from the date of its incorporation/registration. In the definition, the change is with respect to the time period which is currently five years. The new definition has increased it to 7 years taking into the consideration the long gestation period involved in establishing start-ups.
Other Salient Amendments
The scope of definition of start-up will also be widened to include scalability of business model with potential of employment generation or wealth creation.
An entity that has completed 7 years from the date of its incorporation or if its turnover exceeds Rs 25 crore, it will cease to be a start-up.
The process of recognition of an entity as a start-up will be through an online application made over the mobile app/portal set up by the DIPP.
For the Start-Ups in the biotechnology sector, they will be considered as start-ups for a period of up to 10 years from the date of incorporation/registration.
Start-ups will not require a letter of recommendation from an incubator or an industry association to get tax benefits under the Start-up India action plan. However, the entities should obtain a certificate of an eligible business from an inter- ministerial board of certification as constituted by the DIPP to claim tax benefits.
An entity will be deemed as a start-up if it is working towards innovation, development or improvement of products/processes/services, or if it is a scalable business model with potential for employment generation or wealth creation.
The new definition and amendments will help to ease of starting new business and will promote the start-up ecosystem. The tweak in the definition will also help the entities to avail government sponsored venture funding and tax and other benefits. It will create more jobs and promote entrepreneurship under the Start-up India scheme.
Start-up India was launched by Prime Minister Narendra Modi on 16 January 2016 to promote innovation and enhance economic growth and employment opportunities.
Gujarat government launched India’s first student startup and innovation policy with an aims to provide Rs 200 crore in the form of grants to ideas developed by students/
The policy aims to support over 1,000 innovation per year in the state and create pre-incubation support in all universities of the state.
- The policy will encourage the students from the state to undertake innovative projects related to society, industries, and community instead of conventional academic projects.
- It will support student-led startups and innovations as well as create an Innovation and Pre-incubation Ecosystem Support (IPIES) across all universities of the state.
- Under the pre-incubation support, help will be provided to students to convert their ideas from proof of concept (PoC) upto minimum viable proto-type (MVP) and also providing support for patent filing.
- The policy has been developed under the aegis of Education Department and state government will provide Rs 200 crore as State Innovation Fund (SIF) during the next five years.
- Of the Rs 200 crore SIF, Rs 100 crore will be allocated by the state government and the remaining amount will be created by internal sources, like university funds and CSR funds.
Earlier in 2015, Gujarat Government had unveiled startup-assistant scheme, as part of Gujarat Industrial Policy and in 2016 also had launched Information Technology Startup Policy.