Start-up India to Move Out of Invest India’s Ambit
- September 17, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Start-up India to Move Out of Invest India’s Ambit
Sub :Eco
Sec: External Sector
- Commerce and Industry Minister Piyush Goyal announced that Start-up India will be moved out of Invest India, which is the government’s official investment promotion and facilitation agency.
- New Entity Formation:
- A new non-profit company will be created to house the Start-up India initiative.
- This new entity will be set up under Section 8 of the Companies Act, 2013.
- It will operate independently, reflecting the growing importance of the start-up ecosystem.
- National Startup Advisory Council:
- The newly formed company could also serve as the home for the National Startup Advisory Council.
- SIDBI’s Involvement:
- SIDBI (Small Industries Development Bank of India) will be actively involved in this new setup to provide financial support and growth opportunities.
- BHASKAR Platform:
- Minister Goyal also unveiled the Bharat Start-up Knowledge Access Registry (BHASKAR), which is a networking platform for start-ups to enhance collaboration and access to resources.
- Rationale:
- The Start-up India initiative has grown into a powerful ecosystem, and this move allows it to have its own structure to better support its mission.
Start-up India
Launched in 2016 by the Government of India, Start-up India aims to promote innovation, entrepreneurship, and job creation. The initiative provides various benefits, including easier compliance norms, tax exemptions for startups, and financial support through funding schemes such as the Fund of Funds for Startups (FFS). It also focuses on building a strong ecosystem by providing incubation centers, fostering partnerships, and streamlining processes for setting up businesses.
Key Objectives:
- Simplification of regulatory frameworks.
- Financial support and incentives (such as tax holidays, capital gains tax exemption, and credit guarantee funds).
- Industry-academia collaboration for entrepreneurship promotion.
- Creation of networking platforms for entrepreneurs, venture capitalists, and other stakeholders.
Invest India
Invest India is the official investment promotion and facilitation agency of the Government of India, tasked with attracting and assisting foreign investors and promoting domestic investments. It provides sectoral expertise, market intelligence, handholding services, and helps investors navigate regulatory challenges.
Section 8 of the Companies Act, 2013
Section 8 of the Companies Act permits the creation of companies with charitable objectives like promoting commerce, art, science, sports, education, research, social welfare, and environmental protection. These companies, known as “Section 8 Companies,” are similar to NGOs or non-profits, but they have a corporate structure.
National Startup Advisory Council
The National Startup Advisory Council (NSAC) was set up by the Government to advise on measures needed to create a robust startup ecosystem. The council includes stakeholders from the startup community, government, and academia.
Objectives:
- Promote innovation-driven entrepreneurship.
- Encourage funding and growth of startups.
- Address challenges faced by startups, including policy issues.
SIDBI (Small Industries Development Bank of India)
SIDBI, established in 1990, is the principal financial institution for the promotion, financing, and development of the Micro, Small, and Medium Enterprises (MSME) sector. It offers funding solutions and promotes innovation, skills development, and employment creation within the MSME sector.
BHASKAR Platform
BHASKAR (Bharat Start-up Knowledge Assimilation and Research) is a platform designed to support startups by offering resources like mentorship, training, market intelligence, and investment opportunities. It aims to empower startups with knowledge, market access, and funding, especially in sectors like technology, agriculture, and manufacturing.