Start Up India, Stand Up India is an ambitious plan of Prime Minister Narendra Modi to promote and nurture entrepreneurship culture in the country. In an environment of global economic slowdown, this plan if implemented properly can do wonders for the country where 65 % of population is in the working age of 15-50 years. The plan is particularly targeted at MSMEs which provide employment to hefty 8 crore people in the country.
Why MSME? Why not to big industrialist like Tatas, Birlas? After all these big bang industrialist are running the businesses for years. It is well known fact that big companies absorb fewer people to maintain margin and profits.
Because MSME contributes to:
- 45% manufacturing output (Our manufacturing industry is down)
- 40% of export (Earns foreign exchange)
- Self-employment and provide employment to others
- Ease of doing business
- More employment
- Bankruptcy Bill 2015
- Expediting the winding up of company
- Easier entry and exit norms for startups
- No inspections for first three year
- Start up profits will not be taxable for first three years
- No capital gains tax for start-up
Issues need to be addressed
- Lack of Infrastructure, electricity
- Slow broadband in tier-2 and tier-3 cities
- Availability of skilled man power
India Aspiration Fund
It will be Funds of fund to increase capital availability for banks. It would invest in venture capital funds for meeting the equity requirement of MSME start-ups. Life Insurance Corp. of India (LIC) will be a partner and co-investor in the fund. It will have an initial corpus of Rs.2,000 crore managed by SIDBI. SIDBI Make in India Loan for Small Enterprises [SMILE] Scheme of Rs 10,000 crore will also augment the MSME startups.
National Credit Guarantee Trust Company (NCTGC)
The government will provide credit guarantee through NCGTC with corpus of Rs. 500 crore per year for the next four years. This will provide opportunity to entrepreneurs to experiments with their ideas.
Entrepreneurs will be motivated to use less energy, less water and keep water clean.
Atal Innovation Mission
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