The Department of industrial policy and promotion unveiled its first-ever ranking of states and union territories in developing startup ecosystem for budding entrepreneurs. On the basis of measures to promote startups. the list released on 28 December 2018 showed Gujarat as the best performer.
27 states and 3 union territories took part in the exercise, stakeholders consultant by The Department of industrial policy and promotion (DIPP) and 7 key Reform areas were considered for the basis of the ranking. they included startup policy, incubation hub, skiing innovation, regulatory change Champions, procurement leaders and communication Champions.
On the basis of performance in these categories, Gujarat was identified as the best performer. Karnataka Kerala Odisha and Rajasthan made it to the top performer’s category while Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh and Telangana was in the leader’s category. States identified as an Aspiring leader include Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh and West Bengal while emerging States category includes Assam, Delhi, Goa, Jammu and Kashmir, Maharashtra, Punjab, Tamilnadu and Uttarakhand. Chandigarh, Manipur, Nagaland. Puducherry Sikkim and Tripura are in the bottom under the beginner’s category.
Ranking Of Startups India 2018
- Best Performer: Gujarat
- Top Performers: Karnataka, Kerala, Odisha, Rajasthan
- Leaders: Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Telangana
- Aspiring Leaders: Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh, West Bengal
- Emerging States: Assam, Delhi, Goa, Jammu and Kashmir, Maharashtra, Punjab, Tamil Nadu, Uttarakhand
- Beginners: Chandigarh, Manipur, Mizoram, Nagaland, Puducherry, Sikkim, Tripura
The exercise for conducted to promote capacity development and further the spirit of cooperative federalism. so far 22 states the formulated the startup policies.
Startup India is a flagship initiative of the NDA government. it is intended to build a strong ecosystem that is conducive for the growth of startup businesses so as to drive sustainable economic growth and generate employment opportunities. since the launch of the initiative on 16 January 2016 by Prime Minister Narendra Modi several programs have been undertaken to transform India into a country of job creators instead of job seekers.
The Startup India initiative has provided an enabling environment to startups in the country. ever since launch in January 2016 the initiative has given the marks needed a boost to startups in India. till date over 14600 startups have registered with the scheme and the numbers are rising every year.
On 16 January 2016 Prime Minister Narendra Modi launched the startup India initiative. it laid down the action plan to incentivise startups in India and to create a conducive ecosystem for the growth. the startup is described as a business unit that has been registered in the last 5 years. it has an annual turnover that does not exceed 25 crore Rupees. startups are also business entities that word to word innovation, development, deployment and commercialization of new products processes or services. the startup scheme has recognised over 14600 entities they are spread across 479 districts in 29 states and 6 union territories.
The Initiative has kicked off a Startup revolution in the country providing a huge boost to young entrepreneurs. in 2016, 503 startups were recognised, in 2017 5373 new startups added to the list. in 2018, 8724 startups registered in this list.
Looking at State wise figures Maharashtra has the maximum number of 2587 startups. these are in the fields IT, health, education, food, agriculture, renewable energy among others. Karnataka is the second face with 1973 startups, Delhi has 1833 such initiative, Uttar Pradesh stands at fourth place with 1129 startup initiative with 748 startups units Telangana is at the fifth place. Gujarat comes next with 712, Haryana has 710 startups, Mizoram and Sikkim have one startup each.
55% of startups are in Tier 1 cities, 27% in Tier 2 and 18% into tier 3 cities. The startup India initiative aims at encouraging entrepreneurs to create most startups in every city and town of the country. globally India stands behind the United States and the United Kingdom in the third position as a Startup hub, with one of the largest consumer markets in the world India has startups in every field. The maximum number of startups are in the IT sector. 15% of startups are in the Information Technology Sector, 9% in Healthcare and life sciences,7% in education while agriculture food and beverage sectors have 4% startups each. Other startups are in the field of fashion, Textiles. green technology, construction and real estate.
The Startup community is a symbol of India’s bright future. it generates employment lakh of young entrepreneurs aspirants. India has succeeded in creating a profitable environment for the startups and now the government is also started the startup Academy allowance program. the program is to fulfil the government mission to promote the spirit of entrepreneurship.
Startup India is extremely beneficial for those who want to start their own business. financial help is given to those who wish to start a business and at the same time that given tax-free business. apart from this, the Government offers several types of exemptions under the startup India scheme. lets understood the advantages associated with the startup India programme.
The idea behind Government startup India programme in January 2016 host to create employment opportunities for youth in the country, for the is the government also announced several concessions for new entrepreneurs under the startup India programme.
- Exemption from income tax on profits earned by entrepreneurs for the first three years.
- After investment, the sale of the property to be exempted from capital gains tax of 20%.
- Provision of a liberal patent for new enterprises.
- Reduction in patent registration fees by 80%.
- The 90-day period for entrepreneurs wanting to leave the business.
- Innovation courses for students under Startup India.
- Exceptions on Government purchases under Startup India.
However, to take advantage of the startup India scheme it is necessary to meet the criteria set by the government. on a Priority is mandatory to tell the number of jobs that would be created from a new startup.
Role of states in implementing startup India is also vital with the centre giving priority to startup India. at present 22 States surrounding the startup scheme and the remaining states and union territories are working to introduce the program. an important role of the states is to reduce the regulatory button on the startup founders which can be promoted by simplifying the rules under the jurisdiction of the state.
Startup India scheme has new policies and initiatives to make it easier for investors and startup founders to incubate the Ventures in the country. here let’s look at how the schemas help as well as encouraged young entrepreneurs to transform their innovative ideas into a profitable business venture.
Prime Minister Narendra Modi startup India has put India at Number 3 in world startup rankings. several programs in undertaken since the launch of the initiative to transform India into the country of job creators instead of job seekers.
Startup in the scheme is a platform that provides opportunities for youth to become industrialist and entrepreneurs. the government grant funds to people or companies to set up a business and create employment for others. the objective is to help the entrepreneurs wants to build small businesses. proper guidance on how to run a business as well as a guide to business policies are provided to the entrepreneurs. the government also provides skill development training under the scheme.
Startup India Eligibility criteria
- The company must be registered as a Private Limited Company or Partnership firm or a Limited Liability Partnership.
- Business should not be incorporated/registered in India before five years
- Turnover must be less than Rs 25 crore per year.
- Business must innovate something new or upgrade existing technology.
- Startup business should not be an outcome of remodelling existing business.
Startup India Action Plan
- Simplification and hand-holding
- Funding support and incentives
- Industry-academia partnership and incubation
The Government is planning to set up a Credit Guarantee Fund (CGF) for encouraging start-up companies with a view to providing funding facilities in the country. The scheme has yet to be made operational.
Incentives being provided to Startups under Startup India initiative are:
- Self-Certification under 6 Labour Laws & 3 Environmental Laws
- Relaxations in Public Procurement Norms
- Faster exit under the Bankruptcy Code
- Rebates on Patent & Trademark filing fees, support from facilitators and expedited examination of the Patent application
- Income Tax exemption
- Exemption from Income Tax on investments received above fair market value
- Funding support under the Fund of Funds for Startups
- Guidance and facilitation support from Startup India Hub