2019 – Posted in: Daily News

Startup India Vision 2024

For: Preliminary & Mains

Topics covered:

About Startup India vision 2024

News Flash

The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed a significant cut in the compliance time to just one hour per month for startups as part of measures to ease regulatory requirements for budding entrepreneurs.

The proposal is part of the Start-up India Vision 2024, prepared by the department to promote the growth of budding entrepreneurs.

Other Proposals

The department has also proposed several other measures such as:

Debt financing
Setting up of 500 new incubators and accelerators
Creating innovation zones in urban local bodies
Deployment of the entire corpus of Rs 10,000 crore fund of funds
Operationalise credit guarantee scheme
Establishment of a seed fund

It has proposed providing work orders and pilot projects from the government, ranking of ministries and central public sector undertakings for their increased engagement with startups and organising a global startup event in the country.

Current situation

Currently, start-ups comply with a plethora of requirements such as GST filings, tax returns and other local laws every month, the official said. Compliance to these processes takes a lot of time and cost.

Startup India

Startup India is the flagship initiative of the government, launched in January 2016, which intends to build a strong ecosystem for the growth of startups, to drive sustainable economic growth and generate employment opportunities. The Startup India action plan provides tax and other incentives.

So far, over 24,000 startups have been recognised by the department. They are eligible for various tax incentives.

Department for Promotion of Industry and Internal Trade

The Department for Promotion of Industry and Internal Trade was established in 1995 and has been reconstituted in the year 2000 with the merger of the Department of Industrial Development. Earlier separate Ministries for Small Scale Industries & Agro and Rural Industries (SSI&A&RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October 1999.

Role and Functions

Formulation and implementation of industrial policy and strategies for industrial development.
Monitoring industrial growth and performance.
Formulation of Foreign Direct Investment (FDI) Policy and promotion, approval and facilitation of FDI.
Encouragement to foreign technology collaborations at the enterprise level and formulating policy parameters for the same.
Administration of Industries (Development & Regulation) Act, 1951
Promoting industrial development of industrially backward areas and the North Eastern Region
Promotion of productivity, quality and technical cooperation.

Source: ET