Startup Policy – A General View
In January 2016, the Government of India launched the Startup India initiative, which has
transformed the way in which the markets, potential entrepreneurs, and investors view
Startups. This transformation included a slew of policy measures intended to promote a Startup culture and allow younger population members to take risk with their ideas and become “job creators” rather than “job seekers.”
India’s demographic dividend requireda suitable channelization of human resources. The Startup Action Plan (SAP) of 2016 proposed to address three key areas for empowering potential Startups: (i) handholding and simplification; (ii) funding support and incentives; and (iii) incubation and industry–academiapartnership.
Emerging as the third-largest Startup ecosystem of the world, India has potential
for enormous growth. There have been several policies at all levels of government, industry,
and academia to promote a Startup culture. However, it is important to examine these
initiatives and determine whether they move beyond the subsidy/tax holiday mindset and workon the root corrections necessary for a robust Startup ecosystem. There are several issues that require consideration from the policy and regulatory perspective for a successful Startup revolution.
