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US ke paas Google hai, China ke paas Alibaba hai, India ke paas Kya hai?

Start-Up India Initiative has been doing the rounds for over a month now and going by the knack of the UPSC to pick-up fancy terms, let’s see if we can deep dive on this topic.


From the ramparts of the historic Red Fort, Prime Minister announced the “Start-Up India, Stand-up India” to encourage entrepreneurship and job creation.

Start-Up India aims to make India the hub for the “Start-Ups”.
However, it is pertinent to discuss the roadblocks to this ambitious plan given that about 80% of the Start-Ups in India fail and also the opportunity it presents if all goes as per the plan.

We may discuss the issue under the following heads:

  1. Regulatory impediments
  2. Risk aversion
  3. Funding Issues
  4. Gestation Period
  5. Need for Start-Ups
  6. Entrepreneurial SkillSet/ Aptitude
  7. Opportunity to absorb the young work force
  8. Role in making India developed by 2022, the PM’s mission

Let’s start then!


Questions, suggestions and comments

  1. Satrajit Maitra

    Gestation period- This is a major issue for the failure of a large number of startups in india. If we look carefully, we’ll find out that majority of the startup founders today are engineers. Inspired by zuckerburg and steve jobs, this new fad of creating startups is taking over the younger generation. This is good but often due to lack of sufficient business knowledge, they really don’t know how to commercialize their products. I think to promote these businesses, the government should set up institutions(both academic and financial) fully dedicated to the development of startups. The role of the academic institutions should be to incorporate business knowledge into our (Indian)”zuckerburgs and steves”. Financial institutions on the other hand should provide them with the necessary capital to start their businesses. One might argue that many colleges are maintaining technology business incubators for promoting startups but still it is present only in a handful of tech colleges. Setting up an institution fully dedicated to the promotion of startups might solve this issue.
    Again, I’m not an expert in this topic. I’m just presenting my view. 🙂

  2. Arun Muradnar

    Regulatory impediment –

    The second area of potential improvement is around government regulations about the founding of businesses.
    The policies in place for entering the Indian business market are complex and outdated. To date, there are over 345 programmes and policies in place for new entrepreneurs.
    While some may seem positive, including programmes that ostensibly incubate new technologies, the truth is this makes it extremely confusing for young entrepreneurs.

    Change can be acquired by “cutting the red tape” preventing new businesses from accessing the market to address some of the dire numbers on the ease of doing business in India.

    One major change is for India to create industrial and technology parks where entrepreneurs can rent or buy ready-to-move-in facilities reducing start-up time.

    By taking steps to create affordable industrial parks, with resources there dedicated to growing tech ideas, India is taking steps towards promoting innovation.

    There is no reason why India cannot be the innovation capital of the world, home to the next Google or Amazon.

    However, the government needs to ensure ideas are given the opportunity to grow into a business. 

    Creating tax reforms, bringing in venture capital, and creating simple policies for new businesses is the way to spark this transformation.

  3. Arun Muradnar

    India is a country with optimistic youth.
    In fact, half of the country’s population is under the age of 25 and more than 65 percent is under 35. It is set to be the youngest country by 2020.
    So,there is primacy to tackle demographic dividend effectively and one good way is to promoting Start ups.

    Different ways to tackle Funding Issues –

    According to government estimates, only 4 percent of 57.7 million small business units in India have access to institutional finance, leaving others to rely on informal lenders.

    Need of Institutional finance –

    To a certain extent, India is taking steps to amend the lack of funding. Modi just announced the launch of MUDRA Bank with $3.2 billion of capital to support micro-financing firms that help smaller business and these are steps in the right direction.

    Expansion of Funding alternates –

    Expanding funding options is viable way and possible through venture capital.
    Government must foster a venture capitalist environment that is on par with other countries, including a 10-year tax hold for venture capital firms who support innovation and new entrepreneurs.

    The government could also offer a full tax deduction for companies that make investments into new companies.

  4. kush mishra

    start up for sure will lift many out of backwardness and provide financial inclusion..

    Indian cities are blessed but rural areas and small towns need more focus..
    who will provide FUNDING ?
    banks mostly urban ares ..
    thanks to small financing companies and pay banks and hope postal pure banking services start fast..yes will provide much needed financial inclusion.. but
    Start Ups need risk capital (equity) i guess because high probability of failure..
    venture funds and angel investors skeptical ..
    $billions of SURPLUS capital flows in financial mkt. if govt could do something (ease of doing business , bankruptcy code , credible financial reporting etc.) to attract then it may work..
    Silcon valley can provide with R&D support , risk capital .

    pls guide me m new ..

    1. Arun Muradnar

      @Kush,You are on track.
      Do right on other areas too and think from all aspects of social,political and economical to drive change in start ups.

      1. Kush Mishra

        Sure Senior

      2. Kush Mishra

        Thanks Senior..

  5. Discuss

    The Discussion is live. We have tried to club you various themes which can be a spin off from this base topic. Take each and write separate comments which can help us elaborate further on those.

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