‘We are creating an ecosystem to nurture startups,’ said Amitabh Kant, Secretary, Department of Industrial Policy and Promotion (DIPP) at the Session ‘Create in India for the World’ at the ongoing Make in India Week organized by the Confederation of Indian Industry (CII) in partnership with the DIPP and the Government of Maharashtra in Mumbai.
Extolling the key achievements of the Make in India initiative, Kant said, ‘It has brought ease of doing business, opened the FDI regime and taken manufacturing centre-stage. I think the key point is that a lot has been done in the last 18-19 months. The Indian economy has been opened up. Vast sectors of our FDI regime have been opened up. We have made India an easier place to do business in.’ He said that this is one of the largest multi-sectoral exhibitions that there has been. Indian manufacturing is on full display and people can see what has been achieved.
He further mentioned that India has been able to improve its position in ease of doing business by 12 ranks, competitive spirit has been unleashed among states by the ranking process and India, from being one of the most closed economies, is now one of the most open economies of the world. FDI is up by 48% as compared to a global decline of 16%.
The DIPP Secretary, who is considered an evangelist for young startups in the country, said, ‘With the Start Up India initiative launched by the Prime Minister NarendraModi we are confident of breaking the clutter, cutting through the red tape and ensuring the smooth progress of the startup movement.’
The plan is to nurture startups in India by creating an ecosystem favorable to them. Exemption on tax on capital gains and exemption on income tax has been allowed to startups. All startups incorporated in India not prior to five years as per the definition of startup and starting the operations before 2019 can get this benefit for three years highlighted Kant.
Talking to a well-attended session of young and enterprising youngsters who have innovated, designed and thought out of the box to make a difference in the lives of millions of Indians, Kant said, ‘What our startups need is the right ecosystem. What is required is quality infrastructure, not incentives. The government is focused on creating the best possible infrastructure on the ground. I think plenty is to be done on the ease of doing business. We have to sustain this whole effort. We have to keep making India an easy and simple place to do business. We have to keep encouraging and supporting startups with vigor and energy. We have to push innovation and design. We also have to keep opening up India’s economy more and more.’
He said that the Startup App is a crucial element of the entire ecosystem. The government focus stands on cutting red tape and lending support to startups through this app. Five states have already rolled out their policy to enable startups.
Addressing a panel discussion on Design Thinking in Manufacturing, ArvindLakshmikumar of Tonbo, a startup company that designs, builds and deploys advanced imaging and sensor systems for the defense sector, said, ‘We need to push our boundaries. It is the ability to assimilate information from different services and present them with global standards that is required today. Our goods should be bought not because of empathy for a startup or for being Indian but for their world class quality.’
ManasijGanguli, Founder & CEO Threadsol said, ‘Every startup is creating a platform which improves logistics, transportation, lifestyle and increases efficiency – thereby creating an entire ecosystem. What we need is more trust from the market and the government. In the employment generation versus efficiency scale, startups should be ranked only on the former, economics will catch up finally.’
