Start in India, stay in India: Government to startups
The Union government is planning a series of measures that it hopes will curb startups from fleeing the country, reacting to concerns that companies prefer to domicile overseas after reaching a certain size.
The government will announce broad measures to help startups “Stay in India,” according to two people familiar with the matter, as part of its Startup India conference on January 16.
The government is adopting some proposals from a 36-point list presented to it by software product think tank iSPIRT to reverse the exodus of technology startups. “About 75% of funded technology startups are redomiciling outside India due to regulatory irritants,” iSPIRT said in a post on its website, written by Eko India Financial Services chief executive Abhishek Sinha, after a meeting with the Prime Minister’s Office.
“It was clear that all the officials were determined to make quick progress and were truly concerned by the exodus of tech startups from India,” he said.
Amitabh Kant, secretary in the Department of Industrial Policy and Promotion, did not reply to emails from ET.
“There will likely be announcements on incubators, funding, enablers and benefits for startups,” said a government official who did not want to be identified. Additionally, the guidelines will include proposals to encourage studies in entrepreneurship and allow for exemptions to certain compliances for startups.
As part of the Startup India programme, the Prime Minister’s Office will also select and screen 10 one-minute long videos of select startups to showcase the impact these businesses are making in the country.
About 600 startups were asked to submit 60-seconds videos of their businesses, detailing the work they have done and the impact that their venture has created. Among the startups that were asked to submit their videos are InMobi, Nucleus Software, Tally, Paytm parent One97, QuickHeal, Ola Cabs, LinguaNext, Practo, Wingify and FreshDesk, according to a source.
“The plan is to showcase these videos during national and international events as part of the Startup India and Make in India initiatives,” said a government official familiar with the plans. Three of these videos will also be screened on television channels and in different presentations, showcasing the progress Indian startups have made in their respective fields.