21/03/2016 11:31 AM IST | Updated 15/07/2016 8:26 AM IST

Harnessing Entrepreneurship And Innovation To Power India's Growth

Search for opportunities. Business illustration
linetic via Getty Images
Search for opportunities. Business illustration

In addition to being the world's fastest growing economy, India also offers the fourth largest ecosystem for start-ups, driven by an extremely young, diverse and inclusive entrepreneurial landscape.

I firmly believe that India is going to be revolutionized by the DICE (Design, Innovation, Creativity, Enterprise)-led entrepreneurial economy. Design is not only about aesthetics and ergonomics, but also about content and process for business. India needs to create innovation districts which can be a fulcrum to diverse creative industries to trigger 'Start Up India'. Leading Indian education institutions and such curated innovation ecosystems need to play proactive roles as incubators and accelerators in job creation and economic growth.

India needs to create innovation districts which can be a fulcrum to diverse creative industries to trigger 'Start Up India'.

The Finance Minister in his Union Budget 2016-17 has highlighted the following series of policy initiatives and schemes aimed at boosting the growth of MSMEs (micro, small and medium enterprises) and start-ups in India:

Improving the ease of doing business

• 1-day incorporation for a company via a mobile app, reduced from the current 15-30 days -- an important proposal for aspiring entrepreneurs.

Increasing the profitability of start-ups

• 100% deduction of taxes on profits for three out of five years for start-ups from April 2016 to March 2019, with certain riders. Further, a 10% tax on income from worldwide exploitation of patents developed and registered in India will encourage innovation in start-ups.

• Reduction of holding period for Long Term Capital Gains from three years to two years.

Strengthening entrepreneurial skills

• Setting up of 1,500 multi-skill training institutes across India under the Pradhan Mantri Kaushal Vikas Yojna will considerably improve access to training for budding entrepreneurs, even in Tier III and IV towns.

• Under the Skill India Mission, entrepreneurship education and training will be provided in 2,200 colleges, 300 schools, 500 ITIs and 50 vocational institutes through massive online courses. Aspiring entrepreneurs, particularly from remote regions, will become connected to mentors and credit providers.

Economic empowerment for all, including women and SC/ST entrepreneurs

• Providing better access to capital for bottom-of-the-pyramid entrepreneurs by increasing the target of MUDRA Scheme to ₹1.8 lakh crores from ₹1 lakh crores.

• Allocation of ₹500 crores towards SC, ST and women entrepreneurs under the 'Stand Up India' scheme.

• Setting up a national hub under the Ministry of MSME, in partnership with industry associations, for providing professional support and training to 2.5 lakh SCs, STs as well as women entrepreneurs.

With the aim to provide end-to-end support to young and budding entrepreneurs as well as create businesses that provide high employment and profit for investors, the government must also provide a well-defined exit framework, including simpler listing norms for investors to cash in their initial investment and plough it back into other start-ups.

Emphasis on other flagship programs like Digital India will also provide a fillip to the start-up movement in the country, which has had such a vibrant beginning.

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