Bangalore, January 17 2016: India's startup sector ( and some key global players) have reacted with enthusiasm to the new startup action plan and government policy, announced last night by Prime Minister Narendra Modi.
Softening of regulatory mechanisms seen to stifle innovation and a slate of special incentives, drew applause from startup pioneers nationwide -- though some indicated ( politely) that they would wait and watch to see if words translate into action.
We bring you reactions we received in the early hours after the announcement:
Online Professional Education startup, Edureka: "We are thrilled with the announcements made in New Delhi today by Prime Minister Narendra Modi. We are confident that the new initiates will bring about a collective change in the mindsets of people and the community as a whole. Startups have always been associated with risks around career stability and financial growth.
Most startups look at mobile apps as their prime vehicle to reach their customers. Providing us a mobile app to hasten our own business is the best possible tribute we can get from the Government. There is no doubt that a huge number of startups will queue up to develop that app for you.
Shashank ND, Founder & CEO, Practo : Today is an important day for startups in India. I am happy to see the government engage with the community and to really look into the issues that are hindering the ecosystem from growing even faster than it is. With the Start Up Action plan, we will see more young entrepreneurs take the risk of starting their own venture and building innovative solutions to solve meaningful problems for Indian as well as for the global audience. I think the Insolvency and Bankruptcy Bill that will allow startups to exit faster, within 90 days is a great step towards encouraging more people to take the plunge of starting a new venture, without the fear of failure.
Prashant Rai, founder and CEO, OneTimeJobs.com: We are in sync with the prime minister's announcement on StartUp India. We truly appreciate all the initiatives that the government will be taking to support startups. On these initiatives, Government will be as successful as it was with the 100 smart cities concept. However, the concern of taxation on VC funding has not been spoken about, which still remains a roadblock.
Dinesh Agarwal, Founder and CEO, IndiaMart.Com: I wholeheartedly welcome Prime minister's action plan at the startup India standup India missionThese policies should be applicable to all startups including MSMEs in manufacturing, trading, retailing and services sectorIn sync with Modi, I believe that the Startup definition must include every new business generating employment in any sector
Sujayath Ali, CEO & Co-founder, Voonik : It's a great start by our PM. It's exciting to see that our Government is looking to remove obstacles and facilitate startup ecosystem. No inspections, ease of shutting down, and no capital gains are significant. Still looking for clarifications on items such as removal of angel tax, what constitutes e-commerce vs marketplace and forex reporting.
Manoj Agawaral, Co-founder, Giftxoxo: Startup India is a great initiative. Brings all stakeholders under a single platform. It would be good to have such regular events and bring the key points of discussions into real execution. It ll really motivate existing entrepreneurs and inspire many more potentials. Hope to see some quick long term actions for startup growth in India
Sean Blagsvedt, Co-Founder & CEO, Babajob.com:We are incredibly excited about the Startup India Action Plan announcement, which literally has dozens of policy innovations to foster more creative startups. At Babajob, we can’t wait to help connect India’s aspiring millions with jobs at the next generation of startups; I only wish the plan was in place when we started.”
Debadutta Upadhaya, Co Founder, Timesaverz: This is a encouraging initiative to take India's startup ecosystem to the a next level. A business friendly tax environment for would be promising for creating an organised market from a highly unorganized market
Raghav Chandra, Co founder, Urbanclap: This initiative of PM Modi is the right step in making the environment friendlier for entrepreneurs and thus encouraging them to start up. We will wait for the fine print to understand exactly what the next steps will be. However, I can only say that outcome will be in the positive direction and we are very excited!
Shaifali Agarwal Holani, Founder and CEO, EasyFix: What an initiative and a great day for India. Most populated India has sharpest brains of all times and this initiative will give a platform to many enthusiastic but under confident talents to come out of their ordeal. Encouraging privatisation will speed the pace at which India is developing and we will become a developed country soon."
Anurag Jain, Co-founder & COO, Girnar Soft: It is exciting that the government is standing up and noticing the startup revolution in India and calling on the youth to be job makers and not job seekers. From a policy standpoint, there are some welcome changes. Relaxation on Capital Gains for funds is the biggest, including exemption from capital gains when one has the ability to raise capital over Fair Market Value. However the fine prints are yet to be seen on this. Ease of starting a company, regulatory compliances and self certifications will ensure that startups can run hassle free without government interference. As part of Ease of Doing Business, the single window mechanism, can help new entrepreneurs in smooth functioning of business.
Read our main news story detailing the new startup policy here
Vijay KG, founder, Luxepolis: Income and Capital Gains Tax exemptions game changers. One can expect India giving Silicon Valley run for its money over the next three decades. Today's announcements are enormously positive in potentially making India (replacing USA) as the country that leads and drives future innovation in the world
Radhika Aggarwal, Co-founder & CBO, Shopclues: The government has acted like a disruptive start up. The policies around cleaning the license raj will be a huge booster for Startup community while both setting up and dissolving a company. Other initiatives such as tax benefits, easy IPR regulations, and government academia will go a long way in making India’s start up ecosystem super successful.
Akshay Verma, Co-founder & Director, Fitpass: Startup India has provided strong encouragement and respectability to first generation entrepreneurs apart from smoothening processes. If the promises made are fulfilled timely, there is no doubt that India will be the global hotspot for job creators and problem solvers.
Prafulla Mathur, Founder and CEO, WudStay: welcoming the Start-up India Initiative: The initiative launched by PM Modi today will surely set an enabling and conducive environment for startups in India. We are overwhelmed to have such support from the Government which will certainly make a big boom in the Indian startup ecosystem to fuel the economy and create new age jobs. The policies announced today at the program, open doors for massive opportunities, boost further investments and innovations. We look forward to implementation of Tax framework for startups and how regulations are reduced to help smoother operations
Rajiv Srivatsa, Founder, Chief Operating Officer, Urban Ladder: It is encouraging to see the kind of attention the startup community is getting from the central government. It re-instills faith in the path many of us (entrepreneurs) have chosen. I'm confident the government will play a significant role to support the ecosystem, and help us build truly world class 'Made in India' companies. With introduction of self certification compliance and easier patent laws, entrepreneurs will be able to spend more mind-space on innovation. The move to make exits simpler is also encouraging and will encourage more risk taking and hence, disruption
Sony Joy, Founder and CEO of Chillr: It is great to see the nation finally giving the much needed attention to the startup space. Government should make the necessary changes in the company laws to make incorporating startups, fund raising, issuing sweat equity etc. a lot more easier so that entrepreneurs can focus on running the business than spending time with consultants and lawyers. Reliable, fast Internet and ubiquitous mobile connectivity are the basic necessity for our startups to build compelling value propositions for the global audience. It is imperative that government helps & enforces telecom operators and ISPs to provide quality services.
Kulpreet Kaur, Co-founder, Shop Pirate Coupons: This was for the first time a government in India has launched an exclusive program for startups and the expectations were really high. The vision to set up 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIEPRs) will help India to develop local brands that can create global footprints. In the past India has been a market for technological innovation created overseas. The time has come now that the Indians create technological products at home that can be marketed globally. We have the skills and need a platform. Start-Up India is going to go a long way in filling up this void.
Mohit Mittal, founder and CEO of Voodoo: "Exposure to a facility like the research park facilitated many a budding entrepreneurs and friends with funding and guidance. Scaling it to seven other institutes would definitely help the budding startup enthusiasts right from their first day in college, and that's really paramount to their future success. One has to start early and fail early to really learn the intricacies of scaling a company, college students should welcome this move with open arms."
LD Sharma,Group Vice Chairman of Shoogloo: “Liberal economic policies relating to taxes and foreign investment proposals will redefine the dynamics of startup India. PM Modi’s initiative will not just ascertain stability but also long term planning for sustainable startup India this year and beyond. We at Shoogloo believe in delivering pure performance and see the same being initiated by our PM for the nation.”