Nation Current Affairs 16 Jan 2016 Modi announces Rs 10 ...

Modi announces Rs 10,000 crore govt fund for start-ups in India

Published Jan 16, 2016, 7:29 pm IST
Updated Jan 16, 2016, 8:30 pm IST
He also announced that start-ups will be exempt from income tax for first three years.
Prime Minister Narendra Modi (Photo: PTI)
 Prime Minister Narendra Modi (Photo: PTI)

New Delhi: Prime Minister Narendra Modi on Saturday launched the 'Start-Up movement' by announcing a string of initiatives to support the country's start-ups, including a Rs 10,000 crore govt fund and a string of tax and compliance breaks.

Modi said start-ups would not face compliance inspections for three years, and would also benefit from cheaper and faster patent applications, as well as a three year income tax exemption. In addition to that, he also announced a 80% rebate on filing patent applications for start-ups.


Lauding the entrepreneurs for fostering innovation and start-ups, Modi said that the chances of a start-up succeeding depends of the risk taking ability of the entrepreneur. 

Speaking at the launch of Start-up India programme here at Vigyan Bhawan, the Prime Minister said that several people who embark on a business venture leave it halfway.

"I had spoken about Start-up India from the Red Fort and today we are seeing what this is all about... Ideas are many but some leave the idea halfway while others get very involved in the idea," he said.


"But today when those people have become successful, everyone have started thinking about ways to start their own start ups.. People who have achieved this success today, they are not just entrepreneurs but are adventurous as well.. Success of entrepreneurs depends on their ability to take risk," he added.

He said that those planning to venture into a start-up are usually discouraged by the people, and urged that such a mindset needed to change.


"In the beginning when someone would have shared their plan to start a start up, people around them would have discouraged them," he said.

"We need to bring in a psychological change in mindset of youths from that of a job-seeker to that of a job-creator," he added.

Organised by Department of Industrial Policy and Promotion (DIPP), along with other key Indian start-up ecosystem players, the Start-up India, Stand-up India initiative aims to celebrate the country's entrepreneurial spirit, and create a strong ecosystem for fostering innovation and start-ups in India.