On January 16th, prime minister Narendra Modi announced the launch of a full scale initiative called Startup India to boost startups, investors and getting India one step closer to becoming the world’s largest startup ecosystem.

In an event that brought local and international entrepreneurs and venture capitalists from all over the world under one roof which was also named Startup India, PM Modi announced the launch of the initiative that would help Indian entrepreneur in every aspect from registering their startup with an app within one day and tax exemptions for startups and investors, to a $1.5 billion fund to support startups.

PM Modi also had a trip to silicon valley few months back to explore the opportunities for India’s technology sector, and to empower the technology infrastructure of India. PM Modi met chief executives of many tech giants such as Apple, Google and Facebook. Due to the low cost of smartphones sold in India, many Indians are getting access to internet which also created a golden opportunity for American tech giants to tap further in the massive market we call India.

According to Livemint, a report published by Nasscom, India is currently ranked third among global startup ecosystems, right after US and UK. India’s startup ecosystem has more than 4200 new age companies, Nasscom said.

To further nitro-growth this very fast startup ecosystems, Startup India wants to make India a destination for startups and investors. The initiative announced by PM Modi will include 3 year tax exemptions and compensation on capital gains tax, Fund of Rs.10,000 Cr to back startups and a credit guarantee fund for startups. Modi also announced the launch of Startup India hub, a single point of contact for any interactions with the Indian government. There will be over 500 tinkering labs, 35 incubators, 31 innovation centers, 7 new research parks and 5 new bio clusters on the execution plan. New regulations for registering, patenting and bankruptcy policies has also been announced to reduce the time and cost of these operations, which includes only a 90 days period to close down a startup, 80% reduction in patent filing fee. In addition to that, legal facilitators for startups to file IP with cost borne by the government, and faster processes in registration for startups which includes a dedicated app to register a startup within only one day.

The Startup India initiative is a great example of government support in the startup world. Providing a landscape to easily get funded, relieving entrepreneurs of taxes for the first years, and the costs of registering will surely help and inspire entrepreneurs to start their startups in India. In many countries in Asia and the Middle East including Iran, there are still many obstacles that burn out entrepreneurs. We think The Startup India initiative will set an example in the region on how governments can support their local startup scene and empower their knowledge economy.

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