India has a startup policy that encourages innovation as well as entrepreneurship development. The Indian government believes that startups have the potential to create new employment opportunities and become an important part of the economy.
In terms of specific policy initiatives, the Indian government has launched the Startup India Action Plan which focuses on providing technological, regulatory and financial support to startups. The policy has several components such as:
Tax exemptions: Startups are eligible for income tax exemption of up to 3 years (provided they meet certain conditions) as well as tax deductions on investments made by investors in their company (up to INR 25 lakhs).
Access to funds: There are a number of government-backed venture capital funds that startups can access, as well as several other startup-focused funds operated by banks and other private investors.
Simplified regulations: The Indian government is dedicated to easing the regulatory burden on startups by simplifying the process for setting up companies, including the launching of an online platform for startups to register for self-certification.
Mentorship and incubation: There are many incubators and accelerators (both public and private) that offer various resources such as mentorship, funding, networking, etc. to help startups grow and succeed.
In addition to the aforementioned policy initiatives, the government has also launched several programmes and initiatives such as the Atal Innovation Mission, the National Entrepreneurship Award, the Education and Research Network, the Make in India programme, the Digital India initiative and many more. These programmes are aimed at promoting entrepreneurship, job creation and providing support to innovators.
