Prime Minister Narendra Modi today at 7 pm Indian Standard Time will address the nation and virtually launch Madhya Pradesh's Startup Policy and Implementation Plan 2022. This is an exciting moment for India’s aspiring entrepreneurs as Prime Minister Modi will also be interacting with the startup community. The Nodal Agency for Madhya Pradesh Startup Policy is the Ministry of Micro, Small and Medium Enterprises, Government of India.
In a tweet Prime Minister Modi commended Madhya Pradesh, "At 7 PM today I will be launching the Madhya Pradesh Startup Policy and interacting with those from the Startup sector. I commend the MP Government for this effort to make the state a hub for enterprise. I urge all those from this ecosystem to join the programme this evening.”
The event will be held at the Brilliant Convention Centre in Indore in the presence of Madhya Pradesh Chief Minister Shivraj Singh Chouhan.
This programme intends to promote startups and encourage budding entrepreneurs in Madhya Pradesh.
This startup policy has been specially developed to strengthen and bring to reality the entrepreneurial ideas of the youth of the state.
P. Narhari, Secretary, Micro, Small and Medium Enterprises Department, Government of Madhya Pradesh, said, "The new Startup Policy is quite different from the old policy. One important feature being added in the MP Startup Policy 2022 is the concept of 'MP Startup Centre'. Earlier, only one policy was being implemented by the department, but now this will be implemented in tandem with the MP Startup Centre. The startup centre will have a dedicated office, a head or mentor for every startup and experts from the relevant field, which will help the startup community."
Eyeing the same direction, the Sagar Smart City Incubation Centre, SPARK has made rapid strides towards promoting Madhya Pradesh Startup Policy 2022. A series of policy awareness boot camps and workshops have been organised in various educational institutions, businesses, and startup communities, including Government ITI College, Edina Institute of Science.
As of now about 18 startups are being incubated under Smart City in the Gwalior district.
The Madhya Pradesh government has selected a number of ideas from about 50 startups in the region for which a special workshop will be organized on 11 May 2022. This would be done to help understand the needs of these needs and to ensure that these ideas come to reality under the new start-up policy.
Evolution Of Startup India
On 15 August 2015, as part of Honorable Prime Minister Shri Narendra Modi’s Independence Day speech from the Red Fort, a new vision for the Indian economy was announced. A vision that aimed to tap the entrepreneurial potential of the people of India. A vision that enabled the talent of India to dream of ideas, put them in action, and convert them into game changing ventures. In five months, putting words into action, on 16 January 2016, the Government launched the ‘Startup India’ program with a stated objective to build a strong ecosystem for nurturing innovation and startups in the country that would drive sustainable economic growth and generate large scale employment opportunities.
The Action Plan Startup India Policy
In order to imbibe all these objectives in less than one umbrella policy framework for the entire nation, while addressing all the aspects of the startup ecosystem, a Startup India Action Plan1 was announced on 16 January 2016. It comprised 19 action items spanning across three key areas of ‘simplification and handholding’, ‘funding support and incentives’, and ‘industry-academia partnerships and incubation’. Under the provisions of this plan, startups were entitled to a number of benefits such as tax incentives including capital gains tax exemption, Governments’ assistance in funding, prioritisation of startups in public procurement, etc. The benefits above included a provision for startups to avail assistance of a self-certification compliance system with respect to labour and environmental laws and exemption from any inspections of their place of business. The action plan also envisaged a common platform for stakeholders to interact, facilitation for funding support, and partnership with academia and private sector entities. Some other key benefits that the Action Plan included were entitlement to an 80% rebate in patent registration fees as well as a 50% rebate in trademark filing. Startups could also benefit from faster exit norms and free of cost assistance provided by patent and trademark facilitators in filing for Intellectual Property Rights (IPRs).
Key Pillars Of Support For Startups: Under The Startup India Initiative
1.Simplification and Handholding - Easier compliance, easier exit process for failed startups, legal support, fast tracking of patent applications and a website to reduce information asymmetry.
2.Funding and Incentives - Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to infuse more capital into the startup ecosystem and a credit guarantee scheme.
3.Incubation and Industry-Academia Partnerships - Creation of numerous incubators and innovation labs, events, competitions and grants.
Accelerating India’s Startup Movement
1.Simplification and handholding
2.Compliance regime based on self-certification
3.Startup India Hub
4.Rolling out of mobile app and portal
5.Legal support and fast tracking patent examination at lower costs
6.Relaxed norms of public procurement for startups
7.Faster exit for startups
1.Industry-Academia Partnership And Incubation
2.Organising startup fests for showcasing innovation and providing a collaboration platform
3.Launch of Atal Innovation Mission (AIM) with Self Employment and Talent Utilization (SETU) programme
4.Harnessing private sector expertise for incubator setup
5.Building innovation centres at national institutes
6.Setting up of seven new research parks modelled on the research park setup at IIT Madras
7.Promoting startups in the biotechnology sector
8.Launching of innovation focused programmes for students
9.Annual incubator grand challenge
1.Funding Support And Incentives
2.Provision of funding support through a Fund of Funds with a corpus of Rs 10,000 crore
3.Credit guarantee fund for startups
4.Tax exemption on capital gains
5.Tax exemption to startups for three years
6.Tax exemption on investments above fair market value
Startup India The Catalyst of Change
With an aim to operationalise its action plan towards a ‘pro-entrepreneurship’ attitude, Startup India has created a three pronged strategy
While the first two are aimed at providing a one-stop shop for startups, including availing financial incentives and other benefits, the objective of the third point is to be achieved through outreach and awareness programs by taking the message beyond metros to tier 2 and 3 cities and engaging regional governments in overall transformation. The Action Plan under the Startup India Initiative was primarily focused on addressing the most vital issues faced by entrepreneurs during various stages of their businesses and developing the Indian startup ecosystem to one of the biggest startup ecosystems globally. Since the launch of Startup India and subsequent implementation of various initiatives, substantial improvement has been created in the overall startup environment. Moreover, the Ease of Doing Business index for India has made a significant leap from 130 in 2016 to 63 in 20202, further encouraging the proliferation of startups in India.
Startup India Recognition
Startup India was set up to provide handholding support to startup ventures and streamline their incentive disbursals under the Department for Promotion of Industry and Internal Trade (DPIIT). The idea is not only to provide an enabling environment for startups to flourish but also to lure investments. The initiative commenced in April 2016, with the operationalisation of the Startup India Hub, the online portal providing multiple offerings under Startup India and connecting aspirants to other vital ecosystem builders. Also, the scope of definition was broadened to include scalable business models with high potential of employment generation or wealth creation. Additionally, the requirement of letter of recommendation from an incubator/industry association was also removed to avail benefits offered under the initiative. The launch of the recognition initiative under Startup India provided stakeholders a 100% online platform. On this platform, all the applications are reviewed, and the certificates of recognition are issued to eligible and complete applications within 48-72 working hours. The DPIIT recognition process provided a boost to the overall ecosystem and enabled startups to access various support initiatives under Startup India. Currently, there is at least one recognised startup in each of the States and UTs. The startups recognised until February 2020 span across 54 industrial sectors with a maximum number of startups registered under IT services and Healthcare and Life sciences followed by education sector.
At Least 1 Recognised Startup In Each State And Union Territory
As of now the programme covers 590+ districts, 12 States and UTs (Maharashtra, Karnataka, Delhi, Uttar Pradesh, Haryana, Gujarat, Telangana, Tamil Nadu, Kerala, Rajasthan, West Bengal, Madhya Pradesh) have over 1,000 recognised startups each. Top 10 highlighted sectors in terms of number of startups are IT services healthcare and life sciences education professional and commercial services food and beverages agriculture finance technology hardware finance technology, construction, green technology.
Madhya Pradesh Startup Policy 2022 Incentives For Startups
Eligibility
To avail benefits under this policy, the startups need to comply with all following conditions:
Sustenance Allowance
INR 10,000 per month for a period of 1 year or till start-up reaches post-traction period (whichever is less), will be released as sustenance allowance after 3 months of joining a partner incubator.
Lease Rental Subsidy
Margin Money/Interest Subsidy
The following shall be provided on the capital expenditure of the project.
Patent Registration/Quality Certification
Quality Certification: maximum INR 3 lakhs per startup up to 2 certifications
Startup Marketing Assistance
One-time assistance of maximum INR 10 lakhs for introducing an innovative product to the market upon meeting any of the below conditions:
Startup has got total equity financing by SEBI registered AIF category I & II Fund or Angel Networks of atleast INR 25 Lakhs; or (Sanction letter of funding/ grant to the entity by Government of India based on:
Funding/Grant received by GoI maximum allowance
The startup has got a revenue run rate of INR 5 lakh per month over the last six months at least.
Participation In National/International Events Of Repute
