Last month, the first conference on Startup India, where the Prime Minister addressed a host of startup entrepreneurs, was held with much fanfare. There have been a number of points in the action plan which, once implemented, will surely boost such ventures and generate employment and wealth. Among the more significant ones are a compliance regime based on self-certification, tax benefits and simplification of the startup process and exit. There are others which involve government funds, incubators and the likes but to my mind, once the regulatory and tax environment is made startup friendly, everything else will automatically fall into place. The success of Silicon Valley is largely because of non-interference by the Government rather than the other way round.
One thing that I would like to have seen, was some simplified process of closing a failed business. All startups are not going to be successful and if there is no easy exit route for a failed startup, it will really take a brave entrepreneur to take the plunge. This will effectively nullify the benefits and incentives provided to start a new venture. I am hopeful that this will also be addressed in the action plan.
Over the past few years, we’ve seen a lot of successful startups either set up office outside India or move their offices outside India, simply because they saw a commercial and operational advantage of doing so. Once the action plan is implemented, there is no reason for this to happen. Let’s hope this happens in the very near future!”