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Image Credit: makeinindia.com
The Startup India Action Plan (the “Plan”) though not exactly a game changer, has been one of the flagship initiatives of the government of India, towards due recognition of the start up ecosystem and accelerating its growth momentum, by providing several benefits, as discussed in our previous article on “Startup India Policy – Update One”. For the first-time a need was felt to specifically enact plans and initiatives to encourage the technology, design and innovation driven ecosystem and to nurture innovation and startups (defined for the first time in the Plan). With the Plan getting an year old, we evaluate in this article the way the Plan has unfolded and the progress that has been made thus far.
To recapitulate briefly, a Startup has been defined as a private limited company or a partnership firm or an LLP, incorporated or registered in India not earlier than five years, with annual turnover not exceeding INR 25 crores in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. Entities formed by splitting up, or reconstruction, of a business already in existence have been specifically stated to be not eligible for recognition under the Plan.
