Finance Minister Arun Jaitley in his Budget speech announced the setting up of a Rs 10,000 crore fund to boost capital flow to startups and small and medium enterprises (SMEs) in the country.
During his Budget speech in the Parliament, Jaitley acknowledged that funding for such companies is a problem.
Moreover, there will be a framework for bankruptcy, which will be worked out. This will make it easier for start-ups to fold up even if an idea doesn't work out.
Currently, this is a major hassle for upcoming companies. The UPA had also announced a $100 billion fund to boost innovation -- a venture that couldn't take off during its tenure.
Apart from the Rs.10,000 crore fund, he has also allocated Rs.100 crore for a start-up village for village youth. Jaitley has also liberally allocated Rs.500 crore towards setting up a pan India technology mission in the country, which will address the "digital divide" in the country. The mission will enable broadband connectivity to the villages, boost IT enabled services, bring transparency in government operations and work towards increased indigenous production. The National rural Internet Technology Mission will address these issues along with the project e-Kranti, that will help digitise the government.
There are 200 companies which contribute 80% of the industry's revenues, but another 15,000 that account for the rest 20%. A significant portion of the 15,000 are highly entrepreneurial and require the right push to become the enterprises of the future.
1 comment:
Start-ups are the trendy career path at the moment. Start-up land is hot property and everyone wants to build their own 50 storey skyscraper. Startups are creating jobs a lot of jobs Myhoardings is india's leading startup
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