Write a critical note on the ―Start-up India programme, recently announced by the Prime Minister of India. (150 Words)
With an objective to encourage self-employment and job opportunities, governments time and again encouraged entrepreneurs. We may ponder upon two major questions while we come across the recent call for ‘Start-up India’.
1. Do we need a new programme ?
Not really. Its rather necessary to integrate and improve synergies among the existing scheme of things. Among the major initiatives we have, MUDRA Bank – to provide credit assurance, support especially to dalit entrepreneurs, Atal Innovation Mission (AIM), Self-Employment & Talent Utilisation (SETU) taken up by NITI Aayog to support start-up ecosystem with technical, financial, advisory support. Rather being a stand-alone thing ,’Start-up India’ should be an umbrella mission connecting, spear-heading the above projects.
2. How to enhance the ‘Start-up’ eco system ?
Low cost, reliable credit support is the bedrock for the success of any start-up. Multitude of angel funds, venture capitalists have come up today, but it needs to be furthered by suitable policies to meet the credit demands. Rather than asking the already stressed Indian Banks to provide more credit, suitable modifications to encourage first-time entrepreneurs in the Priority sector lending can be done. Domestic, foreign avenues for credit, technical and management support to be enhanced.
It‘s also imperative to diversify the start-up ecosystem which is crowded around IT, Software area into potential sectors of Agriculture, food processing ,logistics, electronics sectors so that a sustainable growth engine can be delivered.