India is world’s youngest startup nation

By : |July 26, 2016 0

With three to four startups emerging every day, India has secured the third spot after US and Britain in terms of the number of start-ups, making us the world’s youngest start-up nation with 72 percent founders less than 35 years of age.

Addressing the “Start-up India states’ conference”, Commerce and Industry Minister Nirmala Sitharaman said “Start-ups are the next big economic force in India. Close to 4,400 technology startups exist in India and the number is expected to reach over 12,000 by 2020. India is the world’s youngest start-up nation with 72 percent founders less than 35 years.”

CIOL India is world's youngest startup nation

She further added, “Government is committed to making Start-up India initiative a scalable reality and to provide an environment for our start-ups to thrive in. Through the initiative, we want to ensure that the momentum is accelerated. We are determined to make it a start-up revolution.”

“The government will facilitate to ensure that world’s best start-up ecosystem is in India”.

Sitharaman also spoke about other initiatives and programs operationalized under their government to promote startup ecosystem. The government has commenced the Start-up India Hub on April 1, 2016, to resolve queries and to provide hand-holding support to start-ups. Since its inception, the hub has rendered more than 13,500 queries received from start-ups through telephone, email, and Twitter.

With the Finance Act, 2016, start-ups will get income tax exemption for 3 years in a block of 5 years, only if they are incorporated between April 1, 2016, and March 31, 2019.

Another benefit includes tax exemption on investments above fair market value for investments made in start-ups. With an eligibility certificate from the inter-ministerial board of Department of Industrial Policy and Promotion (DIPP), startups can avail these benefits.

A ‘fund of funds’ of Rs. 10,000 crores for start-ups has been established which is managed by Small Industries Development Bank of India (SIDBI). Sitharaman said, “This fund will act as an enabler to attract private capital in the form of equity, quasi-equity, soft loans and other risk capital for start-ups.”

The fund will invest in SEBI registered alternative investment funds (AIFs) which, in turn, will invest in start-ups.

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