By TIOL News Service

NEW DELHI, JAN 17, 2016: TO incentivise a Start-up eco-system in the country, the Government yesterday announced a mega package of tax sops, easy credit and easy regulatory environment. While launching the initiative the Prime Minister, Mr Narendra Modi, announced a Rs 10,000 Crore kitty for innovation-driven efforts; Rs 500 Cr credit support system; exemption from capital gain tax and a three-year break from paying income tax on profits.

Besides, it was also announced that the government would provide waiver of 80% of patent fee. In addition, the start-up would not be subjected to labour law inspection for three years. Self-certification of compliance would dominate the eco-system. The PM also promised app-based registration within a day.

The launch was preceded by a day-long workshop on various aspects of entrepreneurship. The Prime Minister visited a virtual exhibition and interacted with Start-up entrepreneurs. Ten outstanding Start-up innovators shared their thoughts and experiences before the Prime Minister delivered his address. He said that when he had launched the Start-up India Initiative on 15th August, the announcement had virtually gone unnoticed, but today it had registered with people.

He said successful start-ups are usually created by those who are driven by an idea, or an urge to solve a problem that people face. He said making money is not the primary objective, but is often a by-product. He said Start-up innovators are often driven by a sense of compassion for others.

The Prime Minister said he wishes to turn the youth of India from job-seekers to job-creators. He said if a Start-up can offer employment to even five people, it would be doing a great service to the nation. He mentioned some areas where youth innovators should focus, including crop wastage, and cyber security.

The Prime Minister unveiled the highlights of the Start-up Action Plan. He said a dedicated Start-up fund worth Rs. 10,000 crore will be created for funding of Start-ups.

He said Start-ups will be exempted from paying income tax on their profit for the first three years. He said the Government is working on a simple exit policy for Start-ups. He also said the Government is working towards fast-tracking of Start-up patent applications.

He announced an eighty percent exemption in patent fee for Start-up businesses, and said a self-certification based compliance system for Start-ups would be introduced for 9 labour and environment laws. He said the Atal Innovation Mission will be launched to give a boost to innovation.