The first 100 Days – What is on the agenda of the New Government for Start-ups, Entrepreneurs, and Foreign Investments in IT and Manufacturing.

As a new government takes charge in India, the initial 100 days are crucial for setting the tone and direction of its policies and initiatives. This period is often seen as a litmus test for the administration’s commitment to its campaign and promises for the future.

As INDIA stands on the cusp of a new era of entrepreneurship, it will be interesting to witness the government’s support for start-ups and foreign investments. For the start-up ecosystem, entrepreneurs, and foreign investors, the government’s 100-day agenda can significantly influence the business climate and economic landscape.

Let us look at some of the key facts-

• India adds four start-ups every hour, making it the highest globally.
• It is the third-largest start-up ecosystem in the world.
• Female entrepreneurship is on the rise. A virtual incubation program for women entrepreneurs has been implemented.

In this blog, we’ll explore the key elements of the new government’s 100-day agenda, focusing on start-ups, entrepreneurs, and foreign investments in IT and manufacturing.

Setting the Stage: A New Dawn for Start-ups and Entrepreneurs

India has been witnessing a start-up revolution over the past decade, with a burgeoning ecosystem that is now the third largest in the world. The new government’s agenda aims to further catalyze this growth by implementing policies that foster innovation, ease of doing business, and access to capital. Key initiatives in this regard include:

1. Ease of Doing Business

One of the main focuses of the new government is to improve India’s ranking in the Ease of Doing Business index. The government plans to streamline regulatory processes, reduce bureaucratic red tape, and enhance transparency. Specific measures include:

• Simplifying Licensing Procedures: The government aims to introduce a single-window clearance system for start-ups, reducing the time and effort required to obtain necessary licenses and permits.
• Digitization of Compliance Processes: By leveraging technology, the government intends to digitize various compliance processes, making it easier for start-ups to adhere to regulatory requirements.
• Reducing Tax Burden: To encourage entrepreneurship, the government plans to offer tax incentives and reliefs for start-ups, particularly in their formative years.

2.Access to Capital

Access to funding is a crucial factor for the success of start-ups. The government is keen on facilitating this by:

• Expanding the Start-up India Fund: The Start-up India initiative, launched in 2016, has been instrumental in providing financial support to start-ups. The new government plans to expand this fund, making more capital available for early-stage ventures.
• Encouraging Angel and Venture Capital Investments: Policies aimed at attracting more angel investors and venture capitalists to invest in Indian start-ups are on the agenda. This includes offering tax benefits and simplifying investment norms.

Empowering Entrepreneurs: Skill Development and Innovation Hubs

The new government recognizes the importance of nurturing entrepreneurial talent and fostering innovation. To this end, several initiatives are planned:

1.Skill Development Programs

To equip the workforce with the necessary skills, the government plans to launch targeted skill development programs. These programs will focus on:

• Emerging Technologies: Training in areas such as artificial intelligence, machine learning, blockchain, and cybersecurity.
• Entrepreneurial Skills: Providing aspiring entrepreneurs with the knowledge and tools needed to start and grow their businesses.

2.Establishment of Innovation Hubs

Innovation hubs and incubators play a crucial role in supporting start-ups. The government intends to:

Set Up New Incubators: Establish incubators in collaboration with academic institutions and industry leaders across the country. In the words of our Honorable Prime Minister, “Don’t just keep your dreams local, make them global”. The innovation in India is bolstering at an impeccable pace and this is where the Government needs to make rapid strides. Incubation platforms such as the Atal Tinkering Labs have been started in schools to enable young innovators to work on novel ideas. Currently, there are more than 75 lakh students who are actively associated with these labs fostering innovation.

Attracting Foreign Investments: IT and Manufacturing in Focus

Foreign direct investment (FDI) is essential for economic growth and job creation. The new government aims to create a more conducive environment for foreign investments, particularly in the IT and manufacturing sectors.

1. IT Sector: Building a Digital India

India’s IT sector has been a global powerhouse, and the government plans to further strengthen this position by:

• Enhancing IT Infrastructure: Investing in high-speed internet connectivity, data centers, and cloud computing infrastructure.
• Promoting Digital Services: Encouraging the development and adoption of digital services across various industries, including healthcare, education, and finance.
• Cybersecurity Initiatives: Implementing robust cybersecurity measures to protect data and build trust among international investors.

2.Manufacturing Sector: Make in India 2.0

The ‘Make in India’ initiative has been pivotal in boosting the manufacturing sector. The new government plans to build on this success with:

• Special Economic Zones (SEZs): Developing new SEZs and upgrading existing ones to attract foreign manufacturers.
• Incentives for Green Manufacturing: Offering incentives for sustainable and environmentally friendly manufacturing practices.
• Skill Development for Manufacturing: Launching programs to train the workforce in advanced manufacturing technologies and processes.

Statistics and Impact

To gauge the potential impact of these initiatives, it’s essential to look at some key statistics and projections:

• Start-up Ecosystem: As of 2023, India is home to over 50,000 start-ups, with a combined valuation exceeding $450 billion. The new government’s initiatives aim to double the number of start-ups in the next five years.
• FDI Inflows: In 2022, India attracted $83 billion in FDI, with a significant portion going to the IT and manufacturing sectors. The government aims to increase FDI inflows by 20% annually through targeted policies and incentives.
• Job Creation: The IT sector alone employs over 4 million professionals, and the manufacturing sector provides jobs to around 27 million people. The new policies are expected to create an additional 5 million jobs in these sectors over the next five years.

Conclusion: A Roadmap for Growth and Prosperity

The new government’s 100-day agenda is ambitious and comprehensive, focusing on creating a vibrant ecosystem for start-ups, empowering entrepreneurs, and attracting foreign investments in IT and manufacturing. By implementing these initiatives, the government aims to foster innovation, drive economic growth, and create millions of new jobs. As these policies take shape, India is poised to solidify its position as a global hub for entrepreneurship and investment.

In summary, the new government’s agenda sets a promising course for India’s future, laying the groundwork for sustained growth and prosperity. As stakeholders in the start-up ecosystem, entrepreneurs, and foreign investors keenly watch the developments, the next 100 days will be crucial in determining the trajectory of India’s economic landscape.