The Department for Promotion of Industry and Internal Trade (DPIIT) announced, on Thursday, a new set of measures to provide a platform for startups in India to achieve growth. The measures were released in a document named Startup India Vision 2024.
According to Financial Express, a PTI report mentioned that the DPIIT has plans to aid the launch of 50,000 startups by the year 2024, thereby creating over 20 lakh jobs – direct and indirect.
The DPIIT has suggested that Rs.10,000 crore Fund of Funds should be allocated in addition to providing CSR funds to incubators. The document also mentioned proposals to create an India Startup Fund of Rs.1,000 crore solely for technology startups and seed funding of another Rs.1,000 crore for startups in general.
In a relief to many startup investors, certain new regulations have been proposed for startup tax laws. Some of them are exemption of angel tax from alternative investment funds, launching of a regulatory body for fintech products, tax benefits for investment in a startup, reduction in rates for Goods and Services tax, and ESOPs tax exemption.
In terms of infrastructure, the department has also proposed to launch 100 innovation zones in urban areas, and 500 new incubators and accelerators. Also, plans have been proposed to make seven research parks operational so that it can facilitate the growth of startups.
The Startup India Vision 2024 document also mentions the need for banks to create a single window system that will monitor the disbursals of loans towards startups.
All the proposals will be presented once the new government is set up this year.
Source: Financial Express