Recently, Indian government launched a scheme called SAMRIDH to
accelerate startups. Through this scheme, government will support startups and entrepreneurs in their initial phase, where they face most challenges. “SAMRIDH will create a conductive platform for Indian software product startups to enhance their products and secure investments for scaling their business”, says Ashwini Vaishnaw, Union Minister of MeitY (Ministry of Electronics and Information Technology). This programme is being implemented by MeitY Start-up Hub (MSH).
SAMRIDH scheme has the potential to not only provide funding support to startups, but also to help startups in bringing skill sets together which will help them to become successful in the near future.
Recently, Prime Minister Narendra Modi in his Independence Day speech said that startups are the new types of wealth creators in our country. The government of India is relentlessly working towards making the startups and startup ecosystem of the country best in the world. The startup sector of India is still a hot market even after the resurgence of pandemic in the country.
Benefits of SAMRIDH Scheme for Indian Startups
It is a well-known fact that technology can play a huge role in accelerating every aspect of life. With the help of these startups, many needs of human life can be accomplished in the coming future. The SAMRIDH scheme will focus on accelerating 300 start-ups by providing customer connect, investor connect, and international expansion opportunities in the next three years. Also, there will be an investment of up to 40 lakh rupees to these startups, based on their current valuation and growth stage which will be provided through selected accelerators. It will also facilitate an equal matching investment by the accelerator or investor.
Employment Benefits
Technology when combined in a right way with the energy of youngsters is a great source of energy for inclusive development. SAMRIDH scheme has the potential to achieve the vision of providing employment in traditional as well as new age industries.
Majority of India’s population still lives in villages and remote areas. These people require a lot of initiatives, new services, and new products that will induce a better life for the marginalized sections of society. If India fully leverages the potential of startups and schemes such as SAMRIDH, it will help in realizing the vision of better life and inclusive development across the country.
Benefits in Finances
Mainly it is seen that startups are based on patents which means that they produce and provide unique goods and services. So, in order to register their patents, startup companies have to incur a heavy amount of money which is usually known as Patent Cost. Under the SAMRIDH scheme, the government will also provide some rebate on the patent cost and the entire process that goes behind the registration of patent will be faster for these startups. Also, the government pays the fees of the facilitator to obtain these patents for the startups.
SAMRIDH scheme will further accelerate the growth of the startup ecosystem in India. The startup ecosystem of India has witnessed the emergence of 63 unicorns, in the recent years. Generally, unicorn term is used for the private startups that are valued at over $1 billion. With a total valuation of $168 billion, the Indian startup ecosystem is now the third largest unicorn hub.
Benefits in Income Tax
Benefits of tax relaxation are also given to startups. The government exempts their 3 years income tax post their year of incorporation. These startups will also get benefit of tax exemption on capital gains in case they invest money in specified funds. This initiative simplifies the work for the new entrants and motivates them.
Benefits in Registration
It is a well-known fact that the incorporation and registration process of the business are very difficult and time taking as the files of applicant startup company goes from one department to other for the approval. This whole process consumes a lot of time of the startup owner. But under this scheme, there will be a single application to facilitate the registration of startups. In this way lot of crucial time can be saved.
Also, there is a huge networking opportunity provided by government for the startups to meet with various stakeholders annually. The government will provide opportunity and conduct 2 startups fests on domestic as well as international level every year. This scheme will also conduct Intellectual property awareness workshops and awareness for the startups to guide them in the right direction.
The Way Forward
Experts believe that government can help sustain momentum in these spaces by mentoring the startups which will ultimately drive economic growth and create large scale employment opportunities in the country. SAMRIDH will create a conducive platform for Indian startups to enhance their products and secure investments for scaling their business. India is the second largest populated nation in the world. So, if a product or service manages to reach even quarter of the total population, nobody can stop India from becoming a global icon.
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