What Is the Startup India Campaign?

. 7 min read
What Is the Startup India Campaign?

Startup India: All you need to know

India faces one of the greatest problems that delay our nation's growth: unemployment. After freedom, the government made numerous attempts to eradicate the issue via various job initiatives. After the LPG's successful introduction, the private sector created many job opportunities, and the issue of unemployment slowed down considerably.

However, given that the rate of population growth is greater than the rate of work openings rise, the solution to this issue of unemployment has yet to be sought. Therefore, in his Independence Day speech in 2016, Shri Narendra Modi suggested a scheme as Startup India for several young Indian entrepreneurs on a path of innovation to solve the problem of jobs.

Startup India is the Government of India's flagship initiative aimed at creating a strong environment that is conducive to start-up development, driving sustainable economic growth, and generating large-scale job opportunities. Via this project, the government aims to encourage start-ups through creativity and design to expand.

After the announcement of the initiative by the Hon'ble Prime Minister, several projects have been conducted to lead to his goal of transforming India into a nation of job creators instead of people looking for work. Those proposals have facilitated the start-up environment, recognising beginning through Startup India, and helping many entrepreneurs to start up their own business in India.

How to Apply for Startup India?

  • Visit the Shram Suvidha Site of the Ministry of Labor and Work.
  • Register at Shram Suvidha Portal and login.
  • After a successful login, click on the link "Is Any of your Establishment a Startup?"
  • Follow the instructions there.

Some Highlights of this Initiative

  • The government will develop funds for 4 years which the board of private practitioners from business companies, academics, and aspiring start-ups will monitor. The fund will participate in the capital of the SEBI financial institution and invest in sectors such as engineering.
  • On April 1, the government will launch a telephone app and website to register start-ups within a week. The website also acts as a central accountable field of approvals, licenses and registration, and for companies applying to engage in the Startup India Awareness Campaign.
  • In order to encourage the production of its property rights, the state, which has been initiated on a trial basis for one year will bear the burden of start-up inventions, at an 80% discount.

Now let's talk about the benefits of the Startup India Campaign.

Three-year tax exemption

In order to encourage growth and help sustain money, start-ups will be given exemption from paying for a period of 3 years. However, an exemption is an available subject to the non-distribution of the dividend by the start-up.

Quicker start-up exits

Following the recent Insolvency and Bankruptcy Bill 2015, which contains provisions on voluntary closures for companies, start-ups can be terminated within 90 days of applying for a quick-track termination. The concept of restricted liability is met in this process.

Student-oriented innovation programs

A core innovation program aimed towards school children aims at generating innovations from five lakh schools, from which one of the best will be selected and presented in Rashtrapati Bhavan at an annual innovation festival.

New Entrepreneurs' Start-Up Prospects

A start-up system is an effective tool for solving the unemployment problem in India. The system will provide founders with multiple opportunities for profitable start-ups. It also realises that businesspeople will also receive sufficient financing for start-ups. Below are the different methods of supplying potential entrepreneurs with the scheme.

Focus on the key company & maintain low costs of compliance

New and small businesses also lack awareness of regulatory formalities and maybe intrusively controlled by regulators. Instead of taking most of the time into compliance with regulatory formalities, the start-up strategy helps aspiring companies to focus more on their core operations. It lowers enforcement costs by encouraging start-ups to authenticate themselves via the start-up method.

Providing appropriate guidance to young firms

Young entrepreneurs lack entrepreneurship expertise, preparation, seed financing, etc. Under this scheme, many start-up incubators are established in many different places where suitable training is offered to entrepreneurs to learn business skills and to different types of recommendations for raising seed capital to set up a start-up venture.

Communication with the government and regulatory authorities

New entrepreneurs wishing to set up can use the Startup App and the Portal to communicate properly with government and other regulatory institutions. This software and platform allow potential entrepreneurs to register a start-up with the appropriate authority to prevent delays in the application process, to file for enforcement, and to receive information on the different clearances or permits or registrations necessary and to apply for various schemes under the start-up programme.

The Start-Ups Obstacles

There is no question that young companies are taking advantage of the different opportunities offered by the start-up system. However, there are still several obstacles ahead of the development of new start-ups.

Challenges for new start-ups

  • Competition
  • Unrealistic Predictions
  • Need for suitable collaborators or co-founders
  • Difficulty in winning the trust of the Consumer
  • Delay in getting funding for seed

Factors for Start-Up Failures

Risk is an important part of any company, and start-ups are not special. The multiple explanations of why several start-ups have struggled are as follows:

  • In today's world, just innovating and releasing a new product is not necessary, but proper promotion is still needed to make it more popular. The new start-ups lack an effective marketing plan to make customers aware of the new product or service. This lack is responsible for struggling to draw more buyers and to make more profit from their selling.
  • Selection of the location of the plant is also an essential factor for the performance of every company. In some cases, however, few start-ups begin without any proper enquiry as to where they will start their business. As a result, after a few days or months, those start-ups face many problems such as lack of raw materials, fuel, distance from the market and customers, etc. These challenges contribute to the demise of some start-ups.
  • After raising seed capital from the related sources, several start-ups began their business operations. Subsequently, those start-ups lack a liquidity status owing to which they were unable to pay wages to their executives or employees. These critical conditions lead to a cash outflow, and in the end, the start-up device collapsed in a couple of days.


Start-ups are built to change the minds of the people of India i.e. to transform the country of job-seekers into a community of job-creators. There is no question that start-ups have proven to be a valuable opportunity to inspire individuals to become self-employed. However, more people have abandoned their jobs to take full advantage of the start-up system, looking for more self-employed earnings.

Few start-ups have been popular and are thriving day after day, but there are still those who are unable to survive against the challenging market and have thus struggled to do so. Start-up is certainly a game-changer, even if the beneficial results of this scheme have not yet been seen. In the long run, this scheme may prove to be more successful in generating jobs.

Also read:
Emerging Startup Culture in India
Startups & Small Companies in India: Eligibility, Registration & more
Beginners guide to make a startup successful
How GST has benefited Small Businesses & Startups?