Schemes for startups must be extended to MSMEs
As the government has unveiled its action plan for startups to provide them financial and other assistance, an industry body has said these benefits must be passed on to the existing units defined as micro small and medium enterprises (MSMEs) to ensure their growth. Prime Minister Narendra Modi on Saturday launched the 19-point action plan after a power-packed ‘Starup India’ workshop in New Delhi which was attended by CEOs of big multinational companies, venture capitalists, and a large number of startup entrepreneurs. As per the new action plan, the government will allocate Rs.10,000 fund for startups, give them tax waiver for three years, 80% rebate in patent fee and several other benefits. Hailing the initiatives taken by the government, engineering export promotion body EEPC India said that the action will encourage young engineering graduates to take up entrepreneurship. “Schemes like self-certification and freedom from inspectors as also credit guarantee for bank loans should also be extended to the existing MSMEs , which in a way can be startups for graduating to larger scale,” said T S Bhasin, Chairman of EEPC India. Other benefits announced under the action plan include credit guarantee for startups with contribution of Rs.500 crore each year, waiver on capital gains tax and special schemes for women entrepreneurs. The government has also decided to bring in the Bankruptcy Bill in parliament to ensure faster winding up process in case of failure. Suggesting that MSMEs should be treated as startups, the EEPC Chairman said that measures like reducing fee for seeking patent registration and easing of IPR (Intellectual Property Rights) rules “can take Indian innovation to the global level”. Exports of engineering goods from India constitute about a quarter of the country’s outbound shipment annually. A majority of engineering exporters are MSME operators with an average contribution of up to 35% of total exports from this segment.
January 18, 2016 | 02:15pm IST
to success.