Indian Startups – Challenges and Opportunities

Abstract

Startup is defined as an entity incorporated or registered in India, with an annual turnover not exceeding Rs.25cr in any preceding financial year, and mainly working towards innovation, development of new products, or services driven by technology or intellectual property. Even though there are strong background for large number of startups in India they do face problems and challenges where they lag in progression of their firm, such as building and scaling up of startups, complex regularity environment, hiring, funding and policies which are stringent for upcoming startups. To overcome and to rectify the challenges faced by the startups, Recently Startup India Initiative launched by the Indian government was especially for the emerging startups and the prevailing startups where eligible companies can get recognized as startups by Department for Promotion of Industry and Internal Trade (DPIIT), through which it can access tax benefits, easier compliance along with intellectual property rights (IPR) and for their development which aims at promoting entrepreneurship among women and scheduled castes and tribes. The scheme is anchored by Department of Financial Services (DFS) and Ministry of Finance. There are various other schemes and skill development programme which government has enacted upon through which the new entrepreneurs can get benefited and the existing startups can avail it. This paper certainly deals with the challenges faced by the startups in India, the new schemes and development programme launched by the government in order to overcome the risk and the impact of the schemes on the startups.