In 2016, our prime minister Shri Narendra Modi coined a slogan Startup India Standup India. From then, startups have started gaining importance in India. The central government has always supported Entrepreneurship in India. Various schemes came into force to support the startups.
Statistics state that many startup ideas could not come into force because there is not enough capital. So to overcome this problem, the government came up with a solution. It started providing capital for entrepreneurs through different schemes.
New Startup Policy -Financial assistance by Yogi Government:
During this corona crisis, the yogi government has planned to help small trades in Uttar Pradesh. It will contribute to the capital of rupees 5Lakh in this pandemic to support a person in business for marketing. This scheme to provide 5lakhs is named as New StartUp policy 2020.
Besides this, the central government is taking many steps to help Micro Small and Medium Enterprises(MSMEs). To expand MSMEs central government announced incentives for MSMEs. It also provided subsidies on loans and tax exemption for registered MSMEs. Other benefits, like the benefit of capital subsidy for registered MSMEs, are also provided. If the MSMEs are registered, then a loan with low interest is also provided.
Startup plan to be applicable in the state:
The New Startup Policy 2020 initiation taken by the government of Uttar Pradesh will soon be implemented in the state. The promotion of startup and incubation centres across the state will also be implemented. The additional chief secretary Alok Kumar also stated that MSMEs would be provided with a capital benefit of rupees 5 Lakh.
Alok Kumar also mentioned that to help new Startups and provide funding for MSMEs, the department of IT and Electronics is working with Sidbi(Small Industries Development Bank Of India). As per the reports, 70% are MSMEs in the PHDCCI chamber, and the number of members is more than one lakh.
It is also expected that the New Startup policy will increase employment opportunities both directly and indirectly. It is likely that now these startups would employ 50,000 people and indirectly for one lakh people. This New Startup policy will be valid for five years from the date of notification.