The startup is an initiative launched by the government of India on 16th of Jan in 2016, for the better future of the country’s youth. The purpose of this is to boost the morale and building a strong ecosystem to nurture the country. This will help in driving economic growth and generate large scale employment opportunities across the country. The startup is a limited liability partnership firm that was opened less than five years. The annual turnover of this firm is less than Rs. 25 crores. Prime Minister has announced that no tax would be charged on any start up for the three years from the day it is established. This is helpful in encouraging Dalits, Adivasi, and women towards entrepreneurship.
The action is taken to encourage the youth entrepreneurs for better future. Near about 1.25 lakh bank branches will embolden the youth businessman by giving them a loan. The program is beneficial for the country to show the talent of youth through their innovative businesses all across the world. It is necessary to spread the awareness of this program in the whole country so that more people can connect to this system in future. The program has been planned to bring the positive changes according to the need of development in the country.
Increase the Level of Exports
The import and export figures reflect the economic scenario both globally and within the country. And a country cannot grow without interacting with other parts of the world. The activities related to importing and exporting are governed by the Foreign Trade Policy. It is necessary to decrease the import level and increase the export level for the growth of the country. According to a survey, the positive growth in exports was registered in November 2014. The manufactures can use various government schemes to increase the export growth. There are lots of programs or scheme that boost the export like market development assistance scheme, export oriented unit scheme, a software technology park scheme etc.
One of the latest innovative programs started by the prime minister of the country is a startup. The encouragement of the start up in the country is needed as it boosts the morale of an entrepreneur. Because to start a business you need money and this initiative will help the youth and talented generation to convert their innovative ideas in dreams. The benefit of export internationally is the potential increase of sale and revenues. And this is going to increase as the companies manufacture the products of good quality and more demand means increased production which often lowers the per unit costs. The government of India provides an export incentive to boost and help exporters in the foreign market. More exportation brings more foreign currency in India which in turn helps in increasing the economy of the country. The export is necessary to improve the competitive advantage of Indian companies in the foreign market through high-quality product and cost reduction.
Compete With Existing Multinational Companies
Multinational corporations have lots of strategists that advise them how to enter in the emerging markets. But the managers in small scale companies have little guidance in this market. It is a big question for them that how they overcome the difference with competitors from advanced industrial countries? There are lots of options for companies facing this competition.
The startup will help the youth of country with unique ideas to start the own small scale business. According to this program, many bank branches are providing financial support to the entrepreneurs. Startup program helps small scale businessman’s to compete against the multinational companies. The program allows several bank branches to provide loan for the entrepreneur and they do not have to pay the tax for three years. The entrepreneur hire talented candidates that will help in rising their business to a great extent.
Self Dependence in Technology
Presently India is at the third position that invests in adopting new technologies across in the world. For instance, country invests $1 billion in cloud computing infrastructure. India is one of the top countries across the world in the field of scientific research. If the country starts building their own technologies then there will be no need to invest in another part of the world for technologies. This will helps in increasing the revenue of country and lower the cost of investing in other countries. There are lots of strategies to overcome its bottleneck for future growth and also impact on the country’s economy.
The ever growing technology has been considered as a great tool for business and lifestyle. This plays an important role in improving the lives of people across the world. The country is full of talent but alone innovation cannot facilitate success. The innovative young generation needs a great start to use their ideas and explore newer. And it requires initial funding to start the business until the time it starts generating revenue on its own. With the help of startup programs, the entrepreneurs have become able to be updated with the new trends that help in developing new technologies for both business and consumer. This becomes a great way for the progress of self-dependence in technology.
The self-dependence in technology as one of the most important is increasing the economy of India. There are also chances that other countries invest in our technologies. These programs also involve dealing with technology. This will increase the value of Indian currency. Hence, startup becomes an important tool for diverting a huge amount of foreign wealth into the Indian economy.
To generate Employment
Earlier India provides cheap labor to the world and for export of Indian services in the field of IT. But recently the startup program has initiated in India. And it helps in boosting the revenue and a prediction is made that e-commerce market of India will grow up to 50% within the next few years. This action taken by the government of India plays an important role in the employment scenario. As many entrepreneurs get the chance to take their business to new heights, the need for young talents is also rising.