China is still
far ahead of India when it comes to Startups
The Asian continent is known for growth, in the recent years and two countries that are leading the bandwagon are China and India. While the Chinese dragon is already a developed country competing with the US and investing in start-ups in India, India is still struggling to find the upper hand in the equation.
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We compared the two countries’ startup policies to see what India can adopt from its neighbor in the upcoming
The Government of India had announced 'Startup India' initiative for creating a conductive environment for startups in India. The initiative was launched by the Prime Minister on January 16 2016, which is exactly a year back.
There are different components of the policy:
1) A clear cut definition of startup.
2) There is an Action Plan for startup which provides different institutional arrangements for support of startups. Procedure for obtaining startup license is elaborately mentioned.
3) The role of incubators, angel funds and venture capital funds are also illustrated under the Action Plan.
4) There is the tax incentives for startups and the government has established several funds with its own money for extending financial support to start-ups called the fund of funds.
The chinese government wants to move away from heavy industry towards a more service sector-led model driven by consumption for which start-ups are essential.
1) Chinese Premier Li Keqiang has urged local governments to implement policies encouraging “mass entrepreneurship and innovation” and to promote the growth of start-up companies.
2) Premier Li Keqiang frequently calls for “mass entrepreneurship.’’
3) In Shenzhen, authorities are offering to subsidize up to 70 percent of rent for “creative” start-ups. Local officials in the southwestern metropolis of Chengdu are setting up a 200 million renminbi “entrepreneurship and innovation development fund” and promising subsidies of up to 5 million renminbi. Funds.
The state has set aside more than Rmb2.1tn ($320bn) to invest supporting emerging entrepreneurs in the technology sector, according to Zero2IPO, the China-based consultancy. Impact
1) 12,000 new companies were founded each day in 2015.
2) About $49 billion in deals were made last year, making China second only to the United States, according to the accounting firm Ernst & Young. Impact
According to the Start up India statistics:
1) 84 start ups benefitted in terms of patent filing and IPR protection with 80 per cent rebate given in filing.
2) According to reports, last month, Ramesh Abhishek, Secretary DIPP said Short-listing of first set of incubators in the 100 new incubators proposed had been done, he said these would be outcome based incubators.
3) He also said there had been progress on tinkering labs. “500 is the target, 50 are already approved,” he said pointing out that the government had earmarked ₹50 lakh over three years for same.