With ‘Startup India, Standup India’ approaching, ways how Modi govt can make India a startup hub

With a government that has already done a lot to sensitise people about the importance of technology and encouraged the creation of startups, hopes are running high as Indians wait for Modi to unveil his action plan for the startup community at ‘Startup India- Standup India’ event on January 16.

The start up fund in the budget, Digital India initiatives and creation of a number of technology warehouses in many cities are a step in the right direction for the creation of an ecosystem.

According to R Murugesh, Group CEO, WNS Global Services & Chairman, NASSCOM BPM Council, these are early days and already start up projects are being positively impacted through incubators, angel networks and venture capital funding. “This will encourage youngsters to create technology enabled startups which can transform India,” he says. However, Murugesh feels in order for India to become another start up hub, following measures must be the center of focus:

1) Create 3-4 startup / tech islands across Indian regions where there is free flow of capital and talent from across the world with easy visas and no taxes. International talent (high tech and marketing talent) should find it easy to do work in India in these islands and repatriate earnings without taxes.

2) No taxes on start-ups for 5-7 years to enable them to focus on their business first and pay taxes when they actually have some earnings.

3) State government should provide fitted warehouses as well as free world class office accommodation inside SEZs to encourage startups to set up inside that state. They can charge rentals later and must focus more on quality projects as opposed to rental income.

4) World class residential accommodation, schools and hospitals to be made available inside SEZs by state governments to encourage the best talent to shift to these locations and work with these startups.

What Silicon Valley in the US has really created is an enabling atmosphere and some of these steps, if replicated back home, can really help in creating the next Facebook or Google out of India!