The Indian Start-Up Ecosystem received a major boost with the new government announcing its clear intent to encourage risk-taking among entrepreneurs. In his maiden Finance Budget, Union Minister Arun Jaitley announced a slew of reforms that includes a Rs 10,000 crore Venture Capital Fund for start-ups. This augurs well for several product start-ups, which can now look up to the government playing the role of a catalyst. The intent of the government is for start-ups to use this seed money and attract further capital.
More importantly, the Indian Union Budget went a step ahead to provide further cushioning to start-ups by identifying the need for a proper bankruptcy framework to be defined. This is a welcome note for entrepreneurs. It creates an environment to not only access seed capital and look to attract more investors, but also have clarity on exit options in the event of a failure.
I have always believed that India needs to create a clear framework to encourage more start-ups and product companies to emerge. They are going to redefine our value proposition immensely besides contributing directly to our economy. For this to happen, the culture of accepting failures and encouraging start-ups to innovate and succeed is critical. I believe this Union Budget clearly showcases the government’s intent to enable entrepreneurs in this regard.
It was equally heartening to see the focus on fueling top talent to this start-up ecosystem. Finance Minister Arun Jaitley said that the government has budgeted Rs 500 crore each to set up five new Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs). The premier engineering IIT colleges will be added to the states of Jammu & Kashmir, Chhattisgarh, Goa, Andhra Pradesh and Kerala. Top-ranked business schools or IIMs will be set up in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra.
More power to Indian product start-ups!