START-UP SEED FUND SCHEMES

The start-ups in India are growing rapidly under the economic measures taken by the central government. India has become the third-largest country for providing a suitable ecosystem for start-ups. More than 14000 start-ups are recognised during 2021-2022. This shows that the government schemes have been beneficial for building start-ups in India. Moreover, the government also encourages the growth of start-ups. Many funds have been arranged to help start-ups. The article intends to attempt to define the concept. Understanding the concept will help ascertain the impact of start-ups on the economy of India. Moreover, it will further include the funds and schemes that help grow start-ups in India. 

What is a start-up? 

Start-up indicates the undertaking of a small business or a project to expand and develop it in a full-fledged business model. Many companies have started as start-ups and are now operating in a bigger field. “start-up seed fund schemes” have helped new small businesses rise rapidly in India. Moreover, these businesses impact the economy positively. The rise of new businesses has paved the way for more employment opportunities. Hence, it is a big move in developing the Indian economy further. 

Many new companies have registered themselves under the “start-up India scheme”. The main objective behind creating such a scheme is to encourage innovation in products and services. Furthermore, innovative products and services will lead to creating wealth in the economy. This will also lead to more employment opportunities. Hence, it can be said that it is a useful tool to mitigate unemployment in the Indian population. This will help the economy to develop further. Moreover, new start ups will also lead to the rise of innovative skills and expertise, further enhancing the skill base among the population. 

Different start-up seed fund scheme 

In 2016, the central government launched the “start-up India scheme”. The provisions in the scheme can also be termed as “start-up seed fund scheme”. To further develop the Indian economy, the central government launched the “start-up India scheme”. Under the scheme, many benefits are provided to the start-ups. The main objective of this scheme is to encourage people to build new businesses in the economy. This will lead to the creation of wealth and employment opportunities. Hence, India is recognised as the fastest growing economy in building start-ups. There are more than 20,000 start-ups that have come up in recent years. 

The scheme includes many provisions and benefits to influence start-up growth in India. Moreover, these benefits are quite comprehensive to pave the way for small businesses to grow further. The recognition under the DPIIT scheme of “start-up initiative of India” offers a host of opportunities. This will help in growing the business positively. Furthermore, the start-ups can access greater opportunities such as easy compliance with lots of tax benefits under the scheme. The government has taken some bold steps by simplifying the compliances so the start-ups can grow smoothly. Moreover, the government is also offering exemption for certain taxes and “capital gain tax” will apply to certain start-ups. The tax benefits offered under the scheme are quite comprehensive and can help small businesses to grow freely in the absence of a draconian tax obligation. 

Moreover, the government is determined to grant more opportunities to the start-up companies by offering them new labs and organising events with healthy competition among the companies. The tax benefits and easy compliance will help in raising the spirit of the start-up owners. Furthermore, this will also lead to the growth of other small businesses. 

Impact of start-ups on the economy 

Studies indicate a massive rise in job opportunities due to the rise of start-ups. The rise of start-ups can be attributed to the initiative of the government taken in the form of a “start-up seed fund scheme”. Moreover, this scheme has further added impetus to the growth of start-ups in the Indian economy. The Indian economy is one of the fastest rising economies in the world. Moreover, the rise of start-ups also paved the way for expanding the existing skill and knowledge base. Studies show that the initiative also helped immensely by creating wealth in the economy. It also impacted the GDP of the country positively. Hence, it can be said that start-ups can be an effective tool in enhancing development in the economy.

Conclusion 

A start up is an effective tool in enhancing the development of an economy. The start up schemes helped India immensely to realise its economic goals. Moreover, the economic impact of these schemes is quite effective. Start up indicates the undertaking of a small business and projects intending to make it a scalable business model. The topic examines the different schemes the Indian government offered to encourage startup developments in India.

Moreover, it also includes different benefits that are offered under the scheme. Furthermore, there is a huge impact of start up companies on the economy. The start up companies have paved the way for more employment opportunities. Therefore, it can help in mitigating the unemployment issues. Further, the creation of start ups also leads to wealth creation. This will help expand the skill base further with the employment of new techniques to develop a business. It also leads to the creation of innovative products and services. Thus, it will help the economy in achieving its goal and objectives.