BJP's startup push in manifesto promises ₹20,000 Cr Startup Fund, 50k new startups
The BJP in its manifesto for the upcoming Lok Sabha elections has promised to launch a new scheme for entrepreneurs to provide collateral-free credit up to ₹50 lakh and promote startups through the creation of a ‘Seed Startup Fund’ with a corpus of ₹20,000 crore. It also aims to establish 50,000 new startups in the country by 2024. BJP has promised that it will ease regulatory requirement for startups and reduce tax compliance burdens for startups by reducing time spent on tax compliance.
Out of the collateral-free credit up to Rs 50 lakh that it has promised, BJP guarantees that 50% of the loan amount will be for female entrepreneurs and 25% for male entrepreneurs.
BJP claims in its manifesto that over 17 crore entrepreneurs have availed loans under the Pradhan Mantri Mudra Yojana. It plans to expand this initiative and reach up to 30 crore beneficiaries.
It has also announced that it will create 100 ‘Innovation Zones’ in Urban Local Bodies and will also set up 500 new incubators and accelerators by 2024.
Taking its Startup India initiative forward with inclusivity, BJP said in its manifesto, “We will support entrepreneurial ventures started by individuals from Scheduled Castes, Scheduled Tribes, Other Backward Communities, or Economically Weaker Sections and take forward the ‘Standup India’ initiative.”
It also aims to set up a new 'Entrepreneurial Northeast' scheme to provide financial support to the micro, small and medium industries and for employment generation in the North-eastern states.
In a bid to improve engagement of the government and its departments with the startup ecosystem, BJP says that it will begin ranking central ministries, departments, state governments and CPSUs (central public sector units) based on their engagement with startups and in bringing innovation, newer technologies and global practices and skills into the departments.
However, the manifesto does not address Angel Tax, a major issue that has been plaguing the startup ecosystem in India. Congress President Rahul Gandhi, on the other hand, has promised startups that there will be zero permission for the first three years for all new businesses and that Angel Tax will be abolished.
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