- Title: India's Modi launches $1.5 billion fund to support start-ups
- Date: 16th January 2016
- Summary: NEW DELHI, INDIA (JANUARY 16, 2016) (ORIGINALLY 4:3) (ANI - NO ACCESS BBC) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** INDIAN PRIME MINISTER NARENDRA MODI AT THE LAUNCH OF 'START-UP INDIA' SCHEME MODI GREETING PEOPLE WITH FOLDED HANDS/ AUDIENCE CHEERING/ MODI SITTING INTERIOR OF THE HALL MODI AND OTHER FEDERAL MINISTERS STANDING UP/ MODI OPENING AND SHOWING A BOOKLET CONTAINING THE ACTION PLAN FOR THE SCHEME MODI HOLDING UP BOOKLET (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING: "We will set up a dedicated fund of 10,000 crore rupees ($1.48 billion) to meet the financial requirements of start-ups in the next four years, including an allocation of 2,500 crore rupees ($370 million) every year." AUDIENCE LISTENING TO MODI'S SPEECH (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING: "Profits from start-ups will be exempted from income tax for three years." OFFICIALS AT THE VENUE (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING: "We have introduced self-certification for nine labour and environment-related laws that directly impact you (start-ups) and there will be no inspection for three years." AUDIENCE LISTENING TO MODI'S SPEECH (SOUNDBITE) (Hindi/ English) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING: "We will reduce the current patent fee by 80 percent." MODI WALKING BACK TO HIS SEAT/ STANDING WITH HIS HAND TOGETHER/ MODI SITTING INTERIOR OF THE HALL OFFICIALS SITTING INDIA'S JUNIOR MINISTER OF FINANCE, JAYANT SINHA, SPEAKING AUDIENCE (SOUNDBITE) (English) CO-FOUNDER OF INDIA'S BIGGEST E-COMMERCE COMPANY FLIPKART, SACHIN BANSAL, SAYING: "I think right now, I think India's market needs to be upgraded quite a bit to be able to attract, to be able to raise large amount of funds. I think apart from that, absolutely I think we would love to raise funds in India." AUDIENCE LISTENING MODI SITTING DOWN AUDIENCE, OFFICIALS ON STAGE SITTING/ CHIEF EXECUTIVE OFFICER OF JAPANESE TELECOM AND MEDIA GROUP SOFTBANK, MASAYOSHI SON, WALKING TOWARDS MICROPHONE AND STARTING TO SPEAK TO AUDIENCE MODI AND INDIA'S FINANCE MINISTER, ARUN JAITLEY, ALONG WITH OTHERS LISTENING (SOUNDBITE) (English) CHIEF EXECUTIVE OFFICER OF JAPANESE TELECOM AND MEDIA GROUP SOFTBANK MASAYOSHI SON, SAYING: "Twenty-five, thirty years from now, I have a feeling this country may surpass all of the other countries (and) become number one in the world." OFFICIALS TAKING A SELFIE WITH MODI
- Embargoed: 30th January 2016 17:55
- Keywords: Delhi tax Modi start-ups technology India
- Location: NEW DELHI, INDIA
- City: NEW DELHI, INDIA
- Country: India
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA00140AUH51
- Aspect Ratio: 16:9
- Story Text:EDITORS PLEASE NOTE: THIS EDIT MATERIAL WHICH WAS ORIGINALLY 4:3 MATERIAL
Indian Prime Minister Narendra Modi launched a number of initiatives on Saturday (January 16) to support the country's start-ups, including a 100 billion rupee ($1.5 billion) fund and a string of tax breaks for both the companies and their investors.
India, which already has a handful of new generation success stories, is seeking to encourage more cutting edge technology and other start-ups - supporting new businesses in a country which badly needs to accelerate a still sluggish economic recovery and create millions of jobs as the workforce expands.
Modi's high-profile event in New Delhi - attended by hundreds of investors and entrepreneurs, including the founder of taxi-hailing app Uber, Travis Kalanick - promised a shot in the arm for the sector, with exemptions from tax and compliance inspections for three years.
The Indian prime minister unveiled plans for a new 100 billion rupee fund: a structured fund of funds that will invest in venture capital funds over a period of four years, financed by the government and the state-owned Life Insurance Corporation (LIC).
"We will set up a dedicated fund of 10,000 crore rupees ($1.48 billion) to meet the financial requirements of start-ups in the next four years, including an allocation of 2,500 crore rupees ($370 million) every year," Modi said.
Modi said they will be exempt from income tax for the first three years in which they make a profit. Their investors could also benefit: recognised funds of funds could see exemptions from capital gains tax, Modi said.
"Profits from start-ups will be exempted from income tax for three years," he said.
"We have introduced self-certification for nine labour and environment-related laws that directly impact you (start-ups) and there will be no inspection for three years," Modi added.
He also said start-up companies would benefit from cheaper and faster patent applications, enjoying 80 percent rebates on the cost of patents. A mobile app would allow companies to be set up within a day, he promised.
Online companies such as e-commerce marketplaces Flipkart and Snapdeal, along with ride-sharing company Ola, have highlighted the potential for home-grown technology successes in a country best known for capitalising on cheap engineering talent as the world's back office.
However, the push by Modi's government is the first time Indian policymakers have announced an agenda directly aimed at promoting start-ups and entrepreneurship.
The announcements, at a government-organised conference on start-ups in New Delhi, come months after Modi made a whirlwind tour of Silicon Valley, meeting the chief executives of Facebook Inc, Google Inc and Apple Inc.
India, with a rapidly expanding population of Internet users, is seen as one of the world's fastest growing start-up hotspots. Venture capital funds including Sequoia and Tiger Global have raised multi-billion dollar funds for their Indian investments in recent years.
While India's market regulator has eased some rules to make it easier for home grown start ups to list their shares on local bourses, the co-founder of Flipkart, Sachin Bansal, who was also at the launch, said the country's stock exchange was not yet ready for a large Internet listing.
"I think right now, I think India's market needs to be upgraded quite a bit to be able to attract, to be able to raise large amount of funds. I think apart from that, absolutely I think we would love to raise funds in India," Bansal said.
His comments came days after a rejig in the top management that was viewed by some as a step toward a stock market listing.
The National Association of Software and Services Companies estimates the number of new companies launched in India grew by 40 percent in the last year. - Copyright Holder: ANI (India)
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