AKIPRESS.COM - Prime Minister Modi announced on January 16 a string of initiatives to support the country’s start-ups, including three years of tax and compliance breaks aimed at cutting onerous government regulations and red tape, reports Hindustan Times.

Modi also reiterated plans to set up a Rs 100,000 million start-up fund, first announced by Finance Minister Arun Jaitley in the interim budget of 2014-15. He also said start-ups would benefit from cheaper and faster patent applications, a capital gains waiver if the money is reinvested in a similar venture, as well as easier exit for failed projects.

While the announcements will likely help improve the environment for start-ups in India, it wasn’t immediately clear how measures such as three-year tax breaks could help small-bore, innovative ventures that struggle for years to break even.

Modi’s speech was made in the presence of some of the biggest names in Indian and global start-ups who gathered in New Delhi for the launch of one of Modi’s flagship projects – “Start-up India, Stand-up India”.

“People who have achieved success are not just entrepreneurs but also adventurous. Success of entrepreneurs depends on their ability to take risk,” he said.
“That’s how [taxi aggregator] Uber became [god of wealth] Kuber,” Modi said to peals of laughter from the audience.

India is home to the third-largest number of technology start-ups after the United States and Britain, and they attract billions of dollars in funding every year, despite crippling government regulation and red tape – a hurdle Modi referred to in his speech.

“A lot can happen if the government did not meddle. We are here so that you can tell us what we should not do,” he said.

The Prime Minister also sought to encourage start-ups in government purchases, which now have rigid qualifications based on experience and turnover.