In the last five years, the term startup has been heard more than jobs after college from youngsters. Every other individual who has an idea and an internet enabled phone, wants to be an entrepreneur of this new age India. The introduction of 3G and the soon to launch 4G services will and have seen many Indians venturing into the digital space for the first time. And this very same internet has made companies of today like Flipkarts, Olas and OYOs who have redefined the way each of the respective industry functions.
But this was done with little support from the Government of India, but the times are changing. India being the country with the largest youth population is showing a huge growth potential to become the Super Power surpassing US and even for that matter China in a few years.
The date 16 January 2016 will be remembered as an iconic day for PM Narendra Modi led government launched the ‘Startup India Stand up India’ initiative to recognise the startup culture in the country and help it flourish where job seekers become job creators, and eliminate the brain drain the country has been suffering from.
With Startup India, government has announced a 19 point action plan declaring dedicated funds worth of Rs 10,000 crore, tax exemption on profits for 3 years, no inspection for 3 years and faster patent fillings and clearances. All of this will encourage the young and aspiring Indians to build their own ventures.
Not only technology, retail or e-commerce industries but creative sectors like animation, gaming, VFX and comics may also benefit from this policy and thought leaders of the AVGC industry share their perspective about this new initiative.
Bioscopewala, President, Nishith Takia: The animation industry in India has a lot of people with extensive desires and aspirations but they are either cash trapped or lack support. This initiative will help the small scale and average entrepreneurs to find a place for themselves among the big players. Only when there will be a billion of entrepreneurs in India, the GDP and the economy of every individual will improve. Employment will be generated if this policy is accurately implemented.
Climb Media, Director, Kireet Khurana: I really don’t know whether this initiative will benefit the Animation industry on a large scale. This policy will work well for the App, Technology and Telecom industry as there is lot of IP creation there. While in animation, creation of IP requires considerable amount of funds and time.
Riva Animation and VFX, Creative Director, Viral Thakkar: In the VFX industry, it is extremely difficult to set up a new studio. All we can do is wait and watch if this policy will boost more artists in the industry, leading to generation of small VFX houses and more jobs.
Octro, CEO, Saurabh Aggarwal: This is certainly a great initiative by the government and will change how one views the startups in the country. Previously, a lot of government initiatives have been announced and nothing serious has developed out of those. We have been an economy where for the longest time the government used to provide highest number of jobs but now that is changing. We have no shortage of entrepreneurs in India. There is a problem and government is solving it but more or less it will be a wait and watch for now as to how will these policies be implemented, who will govern them and on what basis will a company be invested on. On the three year tax exemption that is announced, no startup makes profit in the first three years of its operation so that should be extended.
Mech Mocha, CEO, Arpita Kapoor: Not specific to gaming, this initiative will benefit all the aspiring young entrepreneurs. The tax benefits and eased labour norms will help startups to focus on creating the product instead of getting into all the chaotic processes while setting up the company. With a lot of startups being generated, inspection is a problem as many are not aware about the corporate laws and how to be on the right side of the line. But with the exemption, it will become a lot easier to operate and concentrate on the business. Since there is no adequate transparency about the policy yet, it will be a while before much can be said or written.
The Awesome Gaming Studio, CEO, Rajat Ojha: As most of the Indian game studios qualify as startups so if implemented, it’s going to be a very positive step for the entire industry in general. The current action plan has a lot of quality innovation but the issue is there can be lot of fine lines and implementation is the actual key.
The relaxation of the financial and labour norms will help the young startups immensely so they can focus on creating great products without worrying about unnecessary things as most game studios are run by creative people who don’t understand finance well. Another good thing which I can anticipate is that it focuses a lot on product/IP studios which will ensure that studios focus more on IPs rather than outsourcing services.
Most of the corporate and labour laws are made around big corporate and traditional businesses whereas game industry is kind of a new industry and always needed something fresh. With this policy being implemented, it will help eradicate the need to understand those complex corporate laws.
Raconteur, co-founder and COO, Manjunath Mysore: The tax exemption policy should be extended to five to eight years as three years is not a sufficient timeframe. Because when a startup like mine which is two years old approaches a bank, the bank asks for the physical property that we have and in such scenario, startups don’t really have a specific infrastructure to display, all they have is ideas and plans. Most of the funding for startups in India comes from outside India. The question arises, why is an Indian not ready to bet on another Indian? Finally I think this will change but for people to actually trust whether this policy will be effective or help the startups, the money allotted by the government needs to circulate in the market. For now, before the money reaches the entrepreneur, nothing can be analysed. Therefore, the government needs to make sure that the banks take the lead for this policy to be effective.
Kini Merch, Founder, Abhijeet Kini: The startup policy is a good initiative but planning is one thing and implementing is another. Execution of the policy is important. This initiative will definitely encourage comic entrepreneurs who want to create something but don’t know if they should go ahead with their idea. Comic and animation studios can now have a registered set up which will in turn encourage more talent and create employment opportunities. With this initiative, definitely there is a great opportunity and benefits for the new players who have innovative ideas and they can make the best use of it.