Prime Minister's start up India-An act of faith
An element of faith
However, given the complexities of the Indian scenario and several constraints faced by investors, one can only conclude that Mr. Narendra Modi has moved with an element of faith that youth would rise up to the occasion and accept the challenges with enthusiasm and determination.Prime minister ,as per his desire, has gone ahead to give a fair trial to his pet theme.
One has to keep the fingers crossed
It would be appropriate to highlight that one has to keep the fingers crossed about the feasibility of adequate success of startup India campaign, particularly considering the fact that several of other pet themes of Mr. Narendra Modi such as Clean India campaign, Make in India announced with similar fanfare and hope, have not yet achieved the big breakthrough expected of them,for whatever reasons.
Need for innovation
Prime Minister has well emphasised the need for innovation, showing his clear understanding that India today is almost entirely dependent on import of technologies in various fields to sustain its industrial growth. The truth is that there is nothing big to write about achievements in the Indian R&D front, inspite of several thousand crores of rupees spent by Govt of India in operating the government owned CSIR labs. The contribution of private sector to Indian R&D efforts is even more dismal than the CSIR labs. The much hope that industry academic interaction will make innovative research take off has also not been realised, as most of the universities and educational institutions in India largely operate as degree/diploma conferring centers, after imparting ready made lessons to the students. In the educational institutions in India, there is little place for knowledge for the sake of knowledge, but knowledge acquisition is centered over getting success in the examination.
To improve the research climate in India, the fundamental transformation in the mindset towards research have to be achieved, which appears to be still a far cry. The startup India campaign in the absence of basic research strength may end up as more service oriented entrepreneurial schemes rather than manufacturing setups.
Start up India / Make in India
It is slightly disappointing that while talking of his startup India campaign, Prime Minister has not adequately linked startup India campaign with make in India campaign. It would have been more appropriate, if both the programmes have been clubbed and launched together.
Need to motivate the financing institutions
It is yet to be seen how Prime Minister would be able to motivate the financing institutions to help the startup entrepreneurs, with complete understanding. There is also need to provide mentor support to startup entrepreneurs and emphasis could have been laid on larger industries and organisations providing support to startup entrepreneurs by adopting their units as ancillary setups or custom manufacturers or contract suppliers to the extent possible.
Lack of clear cut direction
Overall, one cannot but miss the fact that there is lack of clear cut direction on the part of government of India to the industries and entrepreneurs about the appropriate areas into which the Indian investors should remain focussed. Government is yet to clarify that its policies and programmes would be in tune with encouraging specific industrial sector that are appropriate to national need, instead of leaving it entirely to startup entrepreneur to choose the area of operation which may prove to be inappropriate later on. It is necessary that the areas of investment should be supported by the pro active policies of the government.
Not to operate in isolation
All said and done, it is necessary to be cautious that make in India programme and startup India scheme should not be operated in isolation. There have to be an elegant situation where one complements the other and the governments lead in the choice of direction should be deemed very important. The government’s task does not end merely by announcing concessional schemes and it has to go much beyond.
Applaud PM's approach with hope
While Mr. Narendra Modi should be congratulated for his approach and understanding of the need, the importance of holistic approach should also need to be kept in mind.
Nandini Consultancy Centre