Indian Prime Minister Mr Narendra Modi today unveiled numbers of incentives to boost start-up businesses, from 3-year tax holidays, inspector raj-free regime for three years to capital gains tax exemption to liberalise patent to Rs 10,000 crore funds to support them.
In addition a self-certification scheme was announced in respect of nine labour and environment laws stating that there will be no inspection during the first three years of launch of the venture.
A liberalised patent regime is also being brought to help start-up businesses register patents at only 20 percent of the original cost.
Start-up ventures are seen as key to employment generation and wealth creation. India has the third-largest number of start-ups globally.
Modi mentioned that profits earned by start-ups will be exempt from payment of income tax during the first three years of business. To boost financing, a 20 percent tax on capital gains made on investments by entrepreneurs after selling own assets as well as government-recognised venture capitalists will also be exempt.
India still rank very low on World’s Bank ease of doing business index however these measure by PM Modi would definitely make business environment conducive in India.