In line with PM Narendra Modi's earlier mandate to declare job creation estimates with each of the proposal being sent to the Cabinet, companies sighting benefits under the Startup India programme will also need to follow the suit.
Employment generation is the principle criteria governing all major decision of the government. To avail of benefits under the programme launched in January 2016 such as the tax-holiday and faster processing of patent applications, companies have to now declare the number of jobs its shall create upfront. Until now, innovation was the ruling factor which determined or qualified a company to be a start-up. Other factors that shall now be considered include few of the financial factors plus job creation estimates in future course of time.
But in accordance with a statement of a senior official, going forward the definition of a Start-up shall change. "We will do our own scrutiny at the time of examination of applications for giving the tax benefits," the official said.
Without much gung-ho, the programme with a basic aim to boost employment opportunity for the youth is yet to gear up. And out of the total 798 applications under the programme, only 10 companies managed to get the eligible tax benefits.
As per a Nasscom report, Startups are expected to generate 2.5 lakh jobs until 2020 by the year 2020. Further, Department of Industrial Policy and Promotion (DIPP) are trying all measures so that more and more companies can avail of the benefits provided under the scheme such as the waiver to necessarily complete a mandated certification from a government-accredited incubator.