The first phase of general elections has kickstarted and as people vote to decide the fate of the nation – both the ruling party BJP and the opposition Indian National Congress have touched upon the topics of startups and technology in their manifestos.
The topmost contenders for this year’s election Bharatiya Janata Party(BJP) and Indian National Congress(INC) have released their election manifestos highlighting what they will do for the nation if elected to power.
There is surely a few things if not many in line up for the startups to look forward to. BJP assures to give collateral free credit of up to 50 Lakhs while Congress stands to get rid of Angel tax.
Here is a detailed comparison between BJP’s and Congress’s election manifestos regarding startups:
Manifesto of BJP
- Creation of 100 innovation zones in urban local bodies and the establishment of 50,000 new startups by 2024.
- Easing regulatory and compliance (tax filing) requirement for startups.
- Setting up of 500 new incubators and accelerators by 2024.
- Setting up of Rs. 20,000 crore seed startup funds to fund early stage
- Launching the ‘Entrepreneurial Northeast’ scheme targeting MSME’s for job creation in North East India.
Manifesto of Congress
- Creation of an enterprise support agency to help entrepreneurs including startups, with all-around business support including incubation, access to technology, funding, markets, and recreation of new products, services, and intellectual property.
- Exemption from applicable laws and regulations (except minimum wages act and tax laws) for a period of 3 years starting this fiscal, especially for MSME enterprise.
- Promotion of ‘mass entrepreneurship’ by supporting entrepreneurs to replicate tried and tested models of business to meet the growing demand in goods and services.
- Angel tax imposed on startups to be withdrawn completely.
- Creation of a patent pool by the government by acquiring patents and allowing access to patented technology to businesses at affordable costs.
- Establishment of a National Mission on technologies such as Big Data, Machine learning, Internet of Things, 3-D printing and manufacturing and enhancement of India. Inclusive innovation fund to provide funds to innovative enterprises to scale up and expand their operations.
Women’s entrepreneurship – taking on the cause of women entrepreneurs the BJP manifesto guarantees up to 25 Lakh loan amount for women entrepreneurs.
Until now more than 17 crore entrepreneurs have availed loans under the ‘Pradhan Mantri Mudra Yojana’ and BJP expects to expand this initiative to take the total number of beneficiaries of this scheme up to Rs. 30 crores.
Although on the other hand, Congress hasn’t promised any fundings although they said that they will allocate sufficient funds to promote science, technology, and innovation in the country.
Congress had organized a session called ‘conversations with Entrepreneurs’ with its party president Rahul Gandhi proclaiming that his government will ensure that the Angel tax gets abolished.
● The Congress has stated it endeavors to bring every Fortune 500 company to set up a business in India, along with encouraging and incentivizing starting of new businesses.
In its manifesto, the party said, “Foreign Direct Investment (FDI) plays a crucial part in development. FDI will be welcomed in all sectors, subject to exceptions on the grounds of national security.
Rules and regulations will be minimal. FDI will be accorded national treatment and there will be a level playing field for foreign and domestic investors. There will be no retrospective taxation.”
● While addressing FDI, BJP said more than 90 percent FDI approvals are now through the automatic route. FDI has grown by almost 50 percent in the last five years. Similarly, implementation of One Nation, One Tax through GST has brought all businesses under a single tax net.
Thus it will not be wrong to say that those startups which are already well established for at least 2-3 years, which depend largely upon immediate funding to further expand their business will get a huge boost if BJP comes into play.
Also if INC enters the stage small startups or those businesses who are just in their seed stage or beginning stage are bound to be benefitted by the technology, foreign investment policy and Angel tax abolishment plan of the Congress.