“The new focus on startups is good, but it beats the purpose if you still call it industrial policy. (Startups are) not industry as traditionally defined,“ said Praveen Chakravarty of Mumbai Angels. The needs and challenges of new technology and new economy businesses are very different from traditional businesses and not limited to labour or land anymore, he said.“They don’t belong in DIPP.“
The Prime Minister flagged off the `Start-up India, Stand up India’ mission during his Independence Day speech on August 15.
Industry experts said the choice of DIPP over MSDE for the mission may add to the existing confusion on the nodal agency for startups. Currently, several ministries champion the cause of India’s startup ecosystem in several ways.
The ministry of micro, small and medium enterprises administers a . 10,000 crore startup fund-of-fund, ` while the ministry of finance is sorting out tax bottlenecks related to the industry. MSDE is working on a flagship scheme on entrepreneurship development with two national institutes of entrepreneurship recently coming under its wings.
Rajiv Pratap Rudy, minister of state (independent charge) for MSDE, is aware of the dilemma. Rudy told ET his ministry was trying to strengthen the institutional setup and the manpower required to handle the project.
“We would certainly want more dovetailing to take place. For the entrepreneur, the approach should be very clear. It may take some more time, but we are very hopeful. The Prime Minister has already given instructions that all should be dovetailed before the next budget,“ Rudy said, adding that the resources required for the project are huge.MSDE is also spearheading the Skill India mission, another flagship project of the government.
After DIPP was given the mandate for the startup mission, it has held consultations with various stakeholders -IITs, IIMs, startups such as Flipkart and Snapdeal, as well as incubators and mentors.
“The idea is to develop the entire ecosystem, be it capital requirement, incubation, intellectual property issues, marketing support and ways to scale up companies,“ said a government official, requesting anonymity .