On the Startup Mission, Government Takes a DIPP

New Delhi
The commerce ministry’s Department of Industrial Policy and Promotion (DIPP) has been mandated to run PM Narendra Modi’s ambitious `startup mission’, not the ministry of skill development and entrepreneurship.Government officials said DIPP was chosen for the task as it was better equipped to create an ecosystem for startups focused on manufacturing, by tying up with the `Makein-India’ project. Experts, however, are questioning the choice of DIPP over the ministry of skill development and entrepreneurship, which the Modi administration created to take the cause of startups.

“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 .

Source: The Economic Times

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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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