Rs. 10,000 Crore For Startup And Entrepreneurship Development; Union Budget 2014

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Rs. 10,000 Crore For Startup And Entrepreneurship Development; Union Budget 2014

This year the Indian Government is paying high attention towards entrepreneurship. While a month ago Hon. Prime Minister, Mr. Narendra Modi announced to form a separate department for Entrepreneurship lead by Mr.Sarbananda Sonowal , today the Union Finance Minister Arun Jaitley in his debut finance speech announced Rs. 10,000 crore to boost entrepreneurship in India.

Mostly small enterprises and startups are self funded or bootsrapped. Acceptiing that promoting entreprenurship still remains a challenge, Mr. Jaitley said one of the biggest hurdles has been the availability of capital by way of equity for such firms.

This Rs. 10,000 crore fund will act as a catalyst for startups and SMEs by financing them in the form of equity, quasi-equity and other forms of risk capital. Mostly the startups and small comnies rely on debt or family funds to operate the company. This indeed is going to help many aspiring Indian entreprenurs to achieve their goals.

Apart from the startup funds, Jaitley made some more announcement which will bring a relieve for the entrepreneurs.

Rs. 100 crore has been granted to establish Startup Village Entrepreneurship Programme, which will encourage the rural youth to take up local entrepreneurship programs.

To promote innovation and agro-startups technology centre network will be established for Rs. 200 crores.

“These steps reflect the serious approach of the government. They are recognizing entrepreneurship as a valid engine for growth and job creation,” said Ravi Gururaj, chair – product council and member – executive council, NASSCOM.

After so many steps taken by the new government, everyone is waiting to see the actual implementation of these programs ans schemes. If these are implemented in the perfect way India will see huge growth in entrepreneurship in coming years.

Asish is one of the core members of The Startup Journal. Pursuing his B.Tech degree, he is passionate about startups and entrepreneurship. He has been featured as an student entrepreneur in NDTV Profit and received certificate from International School of Entrepreneurship Education.