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When Start up and Make in India got a boost in four years of Modi govt

By Chennabasaveshwar
Google Oneindia News

The Commerce and Industry Ministry was in the news throughout the four years of PM Modi's rule. Needless to say Startup India and Make In India programmes received much attention. Both the major programmes launched with the objective to promotion of Entrepreneurship among youth and foreign investment (FDI) in India. And the results are palpable. Since the launch of these projects India has emerged as one of the fastest growing major economies. Also, India improved its ranking in Ease of Doing Business. India has leapt 30 ranks over its rank of 130 in Doing Business Report 2017.

When Start up and Make in India got a boost in four years of Modi govt

Following are the major schemes and achievement by the ministry:

Startup India: The ambitious schemes was launched in 2016 with the objective to foster entrepreneurship and nurture innovation by creating an ecosystem that is conducive for growth of Start-ups to drive sustainable economic growth and generate large scale employment opportunities.


  • Startup India Movement launched on 16th January 2016 for promotion of Entrepreneurship among youth.
  • Action plan unveiled for encouraging startups.
  • Tax relief for three consecutive years out of a block of seven year for startups.
  • Start-up Fund of Rs. 10,000 Crore to be released over two Finance Commission cycles, that is, by 2025.
  • Startups are allowed to issue ESOPs to promoters working as employees

Startups approved

  1. 4536 Startup applications have been recognized as Startups by DIPP as on 12th October, 2017
  2. 74 Startups have been approved by IMB for availing tax benefit
  3. 450+ Startups have been mentored for incubation and funding support by Startup India Hub

MAKE IN INDIA (DIPP): It was launched by the PM Modi on 25th September 2014 to make India the hub of manufacturing.

  • Partnership between the Government & Industry has increased.
  • Since the launch of Make in India initiative, India has emerged as one of the fastest growing major economies.
  • India has been ranked 3rd in the list of top prospective host economies for 2016-18 in the World Investment Report (WIR) 2016 of UNCTAD. Also India features amongst top 10 economies in terms of FDI inflows according to WIR 2016.
  • India's ranking in World Bank's Ease of Doing Business Index has made giant leap of 30 positions - from 130 in 2016 to 100.
  • India has established itself as one of the top 10 inbound investment destinations in the world. One of the key reasons is India opening up its sectors for FDI.

• India is one of the most open economies of the world when it comes to sectors opened up for FDI

• Due to its investment friendly policies and opening up of FDI sectors, India for the first time received FDI of more than USD 50 billion in FY 2015-16; the exact figure being USD 55.45 billion and highest ever FDI inflow of USD 60.08 billion in 2016-17.

• FDI has shown an extremely positive trend since the launch of Make in India Week with growth of 56 percent on FDI inflow and 68 percent on FDI Equity inflows, since the launch of the initiative over the corresponding period previous to it.

• Highest FDI inflow for the last 3 financial years (USD 160.7 billion) - 32% of cumulative FDI inflow over past 17 financial years (USD 484 billion)

• FDI has also increased constantly over the past three financial years i.e. FY 2014-15, FY 2015-16, FY 2016-17

The Govt. of India has also increased autonomy in the FDI inflows. The key measure for this is the increase in FDI via the Automatic Route (for which one does not require Govt. permission to invest) vis-a-vis the Govt. Route.

  • FDI in India has been opened in many key sectors such as - Defence Manufacturing, Food Processing, Telecommunications, Agriculture, Pharmaceuticals, Civil Aviation, Space, Private Security Agencies, Railways, Insurance and Pensions, Medical Devices and Pensions.
  • Most of the above mentioned sectors have 100 percent FDI via the automatic route barring Defence Manufacturing sector (FDI upto 49 percent applicable via automatic route and 100 percent FDI allowed via Government Route)

Indigenous Defence Production (Defence)

  • Indigenous built ballistic missiles
  • Indigenous Defence technologies built by India

Ease of Doing Business (EoDB) Initiatives:

1. World Bank's Ease of Doing Business Ranking

  • World Bank Doing Business (DB) Report, 2018 has ranked India at 100 among 190 countries. India has leapt 30 ranks over its rank of 130 in Doing Business Report 2017.
  • DB report acknowledges India as a top improver, with an improvement of 30 ranks compared to last year's report, the highest jump in rank of any country in DB Report, 2018. India is the only country in South Asia and BRICS economies to feature among most improved economies of the DB Report this year.
  • The World Bank's DB Report is an assessment of 190 economies and covers 10 indicators which span the entire lifecycle of a business.
  • India has improved its rank in 6 out of 10 indicators and has moved closer to international best practices (Distance to Frontier score).
  • This is credited to the mantra of "Reform, Perform, Transform" given by the Hon'ble Prime Minister, wherein a strong leadership has provided the political will to carry out comprehensive and complex reforms, supported by a bureaucracy committed to perform.
  • Government has undertaken an extensive exercise of stakeholder consultations, identification of user needs, government process re-engineering to match Government rules and procedures with user expectations and streamline them to create a more conducive business environment.
  • An extensive exercise is also undertaken to increase awareness among users about reforms to ensure extensive use of newly created systems.

2. Major achievements in the World Bank in the Doing Business Report

The important highlights of India's performance are:

1. Resolving Insolvency -

  • Rank improved from 136 to 103
  • Distance to Frontier (DTF) score improved from 32.75 to 40.75
  • Strength of insolvency framework index increased from 6 to 8.5
  • Insolvency & Bankruptcy Code created for efficient handling of restructuring & insolvency proceedings
  • Professional institutes set up for handling restructuring & insolvency proceedings

2. Paying Taxes -

  • Rank improved from 172 to 119
  • DTF score improved from 46.58 to 66.06
  • Payments reduced from 25 to 13 in a year
  • Time reduced from 241 to 214 hours
  • Total tax rate reduced from 60.6% to 55.3% (% of profit)
  • Post filing index improved from 4.3 to 49.31
  • Enabled electronic registration, return & payment of ESI & EPF contributions

3. Getting Credit -

  • Rank improved from 44 to 29
  • DTF score improved from 65 to 75
  • Strength of legal rights index improved from 6 to 8
  • Credit bureau coverage increased from 21.4% to 43.5% (% of adults)
  • Increased coverage of security interest registration under SARFAESI Act
  • Secured creditors prioritized over Government dues for purposes of recovery

4. Enforcing Contracts -

  • Rank improved from 172 to 164
  • DTF score improved from 35.19 to 40.76
  • Cost reduced from 39.6% to 31% (% of claim)
  • Quality of judicial process index improved from 9 to 10.3
  • Dedicated commercial courts established
  • National Judicial Data Grid (NJDG) to monitor and manage court cases.

5. Protecting Minority Investors -

  • Rank improved from 13 to 4
  • DTF score improved from 73.33 to 80
  • Strength of minority investor protection index increased from 7.3 to 8
  • Extent of conflict of interest regulation index increased from 6.7 to 7.3
  • Extent of shareholder governance index increased from 8 to 8.7
  • Greater transparency requirements for interested parties transactions
  • Greater shareholder protection through action against directors & claims for damages

6. Construction Permits -

  • Rank improved from 185 to 181
  • DTF score improved from 32.83 to 38.80
  • Procedures to obtain construction permits reduced from 35.1 to 30.1
  • Time reduced from 190.0 to 143.9 days
  • Cost reduced from 25.9 per cent to 23.2 per cent of warehouse value

3. DIPP's Business Reform Action Plan (BRAP): The DIPP has taken a series of measures to simplify and rationalize the regulatory processes to improve the business environment in the country. With an objective, to make it easier to invest or to do business in India various reforms initiatives have been taken to implement the Business Reform Action Plan (BRAP) to improve business regulatory environment in India.

  • DIPP has been closely working with the State/UT Governments to help them identify constraints in doing business and improving overall business environment in their respective State/UT.
  • In 2015, DIPP launched the 285-point Business Reform Action Plan (BRAP) - the new measure of competitiveness between States/UTs.
  • DIPP launched the online portal (eodb.dipp.gov.in) in April 2016 for real-time ranking of States/UTs on the basis of number of reforms implemented by them. It is the first platform in India for knowledge on regulatory compliance requirements across States.
  • In 2016, DIPP released the 340-point Business Reform Action Plan which includes recommendations for reforms on 58 regulatory processes, policies, practices or procedures spread across 10 reform areas spanning the lifecycle of a typical business. A total of 6,069 reforms were approved as implemented or not applicable on the portal
  • States/UTs worked very hard and showed tremendous competition. 12 States scored more than 90% implementation score in 2016. viz. Andhra Pradesh (98.78%), Telangana (98.78%), Gujarat (98.21%), Chhattisgarh (97.32%), Madhya Pradesh (97.01%), Haryana (96.95%), Jharkhand (96.57%), Rajasthan (96.43%), Uttarakhand (96.13%), Maharashtra (92.86%), Odisha (92.73%) and Punjab (91.07%).
  • For 2017, DIPP has identified a total of 372 reforms across 12 broad parameters covering: Labour enablers, Contract enforcement, Registering property, Inspection enablers, Single window system, Land availability and allotment, Construction permit enablers, Environment registration enablers, obtaining utility, paying taxes, access to information and transparency, sector specific.
  • For the first time, sector specific reforms related to healthcare and hospitality have been included. Apart from this, new reform action points have been added which include: introduction of a central inspection system, land allotment, tree transit permission, trade license, registrations under legal metrology, registration of partnership firms and societies, etc.
  • Another major change in BRAP 2017 is in the evaluation process wherein feedback will be solicited from the actual users/ businesses through a comprehensive B2G exercise on the reforms implemented by States/UTs. A score will be given to each State/UT based on the feedback collected. Overall ranking of the State/UT will be determined based on the combined score of implementation score and feedback score. DIPP has also released a note on Feedback Survey Methodology. It is also available on DIPP's website.

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