Law Group 6

MET Institute of Computer Science
Topic:
Legal and Regulatory Aspects of
Startups
And
Make in India
Group:6
NAMES ROLL
NUMBERS
Nikhil Sonawne 42
Juhi Shah 44
PriyankVedant 46
Ashi Gupta 48
Rushabh Parekh 50
Anusha Shetty 52
Payal Mehta 54
Akshay Choksi 56
Komal Shah 58
[1]
Sr. No Topics Page
No
Legal and Regulatory aspects of startup
1 Introduction 3
2 Startup India 5
3 Startup Laws and regulatory aspects in India 7
4 Live Examples 21
5 Statistics 24
6 International Comparison 29
7 Case Studies 32
Legal and Regulatory aspects of Make in India
1 Introduction 34
2 Need for Make In India 35
3 Live Examples & Projects 40
4 Statistics 43
5 International Comparison 46
6 Case Studies 48
Conclusion 51
Sources 53
[2]
Start Ups
Introduction
A Start Up is a young company that is just beginning to develop. Startups are usually small
and initially financed and operated by a handful of founders or one individual. These
companies offer a product or service that is not currently being offered elsewhere in the
market, or that the founder believe is being offered in an inferior manner.
It can be also explained as a company that is in the first stage of its operations. These
companies are often initially bank rolled by their entrepreneurial founders as they attempt to
capitalize on developing a product or service for which they believe there is a demand.
Startups may be funded by traditional small business loans from banks or credit unions.
Incubators can provide startups with both capital and advice, while friends and family may
also provide loans or gifts. A startup that can prove its potential may be able to attract venture
capital financing in exchange for giving up some control and a percentage of company
ownership. Often, startup companies deploy advanced technologies, such as Internet,
communication, robotics, etc. These companies are generally involved in the design and
implementation of the innovative processes of the development, validation and research for
target markets.[2] The term became internationally widespread during the dot-com bubble
when a great number of dot-com companies were founded
In the late 1990s, the most common type of startup company was a dotcom. Venture capital
was extremely easy to obtain during that time due to a frenzy among investors to speculate on
the emergence of these new types of businesses. Unfortunately, most of these internet
startups eventually went bust due to major oversights in their underlying business plans, such
as a lack of sustainable revenue.
However, there were a handful of internet startups that did survive when the dotcom bubble
burst. Internet bookseller Amazon.com and internet auction portal eBay are examples of such
companies.
[3]
Definition
The exact definition of "startup" is widely debated. Definition of the startup usually refers to
a company, a partnership or an organization designed to rapidly develop scalablebusiness
model.
U.S. Small Business Administration describes as a "business that is typically technology
oriented and has high growth potential".
Paul Graham says that "A startup is a company designed to grow fast. Being newly founded
does not in itself make a company a startup. Nor is it necessary for a startup to work on
technology, or take venture funding, or have some sort of "exit". The only essential thing is
growth. Everything else we associate with startups follows from growth." Graham added that
an entrepreneur starting a startup is committing to solve a harder type of problem than
ordinary businesses do. "You're committing to search for one of the rare ideas that generates
rapid growth.
I see startups, technology and innovation as exciting and effective instruments for Indias
transformation.
Shri Narendra Modi
Prime Minister of India
[4]
Startup India Campaign
Startup India Stand Up India. Startup India campaign is based on an action plan aimed at
promoting bank financing for start-up ventures to boost entrepreneurship and encourage
startups with jobs creation. The campaign was first announced by Prime Minister Narendra
Modi in his 15 August, 2015 address from the Red Fort.
Startup India is a flagship initiative of the Government of India, intended to build a

strong eco-system for nurturing innovation and Startups in the country that will drive
sustainable economic growth and generate large scale employment opportunities. The
Government through this initiative aims to empower Startups to grow through innovation and
design. It is focused on to restrict role of States in policy domain and to get rid of "license
raj" and hindrances like in land permissions, foreign investment proposal, environmental
clearances. It was organized by Department of Industrial Policy and Promotion. (DIPP)
On April 17, 2015, the Ministry of Commerce and Industry released a notification to define
startups. There were many points that were consistent from the speech given by Prime
Minister Narendra Modi during the unveiling of the Startup India, Standup India policy.
According to the government notification, an entity will be identified as a startup.
1. Till up to five years from the date of incorporation.

2. If its turnover does not exceed 25 crores in the last five financial years.
3. It is working towards innovation, development, deployment, and commercialization
of new products, processes, or services driven by technology or intellectual property.
Objective
To reduce the regulatory burden on Startups thereby allowing them to focus on their core
business and keep compliance cost low.
Details
Regulatory formalities requiring compliance with various labour and environment laws are
time consuming and difficult in nature. Often, new and small firms are unaware of nuances of
the issues and can be subjected to intrusive action by regulatory agencies. In order to make
compliance for Startups friendly and flexible, simplifications are required in the regulatory
regime.
[5]
Accordingly, the process of conducting inspections shall be made more meaningful and
simple. Startups shall be allowed to self-certify compliance (through the Startup mobile app)
with 9 labour and environment laws (refer below). In case of the labour laws, no inspections
will be conducted for a period of 3 years. Startups may be inspected on receipt of credible
and verifiable complaint of violation, filed in writing and approved by at least one level
senior to the inspecting officer.
In case of environment laws, Startups which fall under the white category (as defined by the
Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only
random checks would be carried out in such cases.
Labour Laws:
The Building and Other Constructions Workers (Regulation of Employment & Conditions
of Service) Act, 1996
The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service)
Act, 1979
The Payment of Gratuity Act, 1972
The Contract Labour (Regulation and Abolition) Act, 1970
The Employees Provident Funds and Miscellaneous Provisions Act, 1952
The Employees State Insurance Act, 1948
Environment Laws:
The Water (Prevention & Control of Pollution) Act, 1974
The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
The Air (Prevention & Control of Pollution) Act, 1981
Key points:
Single Window Clearance even with the help of a mobile application
10,000 crore fund of funds
80% reduction in patent registration fee
Modified and more friendly Bankruptcy Code to ensure 90-day exit window
Freedom from mystifying inspections for 3 years
Freedom from Capital Gain Tax for 3 years
Freedom from tax in profits for 3 years
[6]
Eliminating red tape
Self-certification compliance
Innovation hub under Atal Innovation Mission
Starting with 5 lakh schools to target 10 lakh children for innovation programme
new schemes to provide IPR protection to start-ups and new firms
encourage entrepreneurship.
Stand India across the world as a start-up hub
Startup Laws and regulatory aspects in India: All an Entrepreneur Needs to Know
Nurturing a new business includes many things. One such stepping stone is knowing basics
of the startup laws. Before diving into a deep legal sea, lets have a look at the vital startup
laws with which you can start the long journey
Structuring the Business Choosing a Business Vehicle: At the initial stages of

setting up any organization, every entrepreneur is faced with this major challenge of
choosing a Business Vehicle for his/her venture. Choosing the most appropriate
business vehicle for ones venture goes a long way in affecting the viability, visibility,
sustainability, suitability and profitability of ones organization. Hence, whether you
want to have a private limited company, public limited company, partnership firm, or
a limited liability partnership (more on these in the subsequent articles), all depends
on the kind of your venture, and your long-term goals, vision, and objectives. Every
such form of business is governed by a separate set of laws, so care has to be taken to
see to it that all the intricacies in the existing legal frameworks have been complied
with. Otherwise, hefty sums will have to be paid to the government in the form of
fines! So its always better to keep yourselves informed.
For example: Mr. Karan and Mr. Arjun, before getting his start up on board, had a
very big checklist. Their struggle was real. The idea of a startup is not enough. Its
implementation calls for a lot. They chose Sentra, an appropriate business vehicle,
by keeping sustainability, practicality, visibility, aptness and related profits in mind.
Zyntra is an Indian ecommerce company of fashion and casual lifestyle products.
They decided on a private limited company after considering the kind of venture,
goals, vision and objectives. Keeping in mind that their organizations existing legal
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frameworks are being complied with otherwise a great amount of fine will have to be
paid by this new venture.
Tax Laws and the Basics of Accounting: Every organization in the world be it
involved in any business has to pay some or the other tax (es) to the Central, State
and/or local/provincial government(s), as the case may be. So, it goes without saying
that all you entrepreneurs will be immensely benefitted if you keep yourselves abreast
of the basics of accounting and the way taxation works. Especially, the tax laws are
known to be a bit tricky. Also, the kinds of taxes applicable to different sectors,
geographical regions and/or products vary greatly. Hence sector and area-specific
knowledge of taxation would do well in maintaining the financial & legal health of
your organization.
For example: Mr. Karan and Mr. Arjun when started off knew that they had to pay
some or the other kind of tax to the state government or the central government.
Therefore, they had to be very careful about the accounting details and the tricky
taxation lanes that were implied on Zyntra. Since different sectors have different tax
laws, they had to be acquainted with the recent changes.
Securities Laws & Business Finance: Knowledge of Securities Laws becomes

essential only if you want to list your company, now or in the near future. The
Securities market is meticulously regulated by the Securities and Exchange Board of
India (SEBI) and it issues various regulations periodically. Hence, having a good
working knowledge of all these laws would smoothen the process of listing. And,
business finance refers to the management of all the financial needs arising during the
various stages of business life cycle, wherein you will have to look for options for
fund raising. Hence, knowledge of avenues like crowd funding, venture capitals,
angel investors, foreign direct investment, or even joint ventures (as a part of strategic
decisions), would help increase the profitability of your organization.
For example: Mr. Karan and Mr. Arjun were familiar with the security laws by SEBI
and that really helped them in easing out the process of listing. This would really help
them when they needed a fund raising. Thus, for the future of Zyntra, they must be
well aware about angel investors, crowd funding, joint ventures, etc.
[8]
Employment &Labour Laws: When you start an organization, it is obvious that you
will have employees working for you. You may also have independent consultants
and contractors working with you. Or, you may have outsourced your work to agents.
All these complex professional relationships are governed by many labour
legislations, flouting of which would not only be a financial burden on you, but would
also harm your goodwill, even before its built! Hence, treating your employees right
and keeping them happy, which is nothing but complying with all the labour
legislations, would go a long way in increasing productivity and employee morale,
and hence, the profitability of your organization.
For example: Mr. Karan and Mr. Arjun worked hard over the years and made great
profits out of this venture. They reached great heights. But this was only possible
when their employees were happy to work for them. With their Zyntra growing, their
workforce did too. And every such employee-employer relationship was bounded by
the labour legislations. Breaking which would harm them financially and their
goodwill would be affected as well.
Intellectual Property Law: If you are an organization that codes, or designs, or

programs, or does research, you could have a wealth of intellectual property (IP) with
you, and not legally protecting your IP would tantamount to leaving behind your bag
full of diamonds unclaimed on the roads! Hence, going for timely IP audits of your
organization, and also filing the right patent/trademark/copyright claims, would
increase the profitability of your venture manifold.
For example: Mr. Karan and Mr. Arjun like almost every organization considered
their IP as their wealth. Zyntras logo, its name itself too was very special to them and
they were alert enough to protect these instead of leaving them lose and waiting for
somebody to steal it from them. And then result in a law suit.
Information Technology Law: When you establish your organization in todays

highly digitalized world, you inadvertently would need digital signatures, and would
enter into e-contracts. You would also be making use of many cloud computing
services and would also be internally generating a lot of data. Sometimes, all the IP
you generate may be embedded in the IT you use. Hence, protecting yourself and your
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data from any infringers or hackers, protecting your privacy electronically, becomes
quintessential. Knowledge of IT law in this case, comes to your rescue.
For example: : Mr. Karan and Mr. Arjun realized that they were living in a
technologically advanced era where the technology is not only very common but very
important too. They also realized that having knowledge on laws like IT security,
domain registration, technology training & digest etcwill help Zyntra achieve better
business.
Corporate Governance: Though you are just a startup and not a huge organization,
though you are small in size, lessons from corporate governance and management can
take you a long way in managing your organization effectively.
For example: The running knowledge of Mr. Karan and Mr. Arjun about not only the
rules, practices and processes by which a company is controlled and directed but also
good practices and value to stakeholders will help Zyntra to effectively and efficiently
manage and formulate further expansion plans.
Contract Law: Contracts are indispensable tools of entrepreneurs. It wouldnt be an

exaggeration if it is said that no organization would come to existence without the use
of contracts, in some way or the other, at some stage or the other. Hence, basic
knowledge of certain fundamental principles of contracts certainly helps!
Ways of Dispute Resolution: Disputes are inevitable in todays business world. It is

one thing to be reactive to disputes, and a completely different thing to be proactive
and to see to it that all disputes are prevented, or at least minimized. You like it or not,
legalities do creep in and things do get messy and out of control when disputes arise.
Hence, you as the Captain and the CEO of your organization, would fare extremely
well in regaining the reins in your hands, if you know a bit about the formal (how
court cases work) and informal (arbitration, mediation, conciliation, etc.) ways of
dispute resolution.
For example: The founders of Zyntra, Mr. Karan and Mr. Arjun were very well
acquainted with the fact that a business survives on contracts. Nevertheless, disputes
may be one of the unavoidable consequences of few contracts sometimes. Thus their
knowledge from contracts to conciliation can ease the progress of Zyntra.
[10]
Knowledge of Public Procurements: The Government of India is the largest spender
in the Indian economy. Hence, private players have wonderful opportunities of
bidding during public procurements. This avenue can be a gold mine as far as creating
a steady flow of revenue is concerned, because government always orders in bulk, and
getting a government contract would also boost your goodwill in the market.
For example: According to Mr. Karan and Mr. Arjun, this might not be extremely
necessary. But they knew it for themselves that for Zyntras success they would need
a steady flow of funds. Thus bidding for government contracts can create wonderful
opportunities for growth, revenues and the reputation of Zyntra.
Hence, awareness about all these legalities can help out in smooth sailing of a startup even on
a rough sea.
Important Agreement for Startups

Software License Agreement
Licenses to use software necessary in the conduct of business. These can be as
simple as operating systems.
Equipment/ Technology Lease

Permits a party that leases equipment or technology to use the leased equipment or
technology for a limited period of time.
Online Agreements
These protect a company from misuse of its web-based resources. They often take
the form of click wrap agreements. These often take the form of disclaimers that
are designed to minimize the companys liability for misuse.
Outsourcing Agreements
These are particularly relevant in the Indian context. These often involve one
master services agreement entered into with the client followed by statements of
work specifying the scope of work and the consideration for that task. However, a
company needs to ensure that outsourcing activities in India do not create a per-
manent establishment in India for tax purposes.
[11]
Customer Contracts
Agreements entered into with customers. These usually lay out the terms of supply
by the company and the terms of payment by the customer. The company may
choose to use standard form agreements for smaller customers while larger
customers may have negotiated terms.
Distribution Agreements
Many products, especially in the FMCG sector, use large distribution networks to
ensure their products reach the farthest possible reaches of the country, or the
world. It is important that a proper agreement set out the terms of the company
with its distributors and other middlemen to allay any potential for conflict.
MOST COMMON LEGAL MISTAKES MADE BY STARTUPS
Wrong legal entity

Choosing the right legal entity right at the outset is important. Some structures to choose from
include a Registered Company (Public/Private Limited), LLP, proprietorship, and
partnership. The more widely accepted one is a registered company, especially for any deals
with foreign clients.
Go for a LLP or Limited Company if you do not want personal liability for the
losses/liabilities of your startup. Choose the right form of legal entity to avoid any legal
hassles and payment of higher taxes.
For example: Nilesh and Suresh wanted to start a small startup after the long analysis Nilesh
decided to go for private limited company and Suresh decided to go for LLP. During the
incorporation of private limited company Nilesh had to file various declaration and affidavits
along with a notarization whereas for LLP documentation work is very low. Also Nilesh has
submit the audit to the authorities while Suresh did not file the audit as his turnover was not
more than 40 lakh and capital contribution was not more than 25 lakh. In the end Nilesh
realized his need could have been fulfilled by LLP entity.
Lack of documentation
Each and every interaction, be it meeting minutes or anything else, must be on the record. It
is important to have all documents in order at all times. Legal due diligence can make or
break an investment deal.
[12]
For example: Akshay was searching for new investors for his start up. After investing his
time and effort he was able to arrange a meeting with investors. He prepared a brief but
detailed pitch for a presentation. He carefully arranged the documents like Balance Sheet,
Income Statement, and Cash flow Statement. But he failed to provide a Term sheet. As term
sheet is an important document that a company seeking financing provides to potential
investors. He did not receive any funding.
Missing founders agreement

Every startup may or may not run or be essentially successful. It is therefore important to
have a solid founders' agreement in place, because it is worth thinking about how you and
your co-founders might deal with failure. The founders' agreement should contain all
essential clauses such as ownership, vesting rights, and the roles and responsibilities of each
founder, including salaries and terms of employment.
For example: Mr. Karan and Mr.Charan started a business together and they decided to share
profits and losses in an equal ratio. Three years later, their business was not going too well
and due to heavy losses they decided to call off the business. Now, Mr.Charan came up
saying he would only bear 1/4th of the loss and not the remaining. Owing to the missing
founders agreement, this scenario took place. Had Mr.Karan and Mr.Charan been alert and
prepared and signed an agreement regarding this before commencing their business, this
would not have happened.
Mixing capital and revenue expenses
One of the major confusions for first-time business filers is about expenses. What expenses
are considered assets /capital expenditure and which ones are called revenue expenses
deductible in the P&L A/c. Higher-value items that will last significantly longer than one
year are called Capital Expenditure/Assets/Equipment.
For example:Mr.Arvind recordsthe expenses on laptop purchases as a revenue expenditure in
the P&L A/c. Whereas its only the depreciation or the amortization on the laptop that will be
deductible over a period of time.
Things that are consumed over the course of a year come under revenue expenditure. If the
equipment or capital items are by accident deducted as revenue expense, the tax department
can determine that the expense has been improperly characterised and a deduction does not
apply. Hence, be careful in accounting all such expenses.
[13]
Not protecting intellectual property:
Intellectual property (IP) is a startup's most valuable asset. Trademarks, patents, and
copyrights are the three essential components of IP. It is essential to not let anyone claim a
right to your IP. Non-disclosure agreements are a way of ensuring this. Startups often neglect
the protection of IP and suffer later.
For example: Mr. Suraj started his own business of food delivery system with a logo of a
man with a helmet riding a scooter. After putting much money and effort into building their
brand around that logo, they came to find out that they do not have sufficient rights over that
logo.The very famous home delivery system named Scootsy has the same logo and has it
registered as their trademark in India. And thus, received a letter from a lawyer.
Non-compliance with securities laws

Startup founders commonly issue stocks to angel investors, family, and friends. However,
stocks issued without complying with specific disclosure and filing requirements under
securities law can lead to serious legal issues at a later stage.
Missing regular tax payments

Businesses, be it sole proprietors or otherwise, are required to pay taxes in advance. This
means they need to determine their taxes for the year in advance and pay as prescribed
installments. They can get into trouble for not paying the taxes on time. It is therefore
important to take regular stock of the profit/loss statement at each quarter and pay the
advance taxes.
Not ensuring professional help for tax-related issues

A startup must appoint a tax consultant to ensure all regulations are being followed. This will
also give you more time to focus on building your company, forming strategic relationships,
and other things. Its essential to make sure all regulations are being followed to the tee.
Taxes are also not something that a company should revisit only once in a year.
For example: Intern Theory, a startup for helping students find an internship, started in 2012
on a very small level and it was called Intern Up back then. They were all from the
engineering background and had no great knowledge about accounts and tax.They did not
hire any professional help for accounting or taxation purposes. As a result, they had great
difficulty in dealing with the books of accounts as well as taxation. They missed paying
income tax for the initial years of their start up.
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Government policy for improvement:
1.Faster exits for startups: The expression exits is used more in connection with
winding-up as opposed to what most people in the startup system would understand. The
government ought to make the present process of voluntary winding up easy and efficient.
It should float special schemes where winding up should not be (i) expensive and (ii) time
consuming. It makes little sense for a company going through bankruptcy to pay more
money in a long-drawn winding-up process. The Ministry of Corporate Affairs can
release special schemes where companies that fall within the definition of startups can
make an application for winding up, and a liquidator is appointed to ensure closure of the
business within 30 to 60 days. The process should be so seamless that no startup should
require the assistance of a lawyer for this.
2.Tax exemption on investments above fair market value: Under The Income Tax Act,
1961, where a Startup (company) receives any consideration for issue of shares which
exceeds the Fair Market Value (FMV) of such shares, such excess consideration is
taxable in the hands of recipient as Income from Other Sources.
In the context of Startups, where the idea is at a conceptualization or development stage,
it is often difficult to determine the FMV of such shares. In majority of the cases, FMV is
also significantly lower than the value at which the capital investment is made.
Currently, investment by venture capital funds in Startups is exempted from operations of
this provision. The same shall be extended to investment made by incubators in the
Startups.
3.Tax exemption to startups for three years:. Even though most startups do not make
any profit, such exemption for those who do is a very positive step. However, once again,
the exemption does not clarify whether this three-year exemption will apply to startups
once they have started earning profits or will apply to them for a period of three years
from their incorporation. If the latter, the exemption is fairly redundant. In case it is the
former, then the government should be given its due credit for such a positive reform.
Also bear in mind that a company ceases to be a startup after five years from
incorporation, so if it only makes profits in its sixth year, this exemption is not likely to
apply. We definitely require the government to clarify its position on this.
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4.Tax exemption on capital gains: Due to their high risk nature, Startups are not able to
attract investment in their initial stage. It is therefore important that suitable incentives are
provided to investors for investing in the Startup ecosystem. With this objective,
exemption shall be given to persons who have capital gains during the year, if they have
invested such capital gains in the Fund of Funds recognized by the Government.
This will augment the funds available to various VCs/AIFs for investment in Startups.
In addition, existing capital gain tax exemption for investment in newly formed
manufacturing MSMEs by individuals shall be extended to all Startups. Currently, such
an entity needs to purchase new assests with the capital gain received to avail such an
exemption. Investment in computer or computer software (as used in core business
activity) shall also be considered as purchase of new assets in order to promote
technology driven Startups
5.Compliance regime based on self-certification: This is a very important move by the

government, especially with respect to labour laws. However, the fundamental issue of
compliance still persists. Startups still have to comply with the payment of gratuity,
payment of provident fund, contract labour regulations etc. The only difference is that no
labour inspector will come and conduct a suomoto.
6. Launching of Innovation Focused Programs for Students: The objective is to foster

a culture of innovation in the field of Science and Technology amongst students. In order
to promote research and innovation among young students, the Government shall
implement measures such as Innovation Core, NIDHI: A Grand Challenge program
(National Initiative for Developing and Harnessing Innovations),
UchhattarAvishkarYojana.
7. Promoting Startups in the Biotechnology Sector: The objective is to foster and

facilitate bio-entrepreneurship. The Biotechnology sector in India is on a strong, growth
trajectory. Department of Biotechnology endeavors to scale up the number of Startups in
the sector by nurturing approximately 300-500 new Startups each year to have around
2,000 Startups by 2020. In order to promote Startups in the sector, The Department of
Biotechnology shall be implementing certain measures along with its Public Sector
Undertaking Biotechnology Research Assistance Council (BIRAC) such as Bio-
incubators, Seed Fund and Equity Funding.
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8. Organizing Startup Fests for Showcasing Innovation and Providing a
Collaboration Platform: The objective is to galvanize the Startup ecosystem and to
provide national and international visibility to the Startup ecosystem in India. A pivotal
component for growth of Startups is regular communication and collaboration within the
Startup community, both national as well international. An effective Startup ecosystem
cant be created by the Startups alone. It is dependent on active participation of academia,
investors, industry and other stakeholders.To bolster the Startup ecosystem in India, the
Government is proposing to introduce Startup fests at national and international
stages.These fests would provide a platform to Startups in India to showcase their ideas
and work with a larger audience comprising of potential investors, mentors and fellow
Startups.
9.Building Innovation Centres at National Institutes: The objective is to propel

successful innovation through augmentation of incubation and R&D efforts. In order to
augment the incubation and R&D efforts in the country, the Government will set up/ scale
up 31 centres (to provide facilities for over 1,200 new Startups) of innovation and
entrepreneurship at national institutes.
10. Harnessing Private Sector Expertise for Incubator Setup: The objective is to
ensure professional management of Government sponsored / funded incubators,
Government will create a policy and framework for setting-up of incubators across the
country in public private partnership. India currently lacks availability of incubation
facilities across various parts of the country. Incubation facilities typically include physical
infrastructure, provision of mentorship support, access to networks, access to market, etc.
Of all these features, physical infrastructure entails large capital investments which can
generally be facilitated by the Government. However, requisite skills for operating an
incubator are pivotal as well, for which expertise of the private sector needs to be
leveraged. Considering this, Government shall encourage setting up of 35 new incubators
in existing institutions and 35 new private sector incubators.
11. Credit Guarantee Fund for Startups: The objective here is to catalyse
enterpreneurship by providing credit to innovators across all sections of society. In order
to overcome traditional Indian stigma associated with failure of Startup enterprises in
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general and to encourage experimentation among Startup entrepreneurs through disruptive
business models, credit guarantee comfort would help flow of Venture Debt from the
formal Banking System.
Debt funding to Startups is also perceived as high risk area and to encourage Banks and
other Lenders to provide Venture Debts to Startups, Credit guarantee mechanism through
National Credit.Guarantee Trust Company (NCGTC)/ SIDBI is being envisaged with a
budgetary Corpus of INR 500 crore per year for the next four years.
12. Providing Funding Support through a Fund of Funds with a Corpus of INR
10,000 crore: The objective here is to provide funding support for development and
growth of innovation driven enterprises. One of key challenges faced by Startups in India
has been access to finance. Often Startups, due to lack of collaterals or existing cash flows,
fail to justify the loans. Besides, the high risk nature of Startups wherein a significant
percentage fails to take-off, hampers their investment attractiveness. In order to provide
funding support to Startups, Government will set up a fund with an initial corpus of INR
2,500 crore and a total corpus of INR 10,000 crore over a period 4 years (i.e. INR 2,500
crore per year) . The Fund will be in the nature of Fund of Funds, which means that it will
not invest directly into Startups, but shall participate in the capital of SEBI registered
Venture Funds.
13.Legal Support and Fast-tracking Patent Examination at Lower Costs: The

objective here is to promote awareness and adoption of IPRs by Startups and facilitate
them in protecting and commercializing the IPRs by providing access to high quality
Intellectual Property services and resources, including fast-track examination of patent
applications and rebate in fees.
Intellectual Property Rights (IPR) are emerging as a strategic business tool for any
business organization to enhance industrial competitiveness. Startups with limited
resources and manpower, can sustain in this highly competitive world only through
continuous growth and development oriented innovations; for this, it is equally crucial that
they protect their IPRs. The scheme for Startup Intellectual Property Protection (SIPP)
shall facilitate filing of Patents, Trademarks and Designs by innovative Startups. Various
measures being taken in this regard include fast-tracking of Startup patent applications,
panel of facilitators to assist in filing of IP applications, government to bear facilitation
cost, rebate on filing of application, etc.
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14. Startup India Hub: The objective here is to create a single point of contact for the
entire Startup ecosystem and enable knowledge exchange and access to funding. Young
Indians today have the conviction to venture out on their own and a conducive ecosystem
lets them watch their ideas come to life. In todays environment we have more Startups
and entrepreneurs than ever before and the movement is at the cusp of a revolution.
However, many Startups do not reach their full potential due to limited guidance and
access.
The Government of India has taken various measures to improve the ease of doing
business and is also building an exciting and enabling environment for these Startups, with
the launch of the Startup India movement
15.Rolling out of Mobile App and Portal: The objective here is to serve as the single
platform for Startups for interacting with Government and Regulatory Institutions for all
business needs and information exchange among various stakeholders. In order to
commence operations, Startups require registration with relevant regulatory authorities.
Delays or lack of clarity in registration process may lead to delays in establishment and
operations of
Startups, thereby reducing the ability of the business to get bank loans, employ workers
and generate incomes. Enabling registration process in an easy and timely manner can
reduce this burden significantly. Besides, Startups often suffer from the uncertainty
regarding the exact regulatory requirements to set up its operations. In order to ensure that
such information is readily available, it is intended that a checklist of required licenses
covering labor licensing, environmental clearances etc. be made available. Currently, the
Startup ecosystem in India also lacks formal platform(s) for Startups to connect and
collaborate with other ecosystem partners.
Towards these efforts, the Government shall introduce a Mobile App to provide on-the-go
accessibility for registering Startups with relevant agencies of the Government, tracking
the status of the registration application and anytime, applying for various schemes, etc.
[19]
Online Procedure for registration of Startup:
Step 1. Application for 1day Rs100
Director Identification
Number (DIN) and
Digital Signature Certificate 4days Rs400-2650
(DSC)
Step 2. Get company name 2days Rs500
approved from ROC and
certificate of incorporation 7days Rs4000-10000
Step 3. Scanned copies of Within 6 months of name
documents to be attached to approved
get certificate of
incorporation;
MoA Rs200
AoA Rs1000-4000
Power of Attorney Rs100
Step 4. Apply for 7days
PAN and Rs94
TAN Rs62
The entire process takes about 30-40 days. There are certain other formalities that can be
completed once you get the certificate of registration. They are:
Rubber stamp for company
Register for VAT and professional tax
Employee provident fund
Medical insurance
STASTICAL DATA
The latest report by industry body NASSCOM and Zinnov, analyzes the current
scenario and emerging trends across the various dimensions that define the Indian
startup ecosystem, and gauge Indias position as a global startup hub that is becoming
attractive for investors, startups, & corporates
As per the statistics given in the report, the number of active investors in the
[20]
ecosystem has grown from 220 in 2014 to 490 in 2015, depicting a 2.3X growth.
Further, 8 out of every 10 top VC/PE Firms in India are foreign, and global
investment in the Indian ecosystem is leading to an increased FDI.
The report also states that total funding in 2015 has grown by ~125% over 2014.
Similarly, the number of accelerators grew by 40% from ~80 in 2014 to ~110 in 2015.
According to data from Your Story, a media body that covers startups, capital worth
$9 billion was invested in Indian startups in 2015, which is equal to the cumulative
funding in the 2010-2014 period.
Startup incubators - organizations that help business ideas to develop by providing
mentorship, office space and other relevant resources - have grown from 80 in 2014 to
110 in 2015, a 40 percent increase, as per NASSCOMs report. Interestingly, half of
these incubators are set outside the dominant trio - Bengaluru, Delhi and Mumbai - to
foster entrepreneurship in other Indian cities.
Last year in Q1, startups in India had raised close to $450 million. That means the
2015 Q1 figures show a 300% growth in the amount raised. There were 300 deals in
the entire year in 2014 half of that many deals were made in Q1-2015. In India we
saw 147 deals between January to March, declared investments totaled at $ 1.7 billion
plus around 30 deals with undisclosed amount. In the similar time frame, the UK
startup scene saw $ 682 million investment and the U.S. startups have raised about
$9.7 billion in Q1 2015.
Apart from the U.S., big VC firms were quite focused in investing in China and India.
The first Quarter of 2015 saw 67% more deals in India than in China in absolute
volume.
Start-ups are the next big economic force in India, the world's youngest startup nation
with 72 per cent founders below 35 years of age,
There is half a chance that you will fail if you enter sectors like logistics, ecommerce,
food tech and analytics as there too many players, with a sizeable number of them
going bust.
Startup firms in India raised $583 million (about Rs 3,915 crore) in the second quarter
this year, a sharp fall from the $2333 million (about Rs 15,666 crore) they raised a
year ago, indicating falling valuation and a bearish signal from investors.
[21]
India has raised $2.1 billion in first half of 2016 but there is 40 per cent decline from the
same period in 2015 when startups raised $3.5billion . This is because market is over-
cautious right now. Some of the big bets placed during 2014 and 2015 didnt go well, so now
investors dont want to put in so much money. Now they over analyse the market before
investing. This trend will probably continue for few more months not because the market is
bad but because investors are more cautio
us.
The above data shows that maximum number of startups reside in Bangalore . Bangalore is
placed among top 20 influential startup ecosystems around the world and also among the
eight largest technology innovation clusters around the world. shipping for a merchant or
starting an information publishing business. Bengaluru has been the prime destination for
talent and capital with primary focus being on marketplace and fintech startups.
INDIAS MOST FUNDED IN 2015
[22]
CATEGORY NAME OF THE AMOUNT INVESTORS
COMPANY
Cab aggregator Ola $900 million Tiger global, Softbank, tiger

Global, falcon edge capital
Shopping Paytm $890 million Alibaba, Ratan Tata , Ant
Financial services group
Logistics E-Com Express 4133 million Warburg pincus, Peepul capital
Online Classfields Quikr $150 million Tiger global ,Kinnevik, norwest

venture capitals
Warburg pincus, eBay
Budget Hotels Oyo rooms $125 million Light speed
Soft bank
Healthcare Practo $120 million Tencent holdings,
Sequoia capital
Restaurant Discovery Zomato $110 million Info edge, Sequoia capital
Vy capital
Music Streaming Saavn $100 million Tiger global management,
Steadview capital
Grocery Shopping Grofers $165 million Soft bank
Sequoia capital, Tiger global
Analytics Manthan Systems $60 million Norwest venture partners,
Fidelity international ltd
Reasons of success of some of the above ventures:
Ola- They partner with private taxi owners , provide modern technology , processes for booking ,
dispatch and quality assurance.Instead of buying and renting out their own cars, OlaCabs partnered with a
number of Taxi Drivers, and added a touch of modern Technology to the whole set up, where people could
book cars at short notice through their call centers and from their app. The bookings allowed half/full day
rental and even outstation taxis.
Oyo Affordable, strategic location like airports , business hubs, stations, user friendly , hiring quality
people, indias first technology driven network of standardized branded budget hotels.
PaytmPaytm is compatible with all possible platforms (android. Ios, windows, bbm). Entering the world
of online shopping across all verticles ,mobile wallet
Zomato - User Experience Design, User Engagement, SEO Friendly, Additional sources of revenue.
International comparison of start-up
[23]
Twenty to thirty years ago, all tech start-ups were created in cities like Silicon Valley and
Boston. Today, technology entrepreneurship is a global phenomenon, with start-up similar to
Silicon Valley rapidly emerging all around the world. An interconnected, global start-up
landscape is taking shape.
Four areas where improved policy impact the success of a Start-up:
1. The first is to find ways to stimulate the financial foundation of your ecosystem by offering
matching grants to VC funds and direct grants to start-ups. Many ecosystems like Tel Aviv,
Singapore and Santiago have found these policies to be very successful, especially in the
beginning stages of an ecosystems formation.
Eg: In India department of science and technology (DST), in the 2016-17 financial year, will
provide seed capital to 50-80 new ventures with funding ranging from 50 lakh to 1 crore per
company.
In Chile government gives following funds
Due diligence costs: The Government funds up to 60% of due diligence cost or up to
30,000 dollars to visit and explore Chile.
Launch of Start-ups: The Government provides another 30,000 dollars to launch a
company in Chile.
Rent of office space and Lab: If the start-up works out of Chilean Government
technology centers, the government pays for 5 years of rent, up to US$ 1 million. If it
operates from elsewhere, it pays for 50% of the cost of rent.
2. Create policy that minimizes the friction of incoming flow of foreign capital and foreign
talent.
Eg: Reserve bank of India (RBI), in its sixth monthly policy statements, has proposed steps to
improve ease of doing business for start-ups through easier access to foreign capital and by
enabling smoother transfer.
Singapore, Hong Kong has much easy access to foreign capital compare to other countries.
3. Next, simplify regulations for start-ups, allowing for low legal cost of start-up formation,
start-up bankruptcy, and liquidation on start-up exit.
Eg: In India introduction of bankruptcy bill in parliament as exit option to start-up within 90
days.
[24]
4. Differentiate your start-up ecosystem and accentuate its strengths. Start-up ecosystems can
differentiate by focusing on a stage of the start-up life cycle. Or, focus on particular markets
or product types, such as media in Los Angeles or hard science in Boston.
Eg: Los Angeles has most number of media related start-ups in United States
Worlds top countries for start-ups and their comparison (Forbes 2015)
1. China
Start-up Hub: Beijing and Shenzhen
Internet coverage and Speed: 46%/ 3.2Mbps
Company registration fees: $1
Vat: 17%
Corporate income tax: 25%
Beijing is one of the largest city in china, centres the financial industry and political power makes it
prime location for start-up
2. Malaysia
Start-up Hub: Cyberjaya and Kuala lumpur
Internet coverage and Speed: 67%/ 5Mbps
Vat: 6%
With the effort put in by Malaysian government under the national alliance to collectively
push Malaysia towards high income nation model.
3. Poland
Start-up Hub: Warsaw and Krakow
Vat: 23%
Poland has big internal market and strong entrepreneurial history. Warsaw has a many
[25]
success stories such as allegro, live chat
4. Russia
Start-up Hub: Moscow
Internet coverage and Speed: 62%/ 8.6Mbps
Vat: 18%
Moscow introduced a skolkovo foundation, an initiative by Russian government to establish
new and innovative business. The 1000 acre hub was intended to establish an
entrepreneurship culture.
5. India
Start-up Hub: Bangalore
Vat: 4%
With 3100 start-ups, India is the third biggest tech country and Bangalore is its IT capital.
6. Australia
Start-up Hub: Sydney Melbourne
Internet coverage and Speed: 82.3%/ 6Mbps
Vat: 10%
Corporate income tax: 28.5%
SysStart is one of the Sydneys premier start-up organizations offering support, resources and
communication for local entrepreneurs.
7. Tunisia
Start-up Hub: El ghazela and Tunis
Internet coverage and Speed: 50.7%/ 4Mbps
[26]
Vat: 18%
Tunisia is in a first start-up generation and many projects and possibilities are open.
Fig: Top Global Start-up Ecosystems according to Compass.co (formerly Start-up Genome)
Fig: Indian startup ecosystem comparison

Total no of start-up mentioned above table is approximate value for the comparison purpose.
From the table we can see that US has most number of start-ups. In US and Israel more than
50% of start-ups are technological based it is mainly total internet coverage and speed in both
the countries is better compare to India. The process to start a business in Singapore, Japan,
[27]
Israel, and US is simple compare to India and china as you can see from table (third row).
Singapore has lowest corporate tax and they also provide 100% tax exemption for start-ups. It
is one of the reason most of the Indian start-ups relocating to the Singapore. Also most of the
Indian start-ups have headquarters in Singapore even though they operate in India. Japanese
bank charges lowest interest rate compare to other countries. India needs to improve in this
area
Suggestions for improvement:
Though number of startups in India is increasing there is still vast scope for improvement. The total
internet coverage and speed in India is really low compared to other developing nation India need to
improve on that front. India can take the help of private organizations like Google or public sector
organisation BSNL and MTNL to improve speed and coverage. Improvement in internet coverage and
speed will really boost the start-up ecosystem. Tax system in India is hectic and there is need for
quick and significant reforms regarding the problems. Support regarding capital for start-up is
minimal and lending rates of public sector banks are high and it can possibly be cut down
significantly. India dont have startups that invest in innovative technology government should give
specific incentives to these type of startups.
Case Study: India

The Bombay High Court directed the state government Thursday to take necessary steps to
prevent unauthorised sale of drugs online. The court was hearing a public interest litigation
(PIL) seeking a ban on the sale of Schedule H drugs online without prescription drugs or
cash memos, calling it illegal.
Justices N H Patil and S B Shukre expressed concerns over the sale of medicines by online
pharmacies. They raised doubts over several factors involved with the online delivery system,
including sources of procurement.
The PIL filed by a Mumbai college lecturer, MayuriPatil, through her lawyer VallariJathar,
has given a list of Schedule H medicines that come with a warning: To be sold by retail on
the prescription of a registered medical practitioner only.
The whole process of drugs supply by those websites is in violation of the Drugs and
Cosmetics Rules, 1945, says the PIL, accusing the websites of not observing the provisions
made under various laws.
The PIL has also sought to know if these websites have a licence to sell Schedule H and
Schedule X medicines, such as Diazepam, Lorazepam and insulin, among others.
The websites are ignoring provisions of law supposed to be followed to run a pharmacy
business, the petitioner claims.
[28]
According to Rule 61 of the Drugs and Cosmetics Rules, 1945, it is compulsory for retailers
and wholesalers to have a licence to sell drugs.
The petition says, It is crystal clear that drugs, of any category, cannot be sold without
licence under the rules.
Patil cited rules dealing with cash memo, prescription and other particulars. The PIL also
prays for a committee to be set up to make a list of all such portals.
Case Study
1. Mobikon registered in Singapore:
Mobikon, a cloud-based customer engagement platform for the hospitality and retail sector,
was founded in Pune but moved its headquarters to Singapore a few months back.
Established in 2009 by Samir Khadepaun and Salil Khamkar, the company has renamed itself
as Mobikon Asia.
Mobikon shifted its headquarters after it raised $2.5 million from Singapore-based VC firm
Jungle Ventures and Spring Seeds Singapore. "The ease of doing business in Singapore was
the trigger. Besides, we are closer to the VC ecosystem and have access to a vast pool of
expat talent. In fact, we've hired someone from a Fortune 500 company and the Singapore
government, by way of a grant, will take care of 30-40% of his salary," said Khadepaun, who
has 350 clients in India and Singapore including Royal Orchid Hotels and Radisson Hotels.
Taxation is primarily the driving factor behind deciding on the location for registering a
company. One can look at the examples of MNCs registered in Ireland as it has a corporate
taxation rate of 12.5%, which is considered one of the lowest in the world - Apple, Adobe,
Accenture, Aviva Vodafone, etc.
Mobikon must have compared the taxation clauses between India and Singapore on the
following fronts-
1. Corporate taxation rate - Singapore has a corporate taxation rate of only 17%, whereas
India has a rate of 34%.
2. Double taxation avoidance - Singapore has a one-tier corporate tax system whereby tax at
the corporate level (i.e. any underlying tax) is the final tax.
Accordingly, dividends paid by Singapore resident companies are exempt from further
Singaporean tax in the hands of investors. Now, considering the investor base of Mobikonis
currently comprising of Venture Capitalists & Private Equity investors it makes sense for
[29]
them to save the potential tax liability which might occur if the dividends are distributed from
Mobikon in India.
3. Customs duty - Singapore being a transit and trade hub has limited import duty on only a
few items like Petroleum products, tobacco etc., and NO export duty. Compared to India, that
contributes to a lot of savings given that Mobikon will have a lot of foreign vendors (for
electronics, fashion apparels).
2. QIKPOD
One of Indias most ambitious startups, Qikpod, which raised a record amount of funding in a
seed round last November, has run into trouble with a fight between its founder and an
associate reaching the courts over ownership of the company.
Neeraj Ray, an early associate of serial entrepreneur Ravi Gururajs e-commerce locker
startup, Qikpod, has filed an injunction suit against the latter, accusing Gururaj of not giving
him promised equity in the startup. Injunction means a court order prohibiting a person to do
something.
A Bangalore civil court has passed an interim order, a copy of which FactorDaily has
reviewed, refraining Gururajs venture from either allotting or issuing new shares in the
company, or from commercially launching the MeralockerQikpod product during pendency
of the suit.
Gururaj has approached the Karnataka High Court, which has given an interim stay on the
trial court order and asked Ray to present his case on June 3. Gururaj, who chairs industry
body Nasscoms Product Council, is a serial entrepreneur with at least two successful exits to
Nasdaq-listed buyers, according to his LinkedIn profile
QikPod had raised $9 million in seed funding from Accel Partners, Flipkart, Delhivery and
Foxconn Mobile late last year. This was billed as the largest seed round fund raising in India.
Qikpod aims to set up a network of automated electronic parcel lockers across the country to
help with delivery of ecommerce orders.
The contention of the plaintiff is that due to his innovative ideas he had important portfolios
and he invented a product which would serve delivery box or locker for stoic packages
delivered by the e-company such as Amazon, Flipkart, etc., and he named the product as
Meralocker, the interim order said.
[30]
The launch of the product Qik Pod and issuance of shares in the Company is subject to court
orders. We have no other statement to make, as the matter is still pending before the court,
Ray said in a statement.
Ray, a technology industry veteran working with UK-headquartered British Telecom until
few weeks ago, was involved with Gururajs startup idea sometime for few months,
according to another person familiar with the venture.
Gururaj emailed the following comment to FactorDaily on Thursday:
A false and frivolous case has been initiated by Mr. Neeraj Ray. The allegations made and
reliefs sought are false and unsustainable. We have, already, approached the Honble High
Court of Karnataka at Bangalore, challenging the ex-parte ad-interim injunctions granted by
the Honble Trial Court on 26.04.2016. The Honble High Court was pleased to grant an
interim order of stay; which in effect, allows us to proceed with the launch of our QikPod
product.
I would like to make no further comments on the merits of the matter, as the same is sub-
judice. In any event, as things stand, the commercial launch of our QikPod product will
proceed as planned.
The suit underscores challenges in managing expectations in founding teams at early stage
startups. As many industry insiders point out, most of the startups die not for lack of funds,
but misunderstanding among co-founders or early team members.
In this case, a common acquaintance of Gururaj and Ray said that the misunderstanding may
be traced to failing to document expectations legally.
Verbal agreements are not enough. No matter how well you know each other, you must have
a legally binding agreement, this person said, requesting anonymity because the matter is
sub judice. In this case, there are emails from both the individuals conflicting each others
claims.
Disclosure: FactorDaily is owned by SourceCode Media, which counts Accel Partners among
its investors. None of FactorDailys investors have any influence on its reporting about
Indias technology and startup ecosystem.
JUDGEMENT:
Stayorder has been passed by the courtfirm is allowed to take all sort of decision except the
one that is related to equity and ownership.
[31]
BANANA BANDY LIVE EXAMPLE
Launched in February 2015 by ShashankJogani, 22 and KavanAntani, 20, BananaBandy is a

platform which caters to all the requirements of the Indian creative ecosystem. With the aim
of addressing the aforementioned challenge in the industry, it has created an integrated
creative platform for students, professionals, institutes and design-focused companies.
We cater to the Indian creative ecosystem. On our website, any creative can sign up, upload
his/her portfolio, interact with like-minded professionals, and also explore projects of
different genres, says KavanAntani, Co-founder and CEO, BananaBandy.
He further adds that the platform also serves as a portal for potential employers to recruit the
creative talents who best fit their needs and budget. It focuses on connecting the right talent
with the right company.
BananaBandy is a combination of a community, where users showcase their work, like and
share projects, and follow other creatives, and a marketplace, where companies can appoint
creatives based on their portfolios. The Indian creative community itself needs to come
together, to boost and inspire the work done in the country.
In India, design-focused companies rely solely on their databases and referrals to find
creative talent. This is the case everywhere, right from MNCs to small studios. We are a
homegrown platform that showcases more talent than companies networks will have access
to. Thus we often connect companies up with exactly the right talent for them. We also
expose Indian creative talent to many more opportunities. In a nutshell, we are a LinkedIn for
Indian creative professionals; instead of resumes we have portfolios, says Kavan.
Creativity is contagious. Pass it on. Says ShashankJogani
Inspiration:
The Indian creative community is one of the largest in the world. However, despite being a
huge community of creative people, Indias creative professionals are yet under-appreciated
and their massive potential still untapped. But with internets penetration continuously
[32]
increasing in the country, now they have a better chance to present their creativity at the
global level. The reason behind Banana Bandys inception was just that, to help Indian
creative ecosystem reach the world market. With BananaBandy, we are planning to create an
integrated creative platform for students, professionals, institutes and design focused
companies, says ShashankJogani.
Growth
BananaBandy claims to have accumulated over 3600 registered users, and seen over 1500
projects uploaded, through only word-of-mouth publicity. Within a month of introducing the
jobs section, it has seen about 100 companies posting over 130 job requirements on the site.
Persistent issues
Creative talents need monetization and opportunities to join the website, whereas companies
need a good list of creative professionals to post job requirements.
However, constant communications with our users, and frequent meetings, have ensured that
we have overcome these things to a great extent. This is how weve formed a strong
community of creative, and attracting 100+ companies, within a month of launching our jobs
module, says Kavan.
Funding news
BananaBandy started off as a fully bootstrapped company. However, within a month of the
platform launching, it raised a seed round at Rs 2.5 crore valuations from SrinivasaAluri,
Managing Director, Morgan Stanley Private Equity and Chaitanya Deshpande, former M&A
Head, Marico. The venture is using the funds for marketing, innovation, product
enhancement, and setting up advanced systems in the company.
[33]
MAKE IN INDIA
Introduction
Make in India is an initiative launched by the Government of India to encourage multi-

national, as well as national companies to manufacture their products in India. It was
launched by Prime Minister NarendraModi on 25 September 2014. India hoped to emerge,
after initiation of the programme in 2015 as the top destination globally for foreign direct
investment, surpassing the United States of America as well as the People's Republic of
China. In 2015, India received US$63 billion in FDI.
Prime Minister NarendraModi launched "Make in India" in a function at

the VigyanBhavan. On 29 December 2014, a workshop was organised by the Department of
Industrial Policy and Promotion which was attended by PM Modi, his cabinet ministers and
chief secretaries of states as well as various industry leaders.
The major objective behind the initiative is to focus on job creation and skill
enhancement in 25 sectors of the economy. The initiative also aims at high quality standards
and minimizing the impact on the environment. The initiative hopes to attract capital and
technological investment in India.
It is also a major national initiative designed to facilitate investment; foster
innovation; enhance skill development; protect intellectual property, and build best-in-class
manufacturing infrastructure.
'Make in India aims at increasing the GDP and tax revenues in the country, by
producing products that meet high quality standards, and minimising the impact on the
environment. Fostering innovation, protecting intellectual property, and enhancing skill
development are the other aims of the program.
Going ahead, the Indian manufacturing sector provides an excellent opportunity to

international investors to collaborate with existing businesses as most of the businesses have
plans to expand through various options. This also reiterates the fact that the businesses are
actively willing to participate in the Make in India mission of the government. With various
initiatives being implemented by the government to facilitate the ease of doing business, the
manufacturing sector in India is expected to pick up pace and will provide immense
opportunities to domestic and international investors to come and make in India.
Its Logo inspired by the Ashoka Chakra is a striding lion made of cogs, symbolising
manufacturing, strength and national pride.
[34]
Vision: The initiative hopes to attract both capital and technological investment in India and that
the country will become the top destination globally for foreign direct investment (FDI),
surpassing even China and the United States.
NEED for MAKE IN INDIA

Manufacturing sector because major workforce of the country consists of
unskilled labour which is engaged in manufacturing sector.
During 2005-12, India only created 15 million jobs while as per the data, 10
million people join its workforce every year.
Manufacturing offers the surest way to employ millions of workers in middle-
income jobs.
According to Justin Lin, a former chief economist at the World Bank. China
will shed 85 million manufacturing jobs in the next few years because of the
fast rising wages. India can attract some of the jobs if it can cut some of the
bureaucratic bundles that scare away new business.
GDP Composition:
Manufacturing contribution in GDP
1. 17% from Manufacturing
2. 69% from services
3. 14% from agriculture.
And of the 474 million Indians who are gainfully employed, only 100 million
do manufacturing jobs compared to 232 million who work on farms and 142
million employed in the services businesses.
SMES contribute 90% of all industrial units and 40% export within the
manufacturing sector.
Between 2004 and 2011 manufacturing sector has registering annual growth of
around 7.25%.
PRIME ISSUE:
India imports 65% of the current demand for electronics products, most of it
from China. If the situation is left unchanged, the countrys electronics import
bill may well surpass its oil import expenses by 2020.
[35]
While the demand for electronics hardware in India is projected to increase in
$400 billion by 2020, the estimated domestic production could rise to $104
billion only.
India imported $38.46 million worth of USB flash drives from China to 2013-
14
OBJECTIVES
Make in India is aimed at making India a manufacturing hub and economic transformation
while eliminating the unnecessary laws and regulations, making bureaucratic processes
easier, make government more transparent, responsive and accountable and to take
manufacturing growth to 10% on a sustainable basis
Overall, Make in India focuses on new ideas and initiatives such as-
First Develop India and then Foreign Direct Investment,
Look-East on one side and Link-West on the other,
Highways and I-ways.
facilitate investment
foster innovation
protect intellectual property
build best-in-class manufacturing infrastructure
National Manufacturing.
An increase in manufacturing sector growth to 12-14% per annum over the medium
term.
An increase in the share of manufacturing in the countrys Gross Domestic Product
from 16% to 25% by 2022.
To create 100 million additional jobs by 2022 in manufacturing sector.
Creation of appropriate skill sets among rural migrants and the urban poor for
inclusive growth.
An increase in domestic value addition and technological depth in manufacturing.
Enhancing the global competitiveness of the Indian manufacturing sector.
Ensuring sustainability of growth, particularly with regard to environment
[36]
FOREIGN DIRECT INVESTMENTS
The Government has taken a number of FDI Policy reforms, which are not only bold
but also historic
The measures taken by the Government are directed to open new sectors for foreign
direct investment, increase the sectoral limit of existing sectors and simplifying other
conditions of the FDI policy
FDI policy reforms are meant to provide ease of doing business and accelerate the
pace of foreign investment in the country
49% FDI permitted in Insurance, Pension, defence sectors
Foreign investment in excess of 49% in defence has been allowed on case to case
basis with Government approval in cases resulting in access to modern technology in
the country or for other reasons to be recorded. FDI limit for defence sector made
applicable to Manufacturing of Small Arms and Ammunitions covered under Arms
Act 1959
FDI up to 100% in Teleports, Direct to Home, Cable Networks, Mobile TV,

Headend-in- the Sky Broadcasting Service, Up-linking of Non-News & Current
Affairs TV Channels, Down-linking of TV Channels.
In case of single brand retail trading of state-of- art and cutting-edge technology
products, sourcing norms can be relaxed up to three years subject to Government
approval
Foreign equity cap of activities of Non-Scheduled Air Transport Service, Ground

Handling Services increased from 74% to 100%.
FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger
Airline and regional Air Transport Service raised to 100%, with FDI up to 49%
permitted and beyond 49% will be through Government approval.
100% FDI permitted in the marketplace model of e-commerce
100% FDI for retail trading, including through e-commerce, has been permitted in
respect of food products manufactured and/or produced in India
100% FDI allowed in Asset Reconstruction Companies under the automatic route
FDI limit for Private Security Agencies raised to 74%
[37]
EASE OF DOING BUSINESSS
Description: Ease of doing business is an index published by the World Bank. It is an aggregate
figure that includes different parameters which define the ease of doing business in a country.
It is computed by comparing frontier scores of different economies. Higher rankings (a low
numerical value) indicate better, simpler, regulations for businesses and stronger protections
of property rights.
India ranks 142nd in the ease of doing business ranking worldwide.
.INITIATIVES UNDERTAKEN TO FACILITATE THE EASE OF DOING BUSINESS

De-licensing and deregulation measures to reduce complexity and ensure increased
transparency.
Online applications for Industrial License & Industrial Entrepreneur Memorandum have
been on 247 basis. Industrial license have been extended to three years, state governments
asked to introduce self-certification.
Services of all Central Government Departments & Ministries will be integrated with the
eBiz a single window IT platform for services by 31 December 2014.
The process of obtaining environmental clearances has also been made online.
All returns should be filed on-line through a unified form and a check-list of required
compliances should be placed on Ministrys/Departments web portal.
Center has advised all the departments that all registers maintained by the businesses should
be replaced with a single electronic register
No inspection to be undertaken without the approval of the Head of the Department.
Road blocks in ease of doing business in India:

Delays in land acquisition
Delays in municipal permission
Delays in supply of materials
Delays in award of work
Operational issues dragging down the implementation of the projects
Movement of projects through multiple departments at the state and Central levels
Involvement of multiple agencies
Requirement of various approvals across different stages of the project cycle
[38]
Measures underway:
Central Government
Eliminate requirement of minimum paid-up capital and common seal
Integrate processes for obtaining PAN, TAN, ESIC and EPFO registration with
incorporation of company
Single-window clearance for import and export
State Government
Online portal for the grant of construction permits (Mumbai)
Joint inspection by all departments to grant NOCs for construction permits (Mumbai
and Delhi)
Simplified procedure to install electricity connection in 15 days (Delhi)
[39]
Statistics related to Make in India
1. Automobile 2.IT sector
Passenger Vehicle are to increase at a Revival in demand for IT services from US
CAGR of 16% between 2013-20 and Europe

Growth drivers
Increasing adoption of technology and

Favorable government policies like lower
telecom by customers
excise duties, automotive mission plan
High value client additions bigger than
Easy finance schemes owing to which the
USD 1 million registering 13.5% growth
auto finance industry has grown at the rate
of 13% between 2008-13
Fourth largest automotive market volume in The IT-BPM sector contributes 8.1% of the
the world country GDP
Domestic Market Share 2014-15: Indias IT industry amounts to 7% of global
Passenger Vehicles 13%. market
Commercial Vehicles 3%. Rapidly growing urban infrastructure has
Three-wheelers 3%. fostered several IT centers
4. Two-wheelers 81%. IT Services exports are USD 55 Billion.
The automotive industry accounts for 45% The IT industry has more than 15,000
stats
of the country's manufacturing gross firms; of which 1000+ are large firms.
domestic product (GDP), 7.1% of the India is ranked as the 9th largest start-up
country's GDP and employs about 19 hub in the world with over 3100 start-ups in
Million people both directly and indirectly. the country.
India is currently the seventh largest
producer in the world with an average
annual production of 23.36 Million
vehicles, of which 3.57 Million are
exported.
[40]
3.Food processing sector 4.Textile and garments sector
Liberalization and growth of organized retail Rising per capita income ,favorable
Rising income level and growing middle demographics and shift in preference for
Growth drivers
class branded products
Favorable economic and cultural Increase in domestic demand is set to boost
transformation and shift in attitudes and cloth production
lifestyle Favorable policies of government of India

Expansion of retail sector with many global
players entering the market
42 mega food parts are setup in PPP at an Abundant raw materials and increasing
investment of 98 billion rupees demand for exports
Major industries constituting the food Increased penetration of organized retail
processing sector are grain milling, sugar,
edible oils, beverages, fruits & vegetables The sector contributes 14% to industrial
processing and dairy products. production, 4% to Indias GDP and
The contribution of the food processing constitutes 13% of the countrys export
stats
sector to the Gross Domestic Product (GDP) earnings.

in 2012-13 amounts to INR 845.22 Billion. With over 45 Million people, employed
Indias food processing sector has grown at directly, the industry is one of the largest
an average rate of 8.4% during last five sources of employment generation in the
years ending 2012-13. country.
The share of food processing sector in GDP The domestic textile and apparel industry in
of manufacturing sector was 9.8% in 2012- India is estimated to reach USD 100 Billion
13. by 2016-17 from USD 67 Billion in 2013-
14.
[41]
KEY POLICY ANNOUNCEMENTS
The new government has undertaken many reforms in the recent times that
have created scope for rejuvenation of Indias growth story. The focus of the government has
been on refueling growth, taming price pressures, facilitating industrial and businesses
environment and simplifying the policies and procedures.
Development of 100 smart cities to facilitate infrastructure development

Launch of a user-friendly Indian Trade Portal aimed to facilitate Indian exporters
Launch of labour inspection schemes, ShramSuvidha portal, Universal Account Number
(UAN) facility for Employees Provident Fund Organisation (EPFO) subscribers
Easing of green rules for mining, roads, power and irrigation projects
Proposal to replace the Planning Commission with a new body
Digital India to connect all gram-panchayats by broadband internet
Creation of a Common National Market for the entire country to ensure free movement of
goods across the state borders.
The above announcements basically focuses on improving the facilitation of inward and
outward trading. For long the Planning Commission was the sole decision and financial target
setter however, new ways of improving efficiency have been taken into consideration like
implemementation of NITI Aayog. Also the concept of smart cities will allow the rural and
the backward areas to connect with the biggies. The above policies are expected to give a
huge boost to the manufacturing sector as the companies coming in India will be offered
smoother settling phase along with better recruitment as a result of updated technology.
Industrial areas and manufacturing will get a better working environment which in turn will
help Make in India.
[42]
INTERNATIONAL COMPARISON
For decades, 'developed' and 'developing' have been the parameters on which the countries
are judged based on their prosperity and standards of living. That has changed, with the
World Bank switching to more precise descriptions of economies.
And India which till now found a place under the common umbrella with other
'developing' countries will now be called 'lower-middle income country/South Asia'.
Countries like Bangladesh, Sri Lanka, Pakistan lie in the same category.
It will be interesting to compare "Make in India" with similar initiatives launched by other
countries, with the manufacturing sector expected to be a growth engine for the global
economy. These are some observations from publicly available reports on major initiatives
that can be considered an equivalent for the sake of comparison and as a rear view mirror
during the journey
[43]
Comparison with CHINA.
Economically, China comes way above India, however a study of these two countries can be
done on relative basis considering the recent progress India has made on the economic front.
The Communist Party announced a Made in China programme aimed at transforming its
manufacturing sector, months after Prime Minister NarendraModi unveiled his Make in India
plan, also targeted at manufacturing. Look closer, though, and the signs point to a broad shift
that could draw the two Asian giants closer economically in the years ahead.
China wants to jump into areas such as factory automation and build the types of
computerised controls needed to make high-precision goods like iPhones or cars.
Made in China 2025 is a 10-year campaign to push the country beyond labour-intensive work
into more sophisticated sectors, from robotics to aerospace. Modi's goal is to bring basic
manufacturing to an economy that needs more decent-paying jobs. In short, China has set its
sights on rivalling Germany or Japan, while India will happily settle for where China is now.
Indias advantage against China:

Despite Chinas gigantic strides, India still has hopes. A new index of manufacturing costs,
including productivity-adjusted wages, electricity, natural gas and currency movements,
created by the Boston Consulting Group (BCG) of the worlds 25 biggest exporters shows
Chinas traditional Cost Advantage is now under pressure denting its attractiveness. Under
pressure from the U.S., China has had to appreciate its currency by 30 per cent since 2006,
which is eroding its exports cost competitiveness. Just-in data from the International
Monetary Fund show that China is no longer the largest trade surplus economy in the world.
Therein lies an opportunity Make in India must cash in. Indias labour costs are among the
lowest in the world. According to the U.S. Bureau of Labor Statistics, average
labourcompensation (including pay, benefits, social insurance, and taxes) in Indias organised
manufacturing sector increased only marginally, from $0.68 an hour in 1999 to $1.50 an hour
[44]
currently. The average compensation in Chinas manufacturing sector in contrast rose 20
percent year-on-year in the same period to $3 an hour.
Besides, the cost competitiveness, India boasts a nearly 500-million-strong labour force
comprising unskilled workers and English-speaking scientists, researchers, and engineers,
making it a potential destination for cost-effective research and development-oriented
manufacturing.
Events of Chinese manufacturer setting up shop in India and a few Indian companies moving
production bases back home from China are encouraging. Havels, Godrej, Micromax and
auto-components maker Bosch are amongst a handful of companies that have recently moved
back to India some part of their manufacturing or outsourcing in China owing to currency,
labour and other cost advantages.
As Chinese factories move up the value-chain to hi-tech manufacturing, opportunities would

open up for Indian entrepreneurs but they are up against stiff competition.
INDIA AGAINST SOUTH AFRICA

As a largely free-market economy, South Africa encourages foreign investment in both the
public and private sectors. Factors attracting FDI into the country include a transparent
regulatory framework, a large population, access to raw materials and political stability.
South Africa has great potential for possible foreign investors compared to other countries in
the world; however, its record in terms of attracting FDI thus far has been relatively poor.
FDI has nonetheless been improving in recent years due to new investments in infrastructure.
[45]
Main Invested Sectors 2012, in %
Financial and insurance 36.0

services, real estate and
business services
Mining 30.9
Manufacturing 17.9
Transport, storage and 9.4

communication
Trade, catering, hotel 5.3

industry
However, there are a number of problems in South Africa, which may discourage investors.
There has been an increase in labor strikes in recent years, which rating agencies have warned
could further lower South-Africa's credit rating. Violent crime and corruption continue to be
widespread. Access to electricity is also increasingly problematic. Investors are also
concerned about the general direction of policy-making, in particular economic policy, and
structural reform issues.
So even as India woos the world with its Make in India program, South Africa wants Indian
firms to manufacture in the country, South African International Relations and Cooperation
Minister Maita Nona Masha bane said. In New Delhi for the India-Africa Forum Summit,
Masha bane said South Africa wanted to enhance economic partnership with India in a way
that was mutually beneficial for both the countries.
South Africa wants Make In South Africa as long as its beneficial to both the economies.
Case lets of Make In India

1)K9 Vajra: A test of the Make in India initiative
The Indian private sector is set to manufacture its first ever artillery gun, with L&T ready to
supply its K9 'Vajra' mobile howitzer to the Indian Army.
A look at the system.

The Gun:
[46]
The K9 Vajra is an indigenized version of a Samsung mobile howitzer. The gun is mounted
on a tracked platform, making it maneuverable over tough terrain. The 155-mm howitzer can
hit targets at a distance of 40km.
Its Purpose:
India has been lacking in artillery systems to counter Pakistan. The Vajra, being highly
mobile as it can move at speeds of over 60 km per hour, can be used at different points in a
battlefield, delivering a punishing eight rounds a minute into enemy territory. It can traverse
up to 450 km on its own, giving it devastating force multiplier ability.
Make in India:
The production of at least a 100 guns in India would not only bring in jobs and technical
knowhow but also be a test of the 'Make in India' initiative. The challenge will be to
showcase that India can produce a world quality weapon system at lower costs.
The X factor:
The victory for L&T to bag the Rs 4,500 cr contract is especially sweet as it won it under a
global tender. This means that no special favour was given to L&T for being an Indian firm
and international selection standards were followed.
2) In February 2015, Huawei opened a new R&D campus in Bengaluru. It had invested $170
million to establish the centre. It is also in the process of setting up a telecom hardware
manufacturing plant in Chennai. Also, in February, Marine Products Export Development
Authority said it was interested in supplying shrimp eggs to shrimp farmers in India under the
initiative.
3) In February 2015, Xiaomi began initial talks with the Andhra Pradesh government to begin
manufacturing smartphones at a Foxconn-run facility in Sri City. On 11 August 2015, the
company announced the first manufacturing unit was operational and introduced the
XiaomiRedmi 2 Prime, a smartphone assembled at the facility.
4) On 8 August 2015, Foxconn announced it would invest $5 billion over five years to set up
R&D and hi-tech semiconductor manufacturing facility to be set up in Maharashtra. Later,
General Motors announced that it would invest $1 billion to begin manufacturing
[47]
automobiles in the state.
5) On 18 August 2015, Lenovo announced that it had begun manufacturing Motorola

smartphones at a plant in Sriperumbudur near Chennai, run by Singapore-based contract
manufacturer Flextronics International. The plant has separate manufacturing lines for
Lenovo and Motorola, as well as quality assurance, and product testing.
6) In November 2015, Taiwan's Wistron Corp, which makes devices for companies such as
Blackberry, HTC and Motorola, announced that it would begin manufacturing the devices at
a new factory in Noida, Uttar Pradesh.
7) On 30 November 2015, the ministry of railways signed formal agreements with Alstom
and GE Transport worth Rs 40,000 crore ($5.9 billion) to set up locomotive manufacturing
factories in Madhepura and Marhaura in Bihar.
8) In December 2015, Micromax announced that it would put up three new manufacturing
units in Rajasthan, Telangana and Andhra Pradesh, at a cost of Rs 300 crore ($44 million).
The plants will begin functioning in 2016, and will employ 3,000-3,500 people each.
LIVE PROJECTS
The Industrial Corridors were launched to provide a conducive environment to the
manufacturers for their growth and development and to facilitate ease of doing business in the
country. The major industrial corridors in India are mentioned as under-
DELHI MUMBAI INDUSTRIAL CORRIDOR

The Delhi Mumbai Industrial Corridor (DMIC) was launched by the government in 2006
spans the six states of Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and
Maharashtra. The corridor project, being developed in co-operation with the government of
Japan, is one of the largest infrastructure projects planned in India, aiming to develop new
industrial cities as Smart Cities.
The DMIC project is proposed to be implemented on both sides of the 1483 km long
Western Dedicated Rail Freight Corridor between Dadri (UP) and JNPT (Navi Mumbai).
[48]
Initially, the following 8 Investment Regions/ Industrial Areas have been taken up for
development in the first phase of DMIC -
(i) Ahmedabad-Dholera Investment Region in Gujarat;
(ii) Shendra-Bidkin Industrial Park city near Aurangabad in Maharashtra;
(iii) Manesar-Bawal Investment Region in Haryana;
(iv) Khushkhera-Bhiwadi-Neemrana Investment Region in Rajasthan;
(v) Pithampur-Dhar-Mhow Investment Region in Madhya Pradesh;
(vi) Dadri-Noida-Ghaziabad Investment Region in Uttar Pradesh
(vii) Dighi Port Industrial Area in Maharashtra; and
(viii) Jodhpur-Pali-Marwar Industrial Area.
The master plans for all the nodes except Dadri Noida Ghaziabad Investment Region in
Uttar Pradesh have been completed and accepted by the State Governments.
State Cities/ Districts under the influence area of DMIC
Rajasthan Ajmer, Nagaur, Pali, Jhunjhunu, Jaipur, Bhilwara, Chittaurgarh, Kota, Jodhpur
and Udaipur
Madhya Pradesh Neemuch, Mandsaur, Ratlam, Dhar and Jhabua districts.
Gujarat Amreli, Bhavnagar, Palanpur, Mahesana, Ahmedabad, Vadodara, Bharuch, Surat,
Vapi and Valsad
Maharashtra Bhiwandi , Dahanu Road, Virar, Vasai Road, Diva and Jawaharlal Nehru Port,
Navi Mumbai, Pune, Nasik
Haryana Gurgaon* and Faridabad*
Uttar Pradesh Ghaziabad*, Noida*, Meerut
CHENNAI-BENGALURU-CHITRADURGA INDUSTRIAL CORRIDOR

The Chennai-Bengaluru Industrial Corridor (CBIC) project was initiated in December 2011
by the governments of India and Japan to improve the infrastructure in the Chennai and
Bengaluru. The 560 km corridor between Chennai Bengaluru Chitradurga will have an
Influence area spread across the states of Karnataka, Andhra Pradesh and Tamil Nadu.
The corridor plans to come up along Chennai, Sriperumbudur, Ponnapanthangal, Ranipet,

Chittoor, Bangarupalem, Palamaner, Bangarpet, Hoskote and Bangalore.
It is expected to boost commerce between south India and east Asia by enabling quicker
movement of goods from these places to the Chennai and Ennore ports.
[49]
CBIC, is being funded partly by the Japanese Bank for International Cooperation (JBIC)
and Japan International Cooperation Agency (JICA).
Phase-I of the corridor will extend up to Bengaluru from Chennai and it will later be
extended toAndhra Pradesh.
BENGALURU-MUMBAI ECONOMIC CORRIDOR (BMEC)

The Bengaluru-Mumbai Economic Corridor (BMEC) project was initiated in February 2013
in collaboration with the United Kingdom. The 1,000 km corridor would attract enhanced
investments in manufacturing sector and would lead to increased industrial activity in the
states of Maharashtra and Karnataka.
The corridor will start from Bengaluru, passing through Tumkur, Chitradurga, Hubli,
Dharwad and Belgaum (in Karnataka), Kolhapur, Sangli, Satara, Karad and Pune, and end in
Mumbai (in Maharashtra).
The BMEC will be developed on the model of the DMIC. The Union government has
appointed the
DMICDC as the nodal agency for the development of the project.
Actual work on the project is expected to commence in 2015
Recent example of make in India

Airbus Helicopters has awarded a contract to Mahindra Aero structures to make airframe
parts
for the AS565 MBePanther helicopter. These parts will be produced at the Mahindra facility
in Bengaluru. They will be shipped directly to the Airbus Helicopter production line in
Marignane, France where they will be integrated with the rest of the airframe assembly and
will form a critical part of the Panthers sold worldwide.
The contract positions Mahindra Aero structures as the first Indian company to receive a
direct manufacturing contract from Airbus Helicopters as a Tier 1 supplier. This is recent
initiative taken under make in India.
[50]
Conclusion:
It is the generation next cool trend to have new and innovative ideas and at the same time to
start working on it. India is all set to outperform all other nations on the world stage in the years
to come. Setting up of small businesses by these young entrepreneurs has boosted the Indian
economy. India is a home for almost 3100 startups starting per year according to the
NASSCOM report of 2015. If the growth is continued on the same pace then it is expected
that Indian tech startups will generate almost 2.5 lakh jobs in the next five years.
Initially, India was considered as the market for providing cheap labour to the world and for
export of Indian services in the field of IT. Due to this India has witnessed low product
development and innovation in the past. However, owing to the culture of startups and how
it has geared up to benefit the Indian economy, it is not the same anymore.
Indian government is also taking several steps to build an environment which is suitable
for startups, since small businesses can play a very important role to develop and
boost Indian economy in the future. Also, government is also setting up innovation labs at
various places which are similar to that of incubation centers in large national and foreign
universities. Considering the importance of role that the Indian startups are all set to play in
the growth of Indian economy, the amount of income and the huge number of jobs that can
be created by facilitating startups, even the market regulator Securities and Exchange Board
of India (SEBI) has also relaxed some rules to facilitate the flow of funds from the market to
the startups.
Hence, taking into consideration all the developments, it can be concluded that
indigenous startups will not only make the lives of the people easier through their affordable
and convenient services but will also act as a major booster for the development and the
progress of the Indian economy.
Make in India campaign is an initiative that attracts the industrialists to transform India into
a manufacturing hub that would help accelerate job creation. India can benefit temporarily
from outsourced manufacturing plants but it cannot stress it beyond a limit. It has caught the
imagination of people all over the world. However, the idea has earned the attention of a
good number of critics as well who like to dismiss it as a slogan which will lose charm. But
people behind it must not lose hope and must continue to move in stride to make India a
better economic country in the view of its own people first and then globally. It basically is
catering into all the important sectors of manufacturing in India and also tapping into new
areas. All this because this program is not just some government paperwork to get voters, it
[51]
is program that holds the future of India in its hands. Manufacturing in India is the prime
focus of this campaign, as manufacturing increases our country will become self dependent.
In international community India will arise as a hallmark country in product manufacturing
and technology transfer. There are a few backdrops of Make in India at this moment
however it is still growing and many country's economy have joined in, which surely shows
a bright future ahead. All the live projects of smart cities and rural development programmes
are leading to a better and powerful India. The major challenge for manufacturing in India is,
we are not quality conscious, we have too many rules in making the export happen, we also
need to take care of political problems getting in the way of countrys progress. No one can
predict the future of this campaign as to how long will it last or how much good will it do,
however there is a great chance of ensuring that India becomes one of the top manufacturing
country over the globe and increase job opportunities by expansion of new technology
which will replace conventional methods. Make in India is surely a start to achieve the long
term goal of Made in India.
[52]
SOURCES
www.makeinindia.com
http://economictimes.indiatimes.com/news/defence/k9-vajra-a-test-of-the-make-in-
india-initiative/articleshow/53015091.cms
http://corporatelawreporter.com/2016/01/06/make-in-india-policy/
http://www.business-standard.com/article/economy-policy/make-in-india-the-story-
so-far-116021200338_1.html
http://www.business-standard.com/content/b2b-chemicals/chemical-industry-to-gain-
from-make-in-india-initiative-115030500825_1.html
www.startupsuccessstories.com
www.techinasia.com
http://economictimes.indiatimes.com/news/defence/make-in-india-push-tasl-bell-
helicopter-to-collaborate-on-defence-modernization-
initiative/articleshow/53205779.cms
http://economictimes.indiatimes.com/industry/transportation/shipping-/-
transport/shipping-sector-attracts-636-million-under-make-in-
india/articleshow/53326524.cms
www.yourstory.com
http://m.dailyhunt.in/news/india/english/yourstory-epaper-yourstory/10-legal-
mistakes-made-by-startups-newsid-51331319
https://www.entrepreneur.com/article/252192
http://chatsbin.com/view/2438
www.forbes.com
http://economictimes.indiatimes.com/news/international/world-news/made-in-india-
vs-made-in-china-two-paths-towards-industrialisation/articleshow/47508023.cms
http://www.thehindu.com/sunday-anchor/sunday-anchor-make-in-india-vs-make-in-
china/article6533575.ece
http://en.portal.santandertrade.com/establish-overseas/south-africa/foreign-
investment
Forbes magazine top 10 startup ecosystem
Global startup ecosystem report by www.compass.co formerly startup genome
Chilie: Opportunities for startup by chilie government
[53]

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MET Institute of Computer Science

3 Startup Laws and regulatory aspects in India 7

Legal and Regulatory aspects of Make in India

2 Need for Make In India 35

3 Live Examples & Projects 40

Startup India is a flagship initiative of the Government of India, intended to build a

1. Till up to five years from the date of incorporation.

Structuring the Business Choosing a Business Vehicle: At the initial stages of

Securities Laws & Business Finance: Knowledge of Securities Laws becomes

Intellectual Property Law: If you are an organization that codes, or designs, or

Information Technology Law: When you establish your organization in todays

Contract Law: Contracts are indispensable tools of entrepreneurs. It wouldnt be an

Ways of Dispute Resolution: Disputes are inevitable in todays business world. It is

Important Agreement for Startups

Equipment/ Technology Lease

MOST COMMON LEGAL MISTAKES MADE BY STARTUPS

Wrong legal entity

Missing founders agreement

Non-compliance with securities laws

Missing regular tax payments

Not ensuring professional help for tax-related issues

5.Compliance regime based on self-certification: This is a very important move by the

6. Launching of Innovation Focused Programs for Students: The objective is to foster

7. Promoting Startups in the Biotechnology Sector: The objective is to foster and

9.Building Innovation Centres at National Institutes: The objective is to propel

13.Legal Support and Fast-tracking Patent Examination at Lower Costs: The

INDIAS MOST FUNDED IN 2015

Cab aggregator Ola $900 million Tiger global, Softbank, tiger

Online Classfields Quikr $150 million Tiger global ,Kinnevik, norwest

Four areas where improved policy impact the success of a Start-up:

Fig: Indian startup ecosystem comparison

Case Study: India

Launched in February 2015 by ShashankJogani, 22 and KavanAntani, 20, BananaBandy is a

Make in India is an initiative launched by the Government of India to encourage multi-

Prime Minister NarendraModi launched "Make in India" in a function at

Going ahead, the Indian manufacturing sector provides an excellent opportunity to

NEED for MAKE IN INDIA

49% FDI permitted in Insurance, Pension, defence sectors

FDI up to 100% in Teleports, Direct to Home, Cable Networks, Mobile TV,

Foreign equity cap of activities of Non-Scheduled Air Transport Service, Ground

100% FDI permitted in the marketplace model of e-commerce

FDI limit for Private Security Agencies raised to 74%

.INITIATIVES UNDERTAKEN TO FACILITATE THE EASE OF DOING BUSINESS

Road blocks in ease of doing business in India:

1. Automobile 2.IT sector

Passenger Vehicle are to increase at a Revival in demand for IT services from US

CAGR of 16% between 2013-20 and Europe

Increasing adoption of technology and

class branded products

Favorable economic and cultural Increase in domestic demand is set to boost

transformation and shift in attitudes and cloth production

lifestyle Favorable policies of government of India

sector to the Gross Domestic Product (GDP) earnings.

Development of 100 smart cities to facilitate infrastructure development

Indias advantage against China:

As Chinese factories move up the value-chain to hi-tech manufacturing, opportunities would

INDIA AGAINST SOUTH AFRICA

Financial and insurance 36.0

Transport, storage and 9.4

Trade, catering, hotel 5.3

Case lets of Make In India

A look at the system.

5) On 18 August 2015, Lenovo announced that it had begun manufacturing Motorola

DELHI MUMBAI INDUSTRIAL CORRIDOR