India 2018

Industry 333
fostering a culture of innovation. It is, therefore, incumbent on the Government
of India to nurture emerging talent and entrepreneurship as part of the larger
goal of nation building. The objective is to make India a nation of job creators
instead of job seekers. The initiative aims at fostering entrepreneurship and
promoting innovation by creating an ecosystem that is conducive to growth of
Startups.
The initiative strives for providing a long due impetus to the
entrepreneurial setup in economic landscape of India. 19 action items under
the Action Plan spanning across areas such as "Simplification and handholding",
"Funding support and incentives" and "Industry-academia partnership and
incubation" were announced under which active support is provided to Startups.
Startup India Hub
To create a single point of contact for the entire Startup ecosystem and enable
knowledge exchange and access to funding. Startup India Hub was
operationalised in 2016 to resolve queries and handhold Startups. The digital
version, Startup India Online Hub was launched in 2017 to serve as a platform
where all the stakeholders of the Startup ecosystem can collaborate and synergize
their efforts. Startup India web portal and mobile app was developed and
operationalized in 2016.
Foreign Direct Investment
Capital inflows from other countries, particularly in the nature of investment
are very important contributors to augmenting availability of capital for funding
of infrastructure, industries and other economic ventures. Equity inflows are
more stable and bring in new management practices and technology together
with investment. For encouraging FDI inflows, the FDI policy is reviewed on
an ongoing basis, with a view to make it more investor-friendly. In recent past,
the government has brought FDI policy reforms in a number of sectors.
Introduction of composite caps
Government has now introduced composite cap of foreign investment. Sectoral
cap i.e., the maximum amount which can be invested by foreign investors in an
entity, unless provided otherwise, is composite and includes all types of foreign
investments, direct and indirect, regardless of whether the said investments
have been made under Schedule 1 (Foreign Direct Investment), 2 (Foreign
Institutional Investor), 2A (Foreign Portfolio Investor), 3 (Non Resident Indian),
6 (Foreign Venture Capital Investor), 9 (Limited Liability Partnership), 10
(Depository Receipt) and 11 (Investment Vehicle) of FEMA. The measure
provides full fungibility in difference types of foreign investments.
Establishment of branch office, liaison office or project office
For establishment of branch office, liaison office or project office or any other
place of business in India if principal business of applicant is defence, telecom,
private security or information and broadcasting, it has been provided that
approval of Reserve Bank of India is not required in cases where government