While India has been seeing this increasing trajectory of entrepreneurs and new start-ups

over the last five years, 2016 has been a major milestone year for all of the key stakeholders
in the Indian ecosystem including government, educational institutions, entrepreneurship
support organizations, investors and entrepreneurs to seek and provide support in
sustaining the biggest hurricane of entrepreneurship to date.

Our software industry, powered predominantly by first generation, middle class entrepreneurs has grown from virtually nothing
to over USD 88 billion within two decades, targeting to reach USD 225 billion by 2020, creating 10 million jobs and accounting
for 26 per cent of exports. This is a great example of the entrepreneurial impact that entrepreneurs can make on our economy
and society.

Entrepreneurs are the largest creators of wealth and employment globally and the Indian Government has realised the
importance of creating an enabling environment that encourages largescale growth of entrepreneurial activity. Creating new
jobs for 25 million entrants into our job stream annually can challenge any country in the world, leave alone India. Our best bet
would be to catalyse massive growth in entrepreneurial activity, so that a large percentage of these job seekers become job
creators!

Fortunately, the software industry virus has spread to many other industries, giving them the self-confidence to emulate our
success and compete globally and win on quality. Pharma, auto components, telecom and many other sectors are making
waves internationally. Erstwhile hide bound Indian organisations have become hugely innovative. Angel Investing and Venture
Capital have begun to take root and a nurturing entrepreneurial ecosystem is rapidly taking shape. What we now need is
successful entrepreneurs and business persons, industry bodies and policymakers to recognise the impact of a flourishing and
vibrant entrepreneurial ecosystem, and step in to do their bit.

Industry is akin to agriculture, unless the soil has been properly treated and is fertile, nothing will grow. Even then, if you sow a
100 seeds, 20 may sprout. These need to be replanted and cared for in a different way. With the best of care, only half of these
20 will survive and maybe five will bear good fruit. The process of venture creation is no different. Without an enabling
framework of policies and procedures that encourages people to take risks and become entrepreneurs, our best and brightest
will not venture forth and build innovative, scalable enterprises, creating wealth and employment. If our successful
entrepreneurs and business people do not become Angels, and nurture and mentor other entrepreneurs, these fledgling
organisations will struggle to succeed. If the best VC firms around the world do not find India a hospitable environment, these
early stage enterprises will find it difficult to scale and compete at a global level. And if we do not have energetic, well-regulated
capital markets and exit mechanisms, venture capital and private equity will not invest in India.

GOVERNMENTAL SUPPORT

The year started with Prime Minister Narendra Modi launching the "Startup India" action
plan to provide entrepreneurs with various subsidies, as well as relaxed norms for starting up
businesses in India. The government of India's Innovation arm, Niti Aayog the National
Institution for Transforming India also announced there will be up to $2 million in support
for those setting up and modernizing existing start-up incubators across the country as
well as to promote entrepreneurship right at the high school level.
Budget 2017: A hit or a miss for entrepreneurship in India?

The biggest day on India's policy calendar had a slew of announcements directed at the middle class and the rural sector, but
few that shone a spotlight on the burgeoning startup ecosystem in India. India's payment industry, however, has much to cheer
about with the proposed regulatory board under RBI, allowing for more representation from industry experts in finalizing policies
for digital payments in India.

Although direct cash handouts were few and far between for the startup community in this year's Budget, a striking
announcement has come in the form of tax breaks for companies operating as emerging businesses in India.
"Period of claiming profit-linked tax exemption for startups has been increased to 7 years from 5 years earlier,"
said Finance Minister Arun Jaitley in his fourth Union Budget speech on February 1. "The rate of tax for MSMEs
with turnover of less than Rs 50 crore also has been reduced to 25%, a move that is estimated to benefit 6.67
lakh companies in India," he added.

However, certain quarters also found the lack of mention of Angel Tax for early-stage startups in the Budget disappointing, while
others expressed reservations around it being less inclusive even within the startup ecosystem with financial services given
greater priority over other sectors.

With announcements anchored around radical domestic policy action - demonetisation - becoming the focal point of Budget
2017, initial reactions from various stakeholders in the entrepreneurship landscape pointed to a largely positive trend towards
greater adoption of initiatives for the sector.
REFERENCES

http://economictimes.indiatimes.com/small-biz/policy-trends/budget-2017-a-hit-or-a-
miss-for-entrepreneurship-in-india-startups-respond/articleshow/56917397.cms
http://www.cnbc.com/2016/11/16/india-entrepreneurship-is-at-an-all-time-high.html
http://www.nasscom.in/entrepreneurship-and-india?fg=138885