After the “Delhi Startup Policy” was approved by the state cabinet on May 5, Chief Minister Arvind Kejriwal said that the aim is to develop business leaders and entrepreneurs from the young generation, with a target of making Delhi the “startup destination of the world”.
It should be noted that the policy is linked to the Delhi Budget 2022-23, which aims to create two million jobs by 2027 through various interventions and business promotion.
This policy aims to create an enabling ecosystem for people to start businesses and take advantage of a variety of support services such as fiscal and non-fiscal incentives, collateral-free loans, and free consultation from experts, lawyers, and chartered accountants, among other things.
As reported, the CM said that by 2030, the state wants to stimulate, assist and support 15,000 companies, creating new job opportunities. He also announced the formation of a 20-member task group made up of government officials and industry and trade professionals who will assist startups with registration and other tasks.
Additionally, the state government decided to establish entrepreneurship classes and the “business blasters” programme in schools as well as colleges.
The goal, according to the policy framework, is to create an environment for an innovation-based economy and to nurture entrepreneurial spirit through a strong support system.
While explaining, Kejriwal stated that the Delhi government will provide youth with both fiscal and non-fiscal incentives. For example, the government will cover up to 50% of the rental cost of a startup office.
The government will also contribute to the payment of a portion of employee salaries and reimburse their patent, copyright, and trademark fees, as well as assist them with internet bills and other expenses.
Additionally, Kejriwal said that his government will also provide collateral-free loans and interest-free loans, as well as incentives for incubation centres and fabrication labs.
Furthermore, the Delhi government stated that fiscal incentives for startups include reimbursement on lease rentals of 50% or up to 5 lakh per annum, grants for filing patents of up to 1 lakh per annum and up to 3 lakh per annum, for Indian and international firms respectively.
This also includes reimbursement for exhibition stall or rental cost of 100% for women/underprivileged/differently-abled individuals and 50% for others up to 5 lakh per annum and a monthly allowance towards operational or employee costs of up to 30,000 per month.
Kejriwal said, “When a youth wants to build a business, they give 10% time to their business and 90% to paperwork and official formalities. We will overcome this problem by empanelling agencies and professionals to aid these startups for free.”
It was also said that there will be panels of lawyers, experts, CPAs, and other professionals who will provide free services to startups and will be compensated by the Delhi government.
According to the Delhi CM: “Our teams will help startups in marketing, developing their social media, taking their services to the market, investor approach, taxation, filing, loan work and the like.”
It was said that the Delhi government will provide students at Delhi government-run institutes with leave. For example, if a student at a Delhi government institute develops a product or a startup that they want to focus on, authorities will give them a two-year leave to work on it.
Kejriwal also added that students can start their own businesses and then return to school to finish their degrees.
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