The Commerce and Industry Ministry will organise a ‘Startup Fest’ in Hyderabad in September, with a view to showcase innovation and provide a collaboration platform.

The Department of Industrial Policy and Promotion (DIPP) has requested Prime Minister Narendra Modi to inaugurate the programme, an official said.

The main objective of this fest is to galvanise the startup ecosystem and to provide national and international visibility to the budding entrepreneurs in India.

“We have planned several sessions. Venture capital funds are also expected to participate in this,” the official said adding the event is important part of strengthening the startup ecosystem.

The Startup Action Plan announced by the Prime Minister talked about such fests.

To bolster the ecosystem in India, the government has proposed to introduce startup fests at national and international stages.

As many as 571 budding entrepreneurs have filed applications as on June 24, with the DIPP for recognition as innovative startups to avail tax breaks and other benefits.

In January, the Prime Minister unveiled a slew of incentives to boost start-up businesses, offering them a tax holiday and inspector raj-free regime for three years, capital gains tax exemption and Rs 10,000 crore corpus to fund them.

India has the third-largest number of startups globally. To boost financing, a 20 per cent tax on capital gains made on investments by entrepreneurs after selling own assets as well as government-recognised venture capitalists is also exempted.

Commerce and Industry Minister Nirmala Sitharaman has asked the Finance Ministry to consider raising tax holiday for startups to seven years to encourage budding entrepreneurs.

Source: The Economic Times