It was a telling comment when Prime Minister Narendra Modi on January 16 said before a large gathering of 20-something and 30-something founders of start-up companies, “This is not the first time that this auditorium at Vigyan Bhavan is filled, but this is the first time that it is filled with so much energy.”

Department of Industrial Policy and Promotion (DIPP) Secretary Amitabh Kant, the brain behind the ‘Startup India campaign’, added to the PM’s observation: “I have not seen such dynamism in the 38 years of my career.”

Modi had held a similar marathon campaign for his ‘Make in India’ drive in September 2014, but that was with the traditional who’s who of India Inc. Even then the PM had commented on the huge crowd, but not beyond.

Industry representatives suggest that the National Democratic Alliance (NDA) government at the Center is perhaps looking at new-economy and start-up companies as a fresh ally of sorts. The long list of sops unveiled at the ‘Startup India’ event was part of a package, a company executive pointed out.

FICCI President Harshavardhan Neotia described the incentives for the start-up world as “an initiative to encourage entrepreneurs who are not from business families”. But he added that in February the government would organize a big week-long event with India Inc on ‘Make in India’.

“So, I don’t think the government’s present engagement should be seen as the new economy replacing its (the Center’s) relationship with traditional businesses.” Ajay Shriram, Chairman & Senior Managing Director of DCM Shriram and former president of Confederation of Indian Industry, believes the government is not replacing one with the other. “I think the government is adding to its association with the new economy. It’s a deep addition and the government’s approach to tap the energy of young entrepreneurs is in the right direction.” He added the traditional business had its own focus and could not be ignored.

Source: Business Standard