This presentation discusses the role of government, government policies and their effects on entrepreneurial development in India.

1. Presented by:
Shivangi Agrawal
Semester III (MBA – M52)
MONIRBA, University of Allahabad

2.  Role of Government In Entrepreneurial
Development
 Government Policies
 Effects Of Government Policies
 Conclusion
 References

4.  Creates conducive business environment.
 Promote financial help via Venture capitals,
Angel Investors and business houses.
 Promoting establishment of incubators.
 Develop ‘Entrepreneurial Ecosystem.’

5. Economic
Development
Government
Policies
Entrepreneurship

8.  Constraints:
- Government Regulation and Policies.
- Entrepreneurial Education.
- Transfer and Commercialisation of R&D.
 Enablers:
- Commercial Infrastructure
- Market Dynamics
- Ease of Access To Physical Infrastructure
- Cultural and Social Norms
-National Experts Survey

9.  Be the enabler and enable:
- infrastructure
- easy taxation
- fund raising
- research.
 Attract Investments.
 Business-friendly laws and a functional,
streamlined court system.
 Avoid regulations like licensing requirements
that discourage innovation.

11.  Attainment of Economic Development
 Create Large Scale Employment
Opportunities
 Promote Balanced Regional Development
 Reduce Concentration of Economic Power

12. Government
Policies
Industrial
Policies
Economic
Reforms
Financial
Sector
Reforms
Tax Reforms

13.  First Generation Reforms (1991-2000)
 Second Generation Reforms (2000-2001 onwards)
 Third Generation Reforms (2002 onwards)
 Fourth Generation Reforms (Unofficial)

14.  Liberalisation: shows the direction; making
the economy more market and service-
oriented and expanding the role of private
and foreign investment.
 Privatisation: shows the path; process under
which the state assets were transferred to
the private sector.
 Globalisation: shows the ultimate ‘goal’;
unrestricted cross border movements of
goods and services, capital and the labour
force.

15. Reform is not the aim of the economy,
But reforming the economy is the aim.

16.  Industrial Policy Resolution, 1948
 Industrial Policy Resolution, 1956
 Industrial Policy Statement, 1969
 Industrial Policy Statement, 1973
 Industrial Policy Statement, 1977
 Industrial Policy Resolution, 1980
...continued

17.  Industrial Policy Resolution, 1985 & 1986
 NEW INDUSTRIAL POLICY, 1991
 MSME Sector
 FDI Policy Measures
 Ease of Doing Business
 Make In India
...continued

18.  Start-Up India

19.  De-reservation of the Industries (except 8)
Presently two:
 Atomic energy and nuclear research.
 Railways.
 De-licencing of the Industries (except 18)
Presently five:
 Aero space and defence related electronics.
 Gun powder, industrial explosives and detonating
chemicals.
 Tobacco, cigarette and related products.
 Dangerous chemicals.
 Alcoholic drinks.

20.  Promotion to Foreign Investment
 Abolition of MRTP Limit
 Location of Industries
 Compulsion to convert loans into shares
abolished.

21.  Schemes for establishing and developing
enterprises:
 PM Employment Generation Programme.
 Credit Guarantee Trust Fund for Micro &
Small Enterprises
 Credit Linked Capital Subsidy Scheme (For
Tech Upgradation)
 SFURTI- Scheme for Funding of Regeneration
of Traditional Industries
 Micro and Small Enterprises-Cluster
Development Programme

22.  Recent Initiatives:
 Udyog Aadhar Memorandum- to promote ease
of doing business
 Employment Exchange for Industries
 Framework for Revival and Rehabilitation of
MSMEs
 ASPIRE (Promoting Innovation and Rural
Entrepreneurs)- setting up a network of
technology to promote start-ups for
innovation and entrepreneurship in rural and
agriculture-based industry.

23.  Liberalized and Simplified FDI Policy for Ease
Of Doing Business in India.
 26% increase in FDI, and
 31% increase in FDI Equity Inflows by
December 2015.

24.  Major Steps:
 Online and Single Window Systems
 Facilitation Cells and Incubators
 Unified Portals for registrations
 Introduction of Individual State Ranking
 Requirement of only three documents for import and
export.
 Budget 2016-2017:
 Proposed amendment in Companies Act to improve
enabling environment for start-ups.
 ‘Ek Bharat Shreshtha Bharat’: connect people through
exchanges in varied areas, including trade.

25.  Launched in September, 2014
 To boost Entrepreneurship, in manufacturing
and also in infrastructure and service
sectors.
 Vision: Attract Capital and Technological
Investment
 Objective: Job Creation and Skill
Enhancement in 25 key sectors of economy.

26.  Key Policies:
 Ease of doing business
 Getting away with archaic laws
 100 Smart Cities
 Disinvestment from PSUs.
 Skills and Jobs for youth, etc.
 Major Challenges:
 Creating healthy business environment
 Removal of unfavourable factors
 Lack of world class R&D
 More focus on MSMEs

27.  Four pillars of Make In India:
 New Processes
 New Infrastructure
 New Sectors
 New Mindsets
 Major Steps:
 Invest India: National Investment Promotion and
Facilitation Agency
 Investment Facilitation Cell
 Start-up India: To boost entrepreneurship
 Atal Innovation Mission (AIM): Innovation Promotion
Platform
 Self-Employment and Talent Utilization (SETU): Techno-
Financial, incubation and facilitation programme.

28.  For supporting financial needs of small and
medium enterprise sector and promoting
start-ups and entrepreneurship:
 India Aspiration Fund under SIDBI: for VC Funding to
MSME
 SIDBI Make In India Loan For Small Enterprises (SMILE):
Quasi-equity and term based short-term loans, on
liberal terms.
 Micro Units Development Refinance Agency (MUDRA)
Bank: Development and Refinance to Micro-Units.

29.  Aims: Turn India’s youths from ‘Job seekers
to job creators.’
 Major Features:
 Start-up India Hub
 Mobile App and Portal
 Promotion of awareness regarding Intellectual Property
Rights
 Providing funding support
 Income Tax exemption for 3 years
 Build innovation centres at national institutes

30.  During 2015-2016
 Insolvency and Bankruptcy Code, 2015
(Bill): seeks to amend laws relating to
reorganisation and insolvency resolutions of
corporate firms, partnership firms and
individuals in a time bound manner.

31. Objectives:
 Maximize the asset value of insolvent and
bankrupt firms.
 Promote entrepreneurship and availability of
credit.
 Establishing an Insolvency and Bankruptcy
Fund.

32.  Implemented in July, 2017.
 One Nation- One Tax
 Uniform GST registration.
 Subsume all indirect taxes at Centre and
State level.
 Increase productivity through ease of
doing business.
 Reducing economic distortions.

33.  State and Central taxes subsumed into
GST are:
• VAT
• Purchase Tax
• Octroi & Entry Tax
• State Cesses/Surcharges
• Central excise duty
• Central sales tax.

34.  Positive Impact:
 FDI Inflows
 Ease of Doing Business Ranking improved from 142 to
130, as per World Bank and World Economic Forum
 Motivating people to become entrepreneurs
 India’s competitiveness improved as per Global
Competitiveness Index, by 16 positions to 55th
position.
 Still a long way to go.

35. The government is new, but not the
country. Not the entrepreneurs. Policies last
longer than government and we need more
clock-builders than time-tellers.

36.  Global Entrepreneurship Monitor Reports
 Indian Economy: Ramesh Singh
 Indian Economy: Datt and Sundharam
 Science Journal of Business Management
2014
 Various Economic Surveys of India
 National Expert Survey Reports, GEM