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SECURE SYNOPSIS: 20 January 2017

 


SECURE SYNOPSIS: 20 January 2017


NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.


General Studies – 1;


Topic: Urbanization – problems and remedies

1) Do you think the rise of private-cab services in metro cities indicates failure on part of governments to allocate resources for effective public transport system? Discuss the advantages of public transport, focusing more on safety aspects. (200 Words)

Livemint

Introduction-

Indian metropolitan cities are witnessing huge inward migration particularly in search of employment. Though women constitute large chunk of the labor force, public transport has been major impediment in their free movement across the city.

Whether rise in private cab services indicates failure of government to allocate resources for effective public transport?

Arguments in favor-

  • Usually public transport has fixed hours of service and thus could not be used at odd hours like in midnight or early morning.
  • The reach of public transport has been limited mostly to the core areas of the city. The peripheral areas have been poorly served where most of the migrants live.
  • Public transport lacks ‘Last Mile Connectivity’ due which most of the women are made to take longer routes.
  • Public transports like Buses and Local/Metro services are inadequate in terms of quantity and most of the time falls short of quality (cleanliness, hygiene etc) thus compelling commuters to go for cabs.
  • Public transport has proved to be inadequate in ensuring safety of women. Other passengers do make entry into coaches specially reserved for women in the night-time.
  • Finally private cab services wouldn’t have prospered had there been efficient and quick public transport present in the cities.

Arguments against-

  • Cab services provide ‘End to End’ connectivity which suits to the need of commuters and also saves his/her time.
  • Cab services have prospered even at places where public transport is good on accounts of factors like flexibility, low prices and smooth travel.
  • The public transport services like Delhi Metro have been successful beyond imagination and such projects are coming up in cities like Bengaluru, Jaipur, Pune etc.

Advantages of public transport-

  • Co-passengers ensure vigilance on the activities of any errant passenger that ensures safety.
  • Presence of Driver and Conductor, ie Government Servants ensure help in case of any problem that leads to increased faith in the working of public transport.
  • Pre-determined path of public transport creates a feeling of safety as no different route will be taken to take advantage of situation like empty roads, strange places etc.
  • There are always help guidelines/contact numbers, women attendants, First Aid help etc provided in public transport which provides safety cushion to the passengers.
  • An effective public transport will have interface for schedule and route information, which will enable commuters to plan their travel according to their comfort, and also enable their family to track their whereabouts.
  • An effective transport facilitates less congestion, smooth traffic flow and hence punctual ensuring timely arrival of the passengers to their next stop or destination.

Conclusion-

Growing India cities needs ever improving public transport facilities. The private services like cabs have their own advantages and should be seen as complementary rather the competition to public transport.

 


General Studies – 2


Topic: Effect of policies and politics of developed and developing countries 

2) It is said that even though the new president is well disposed towards India, his efforts to change America’s trajectory will have huge economic and political consequences for India. How should India prepare to deal with the US? Examine. (200 Words)

The Indian Express

Introduction-

With the ‘America First’ policy of new President of USA, its relationship with the world may turn to different directions. India which has witnessed good relations with the USA in last decade may have some positives as well as some negatives consequences of this policy.

How the new President could change the trajectory of America?

The new President of USA has won by promising to curb immigration into the United States and removing those who were staying in USA illegally. He has threatened to impose “extreme vetting” on visitors from the Muslim world. He argues that American workers are victims of economic globalization. He believes the US taxpayers pay too high a price for American military alliances abroad. He has dismissed the North Atlantic Treaty Organization, the powerful seven-decade-old Euro-Atlantic alliance, as “obsolete”. Trump demands that US allies in Asia, Japan and South Korea take a larger share of the defence burden.

 

Concerns for India-

  • Trump’s stricter immigration rules for H1B visa is a cause of worry for India’s export led IT industry.
  • His views to reduce corporate tax may shift American manufacturing companies from other countries like India back to America thereby reducing employment opportunities in such countries.
  • Trump’s plans to revise and even scrap regional trade partnership agreements like TPP would help India in diversifying its trade as India was left out of TPP.
  • He has non-serious approach on issues like climate change which may hamper the global efforts to curb and minimize ill consequences of climate change.
  • If he improves US relations with Russia, India would not have to undertake balancing acts to please both the leading powers.

How India should prepare to deal with unpredictable policies of new President of USA?

  • India will have to quickly come to terms with the historic shift in America’s approach to economic globalization under Trump.
  • India needs to end its defensive crouch on external economic engagement and re-position itself to cope with the structural changes that Trump threatens to engineer in the global economic order. As in the economic, so in the political domain, India will have to stop being defensive.
  • Though regulation of H1B visa could affect India, India could leverage its market potential and trade opportunities in getting favorable business policies from America.
  • American president is wants to re-energize the shale gas, natural gas and coal sector to make America energy self-sufficient. India too could benefit from the opening of US oil and gas sector that would diversify India’s import and stabilize global oil prices.
  • Trump is firm on curbing radical Islamism and eradicating terror outfits in different parts of the globe. Thus India could collaborate in fighting terror and could pressurize Pakistan to eliminate state sponsored terrorism.
  • Trump is determined to curb increasing Chinese global influence in geo-politico-economic matters. Thus India could reinvent its policies that would give strategic advantages vis-à-vis China.
  • While Russia and China are resisting American dominance in Afghanistan and Syria, India could play important role in bringing amicable solutions in these regions as India has carried out ground work in Afghanistan and enjoys great goodwill in those nations.

Conclusion-

The new president of America would collaborate whole heartedly with India only if American interests are served. Thus India needs to identify common areas which could offer mutual help and benefits India too.

 


Topic: Issues relating to development and management of Social Sector/Services relating to Education,

3) From all findings and reports, it’s now very clear that higher education system in India is failing. In your opinion, on priority basis, what should government do to revive higher education system? Critically examine. (200 Words)

The Indian Express

Introduction-

The National Knowledge Commission Report to the Nation (2006-9) states that: “There is a quiet crisis in higher education in India which runs deep”. There are three widely acknowledged criteria for judging an education system: Access, Equity, and Quality. Indian higher education system has proved to be inadequate in achieving those.

Problems in Indian Higher Education System-

  • Entry into premier higher education institutions is riddled with various kinds of inequity (only marginally relieved for some people by lower-caste reservations). For example, the currently almost indispensable intensive entry examination preparation in coaching classes (or private tuition) with high fees is often out of reach for poor students. (NSS data suggest that in 2014 nearly 60% of male students in the 18-24 age group cite financial constraints or engagement in economic activities as the reason for discontinuing higher education).
  • There is extreme faculty shortage, apart from stark deficiencies in the matters of library books, laboratory facilities, computer and broadband internet, classrooms and buildings, etc. As much as 30 to 50% of faculty positions are vacant in many institutions. Many faculty posts are filled by under-qualified “temporary” recruits.
  • Two-thirds of enrolment in higher education is in private institutions (the majority of them, according to NSS data, say that there were not enough government institutions nearby or where they could get admission). Fees at private institutions are more than double those charged at government institutions. In parts of western and southern India with a large expansion of for-profit private colleges with high ‘capitation fees’ and politically managed loans from public banks, politicians have entered into the business of higher education in a big way, turning colleges into lucrative degree-giving factories.
  • The (erstwhile) Planning Commission had estimated that only 17.5% of our graduates are employable. Many of the graduates lack even basic language and cognitive skills. In the Information Technology sector the main chamber of commerce, NASSCOM, estimates that even for engineering graduates, only 20% of graduates of engineering colleges in India are employable in IT companies.
  • In terms of quality of post-graduate research, while some of it is no doubt significant, over all our research quality is much below the world average. It has been widely noted that India does not have a single university in the top 200 in the world rankings according to theQS World University Rankings.
  • Also, India has one of the poorest Gross Enrolment Ratios (GER) for higher education in the world. According to 2010 data, India’s GER was a meager 13.8 percent, compared with theglobal average of around 26 percent. Australia, Russia and the U.S., to name a few examples, have GERs upwards of 75 percent.

Steps to revive higher education-

  • Towards a Learning Society- As we move towards a learning society, every human activity will require contributions from experts, and this will place the entire sector of higher education in sharp focus. Although the priorities, which are being assigned today to the task of Education for All, will continue to be preponderant, the country will have to prepare itself to invest more and more on higher education and, simultaneously, measures will have to be taken to refine, diversify and upgrade higher education and research programmes.
  • Industry and Academia Connection- Industry and Academia connect necessary to ensure curriculum and skills in line with requirements. Skill building is really very crucial to ensure employability of academia to understand and make sure good jobs (keeping in view knowledge + skills+ global professional skills = good jobs).
  • Incentives to Teachers and Researchers- Industry and students are expecting specialized courses to be offered so that they get the latest and best in education and they are also industry ready and employable. Vocational and Diploma courses need to be made more attractive to facilitate specialized programs being offered to students. Incentives should be provided to teachers and researchers to make these professions more attractive for the younger generation.
  • Innovative Practices- The new technologies offer vast opportunities for progress in all walks of life. It offers opportunities for economic growth, improved health, better service delivery, improved learning and socio-cultural advances. Though efforts are required to improve the country’s innovative capacity, yet the efforts should be to build on the existing strengths in light of new understanding of the researchinnovation-growth linkage.
  • To mobilize resources- The decline in public funding in the last two plan periods has resulted in serious effects on standards due to increasing costs on non-salary items and emoluments of staff, on the one hand, and declining resources, on the other. Effective measures will have to be adopted to mobilize resources for higher education. There is also a need to relate the fee structure to the student’s capacity to pay for the cost. So that, students at lower economic levels can be given highly subsidised and fully subsidised education.
  • Coming of Information Age- The world is entering into an Information Age and developments in communication, information and technology will open up new and cost-effective approaches for providing the reach of higher education to the youth as well as to those who need continuing education for meeting the demands of explosion of information, fast-changing nature of occupations, and lifelong education. Knowledge, which is at the heart of higher education, is a crucial resource in the development of political democracy, the struggle for social justice and progress towards individual enlightenment.
  • Student-Centred Education and Dynamic Methods- Methods of higher education also have to be appropriate to the needs of learning to learn, learning to do, learning to be and learning to become. Student-centred education and employment of dynamic methods of education will require from teachers new attitudes and new skills. Methods of teaching through lectures will have to subordinate to the methods that will lay stress on self-study, personal consultation between teachers and pupils, and dynamic sessions of seminars and workshops. Methods of distance education will have to be employed on a vast scale.
  • Public Private Partnership- PPP is most essential to bring in quality in the higher education system. Governments can ensure PPP through an appropriate policy. University Grants Commission and Ministry of HRD should play a major role in developing a purposeful interface between the Universities, Industries and National Research Laboratories (NRLs) as a step towards PPP. Funding to NRLs by the government should ensure the involvement of institutions of higher education engaged in research activities to facilitate availability of latest sophisticated equipment.

 


Topic:Bilateral, regional and global groupings and agreements

4) “Given their objective geopolitical circumstances, the rational priority for Japan and South Korea should be the development of close defence and intelligence cooperation rather than quibbles over statues.” In the light of recent events that have taken place in northeast Asia, elaborate the statement. (200 Words)

The Hindu

Background-

The cause of this friction is a statue, which is a symbol of the tens, possibly hundreds of thousands of women who were forced to service the Japanese military’s World War II brothels. Known as “comfort women”, these former sex slaves were “recruited” from Korea, China and parts of Southeast Asia. Although there are only around 40 surviving comfort women in Korea, they are a potent reminder of Japanese wartime atrocities as well as what many consider to be the lack of sincere atonement on the part of Japan. The statue in question was erected opposite the Japanese consulate in the South Korean city of Busan in late December and has led to Tokyo recalling its ambassador from Seoul, as well as suspending high-level economic policy discussions with its Korean neighbour.

However the need of the time is to resolve the internal differences and work for mutual cooperation. Both countries are facing uphill task in resisting Chinese domination in the East Asia region.

  • Both South Korea and Japan see North Korea as belligerent neighbor in North Korea. Both are cooperating with the USA to contain North Korea’s nuclear program. In fact South Korea is in more critical situation as it is yet to resolve border dispute with North Korea and any wrong move on the part of North Korea would harm South Korea first. Thus both these nations need healthy relations between them to avoid any conflict so that there is no divergence of actions while dealing with Korea. In such scenario both countries have high potential for cooperation in areas like strengthening military ties, intelligence sharing and bilateral relations.
  • Japan is already involved in a dispute with China regarding several areas in South China Sea. China is already making artificial islands and militarizing them, keeping in view any future provocation. Japan’s pacifist constitution does not allow it to engage in any conflict with its adversaries. This calls for need to chart a peaceful agreement for solving the strategic disputes. Also, Japan too needs to include the incoming of a new US president in its future policies.
  • Both Japan and South Korea are technology powerhouses and economies driven by strong export in areas like Automobile, machinery etc. Thus both countries can cooperate and supplement each other in their core areas which would benefit both the countries. On the other the hostile relations would reduce any chance of cooperation on technology fronts.

Conclusion-

Asia-Pacific region has attained high strategic importance in the recent years on account of Chinese aggression in South China Sea and its deteriorating relations with its neighbors, North Korea’s nuclear program and America’s Pivot to Asia policy. In such volatile situation, Japan and South Korea need to resolve their differences and work for better and stabilized Asia-Pacific region.

 


 

Topic:  Pressure groups and formal/informal associations and their role in the Polity

5) In the light of massive protests in Tamil Nadu demanding revoking of the Supreme Court judgement banning jallikattu, do you think the union government should nullify the effect of the Supreme Court judgment through an ordinance? Justify. (200 Words)

The Hindu

 

Introduction:-Tamil Nadu is caught in a near-spontaneous mass upsurge in support of jallikattu, the bull-taming spectacle held during the time of the harvest festival of Pongal. Instead of the traditional form of one man against one animal, latter-day jallikattu is a mass-participant ritual of hundreds of men chasing a bull and trying to hold on to its hump or stop it by pulling at or twisting its tail.

When the Supreme Court banned this spectacle that took a heavy toll on both the animals and the human participants, it did so after attempts at its regulation and the orderly conduct of this “sport” were deemed a failure. 

Efforts that are now on to nullify the effect of the Supreme Court judgment through the ordinance route thus carry a serious risk of judicial reproach.

Article 123 of the Constitution enables the President of India to promulgate an ordinance if neither House of Parliament is in session and “circumstances exist, which render it necessary for him to take immediate action”. The recent issue of removing ban on Jallikattu imposed by Supreme court generated a demand to issue ordinance to lift the ban.
Effects of nullifying SC order

  • This carries serious risk of Judicial reproach that maligns the sacred Indian Judicial process. And will also create friction between executive and judiciary.
  • It will give wrong message to people that agitation against SC decision will lead to nullifying SC order through ordinance route and hence it will undermine superiority of SC.
  • By promulgating the ordinance the centre infringes the judicial expansive reading of article 21 of the fundamental rights which is about right to life ( which mandates that animals too have the right to dignified life).
  • Govt passing an ordinance under public pressure would set a precedent that the govt can be pressurised into passing of ordinances that violate SC judgements
  • But on the other hand in democracy public will is the main force behind any policy making hence undermining public will is against Democratic principle.

Way forward:
The wide rage in people and larger public sentiment qualifies for issuing ordinance to lift the ban but at the same time the ordinance must contain provision related to making this sport free of cruelty to animals and injuries to the participating youth along with this a vigilance machinery to be formed to keep watch upon this sport so that it will not breach the provision.
So in this way rule of law must not be undermined in name of tradition and customs mainly which maligns moral fabric of humanity.

 


Topic: India and its neighborhood- relations

6) Critically examine how has India’s demonetization affected its neighbouring countries. (200 Words)

The Hindu

Introduction:-

When a strong regional currency takes the demonetisation route, people in the entire region will face problems. The banning of 500 and 1,000 currency notes by India has been a hotly debated topic in Nepal, Bhutan, Bangladesh and even in Myanmar, especially the areas bordering India.

Demonetisation effect on neighboring economies-

Nepal – Most affected

  • Transacts daily with India in INR for its necessary supplies, and shortage of new currency has caused shortage of essential commodities and affected Indo-Nepal trade 
  • Also needs INR for international exchange to other currencies, but have banned all financial transactions in Indian rupees and termed new notes as “unauthorised and illegal”
  • Lack of reliable information -> Nepal Govt. is not sure of the amount of INR currency its citizens hold (esp. in informal networks) and to exchange them would be an ardent task in short term (As per Nepali Rashtra Bank ~ INR 35 mn in 500 and 1000 rupee notes are present within its formal financial network)
  • Security concerns -> RBI reluctant to freely provide currency due to possibility of their unscrupulous usage (terrorism – used by ISI, black money generation)

Bhutan – Not much affected

  • Bhutanese currency is pegged with Indian currency at 1:1, and Indian currency is legally tradable in Bhutan, and Bhutanese Central Bank offers currency at least hassle without much hoarding (also better synergy with RBI, Govt.), still short term shortage would occur
  • Decrease in number of religious travelers to India to visit Bodh Gaya and monasteries, also also loss of revenue from tourism to Bhutan Govt. due to less inflow of Indian travelers

Trouble for Bangladesh, Sri Lanka and Myanmar

  • Allows use of rupee as a parallel currency because of their trust in India’s financial robustness and policy stability, but this move has rattled them
  • Would affect small and marginal traders (border haats) along the borders the most who generally deals in INR Cash.
  • Bangladeshis, SL visiting India for medical purposes are facing major problems to arrange INR funds, and are stuck with high denomination older notes.
  • But, would hit the extremists badly esp. in Myanmar as the currency they have hoarded has become just a piece of paper

Pakistan – Blow to its vested interests-

  • Reduced smuggling of goods/weapons and terrorist activity in Kashmir region owing to non-availability of new currency to fund their heinous motives and also made the fake-note printing press maintained by ISI worthless
  • A marginal currency appreciation owing to weeding out of black money, fake money out of formal system to some extent would further increase the cost of imported goods from India. Also it would lead a push towards gold in these economies (safe-haven)
  • In short term, demonetization would definitely affect the broader economy of neighborhood nations to some extent, and the move is also seen as against the principles of ‘Neighborhood First’ policy. Also, Govt. in these nations would now would be cautious regarding freely trading in INR, and instead may push for use of their own currencies.

Topic: Important International institutions, agencies and fora- their structure, mandate; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections

7) The Government of India has finally decided to ratify the International Labour Organisation (ILO) Convention 182 on the worst forms of child labour and Convention 138 on Minimum Age of Employment. Discuss significance of ratification of these conventions. Also examine why it took so long for India to ratify these conventions. (200 Words)

The Hindu

Introduction:-

Preamble: “the effective elimination of the worst forms of child labour requires immediate and comprehensive action.”

Convention: The Convention is a legally binding agreement between countries on a specific issue calling for particular actions. 

ILO Convention 182: Adopted in June 1999, the ILO Convention 182 on the Worst Forms of Child Labour sets an international legal standard to protect children from some of the most extreme forms of exploitation. 

The Worst Forms of Child Labour:

  • Child slavery (including the sale and trafficking of children, debt bondage, and forced recruitment for armed conflict)
  • Child prostitution and pornography
  • The use of children for illicit activities (such as drug trafficking)
  • Any hazardous work which is likely to harm the health, safety or morals of children

ILO CONVENTION 138:-

  • The Convention concerning Minimum Age for Admission to Employment, is an Conventionadopted in 1973 by the International Labour Organization. It requires ratifying states to pursue a national policy designed to ensure the effective abolition of child labour and to raise progressively the minimum age for admission to employment or work. The convention (number C138 of ILO) replaces several similar ILO conventions in specific fields of labour.
  • Child labour perpetuates poverty and illiteracy. At present as per NSSO Survey 4.98 million child labour are present in India which suggests urgent need to address this issue.

Significance of the ratification:

  • ILO convention 182 on prohibition of worst form of child labour will deal with organized crimes such as human trafficking, drug mafia, debt-bondage, child prostitution which are rampant in South Asian countries especially in India as per UNICEF Report. The ratification will bring focus and specific provision to curb these issues to reduce child abuse and criminal activities.
  • ILO convention 138 on minimum age of employment will fix the age to 18 years so no child below 18 year age can be employed in any form of employment. So this provision has potential to remove menace of child labour from India.

Reasons for delay in ratification:

  • Lack of moral courage, social empathy and political will on policy maker’s side are the prime reasons behind more than 17 years delay to ratify them.
  • India’s socio-economic condition which inherited poverty and transferred to the next generation which forced the child to do domestic works in place of opting education. So onus lies on state that state didn’t addressed the issue of poverty and illiteracy adequately.
  • The convention 182 , 138 could not be ratified so far because it mandates the age of 18 years for prohibition of children from employment in specified hazardous occupations whereas according to the Child Labour (Prohibition & Regulation) Act, 1986, the minimum specified age for employment in the hazardous occupations is 14 years. But the new act amended in 2016 States that adolescent (14-18age) can’t be employed in hazardous work hence now India can ratify it in it’s complete form.

Conclusion:-

Child labour is the worst form of social evil and socio-economic problem that takes away the basic human right of children to develop. As children are regarded as future of nation investment in their development can be regarded as investment in nation’s future development so such investment in safe childhood will make India safer place to live especially for children.

 


General Studies – 3


Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. 

8) Critically evaluate performance of union government’s Startup India, Stand Up India campaign. (200 Words)

Livemint

Introduction:

Government’s ambitious ‘Startup India, Stand Up India’ campaign aimed at boosting entrepreneurship marked its first year anniversary on January 16. The Startup India initiative had received only 1,368 applications by mid-December 2016, of which only 502 were recognized as startups by the Department of Industry Policy and Promotion (DIPP)

What is “Startup India, Stand Up India” campaign all about?

Start-ups and entrepreneurship are critical to India’s efforts to restart private investment into the economy, in the face of risk aversion, stalled or slow investments from corporate India. Start-up India’ initiative was launched in January 2016 by Prime Minister Narendra Modi in a move to help start-ups and catalyse entrepreneurship.

  • The Start-up India Action Plan lists out a comprehensive set of structural and regulatory reforms – Income tax exemption, easing compliance through reduction of regulations and having fixed qualifications as to what a ‘start-up’ is.
  • The action plan also provided an 80% waiver on patent filing fees by start-ups and advisory services, It also created a Rs.10,000 crore fund-of-funds which is to be managed by professionals drawn from the private sector.

 

Why the scheme has not been able to meet the expectations?

  • A tax break of three years has been given in the scheme. Anyone who has business sense knows that only a few of start-ups will be profitable in the first three years and so this handful can avail themselves of the tax break.
  • When it comes to the ‘fund of funds’ under the initiative, Rs500 crore has already been provided as fund corpus in 2015-16 and Rs. 600 crore has been earmarked for 2016-2017. Cumbersome procedures to access funds from the Rs. 10, 000 Cr. corpus have, however, made the plan a non-starter and Sidbi has committed only Rs. 129 crore to VCs so far so the progress has been slow.
  • Under the scheme, bank only puts in 15% of the total corpus, while it is the VC that has to bring the remaining 85% to the table. And, this year, VCs have struggled to raise that kind of money—as a result, funding has almost halved.
  • There is also the government’s requirement that participating investors have to be registered with the Securities and Exchange Board of India. But some of the biggest VCs aren’t, and the government has essentially shut them out.
  • There is still no exemption is MAT (Minimum Alternate Tax) which could’ve helped businesses to cut losses.
  • A lot of entrepreneurs and investors think that demonetization and the lack of exits in start-ups by investors are adding to the gloom; After demonetisation, the investors are afraid to exit their investment due to slump in the IPO (initial public offering) market.
  • The scheme sets up an ‘Inter-Ministerial Board’ led by the Department of Industrial Policy and Promotion which ‘validates’ the innovative nature of an enterprise, thereby qualifying it as a start-up – an involvement of government in this ecosystem that is hardly desirable.
  • It also exempts starts-up from inspection under a fixed number of labour laws — six to be specific. But, there are about 45 laws at the central level and about four times this number at the state level. The Centre needs to work with the States to ensure a smooth rollout of the benefits under the Action Plan and avoid discord between policies at the two levels.
  • The Action Plan requires an enterprise or partnership to be innovative by developing and commercialising a new product or service — a step to promote truly innovative ideas. But it institutes an inter-ministerial body led by DIPP to examine whether an enterprise is ‘innovative’.
  • It also requires a ‘recommendation’ from an incubator setup by the government or be supported by an incubator in a post-graduate institution recognised by the government — this need for validation and recommendation goes against the very steps the Action Plan takes to reduce government involvement. This additional layer of bureaucracy could slow down the starting up process and needs to go.

 

Way ahead:

Around 800 start-ups founded after 2011 have shut shop already, signaling a deteriorating health of the sector. The year 2015 had seen an 87% increase in the number of startups being founded, the number dropped by 67% in 2016. Funding has also decreased in 2016 by around 47.7%.

A year on since the launch of Startup India Stand Up India campaign, the mood is slightly muted, the momentum slowed a bit and the talk shifted from bombastic projections of crossing Silicon Valley to more realistic targets of making India an innovation hub. But entrepreneurs and investors acknowledge that after the January 16 event last year, the needle on entrepreneurship has certainly dramatically moved. Over the last year there was lot of out-of the box thinking and a sense of direction given.

This year’s Budget to be announced next month is expected to be a big one for start-ups. The startup ecosystem is expecting the government to announce initiatives to support them like: Widening of the tax-free regime to five years from three years. 

Conclusion:

While initiatives like start up certification, roping in bodies like CBDT to give tax breaks to entrepreneurs, setting up incubators and tinkering labs have been lauded there is a lot more that could have been done. While the progress is slow, the ecosystem feels much supported as the government put light on their struggles and achievements. However, there is a lot more that can be done in programming and implementation of start-up India action plan.

Start-up India is consistent with the PM’s call for innovation when he launched Digital India. The Start-up India Action plan is a good start to this – but will need continued support and evolution to make this a true, deep revolution for the youth of India.