BJP’s landslide victory: What’s in it for startups?
Padrea wishes to present some views on, ‘How BJP’s win in Uttar Pradesh will affect the startup ecosystem.’ Padrea is neither in support nor against any political party while presenting its views.
“UP elections was much more than just assembly poll for one of the 29 states, it was the most challenging electoral test for BJP under the leadership of Narendra Modi since 2014 elections. The results from UP elections are clear indications that the political pulse of the nation is changing and all that the masses seek is development.
When all this is of great interest for anyone even remotely interested in politics, I think this also has lot of positive indications for economic growth which will benefit entrepreneurs at all levels.
Stability: As mentioned earlier this election was the biggest electoral test for Modi Government since 2014 elections. Political stability is essential for investments and team Modi has clear focus on development. Since 2014 and particularly after the demonetisation move there was lot of uncertainty about political stability in long term. Although there is still lot of time before 2019 and it is too early to comment but considering the current scenario BJP has much stronger chances for a 2nd term under the leadership of PM Modi and this should help drive more investments.
Effects of so called “Joomlas”: Since 2014 the Modi government has launched a series campaigns and policies be it Make in India, Startup India, Digital India or Swachh Bharat effects of which are yet not visible enough. Being an optimist i believe all these take time to show results. Now that BJP has gained control over nearly 50% states in India and has strong control over both the houses at centre this is creating a perfect alignment of power at all levels which forms an optimum environment for implementation. As these policies start showing results this will set the pace of economic engine leading the nation towards prosperity thus,creating more opportunities for entrepreneurship.
Overall I believe political stability, effective implementation of policies along with the other factors such as demographic dividend, ever growing entrepreneurship ecosystem and support available to entrepreneurs, Improving Digital Infrastructure and internet penetration and other factors build great conditions for doing business in India.” – Ajay Mittal, Founder at MeraWorkshop.com
“With a landslide victory for BJP in the recently concluded UP Assembly elections, people are hopeful that the state will get its dues in the form of points mentioned in the party’s manifesto. One of the most attention drawing point (for me) in the manifesto in the mention of a 1,000 Cr startup fund to be allocated to the state. This mention of the fund brings back a recent memory (More than a year now) of the BJP Central Govt. announcing a 10,000 Cr startup fund in the name of ‘Start Up India, Stand Up India’. Till date I haven’t seen any news, whatsoever, that any startup has benefited from it or even come close to getting funded. I am still (eagerly) waiting for these funds to reach somewhere (if not UP).
Coming to the point in focus here of the possible benefits of a BJP Govt. in UP to the startup ecosystem. The Govt. might ease certain taxations that were hindering e-Commerce players to make inroads into the state. Beyond that I don’t see any immediate/direct benefits coming through. As a suggestion, if the Govt. can ease the taxation norms for MSME there will be more reported transactions in the ecosystem (specially the service sector), where vendors try to push cash payments to avoid taxes and the service-providers oblige in order to retain a client in a super competitive market. Apart from that I personally feel that the struggle for Startups in Tier-II cities will continue till the Govt. steps up to provide them infrastructure that can compete with Startup hubs like Bengaluru, Mumbai, and Delhi.” – Satyam Gupta, Serial Entrepreneur, www.satyamgupta.com
“Considering what PM Modi’s government has done for the startups in the past 2 years in power its very evident that they truly believe in the fact that entrepreneurship is the key to eradicate unemployment and the Startup India initiative is really picking up pace and creating a noise in the country about entrepreneurship. The BJP government believes that there should be many more Bengaluru- and Hyderabad-like cities for startups in states like Bihar, Jharkhand and Uttar Pradesh. Therefore, Uttar Pradesh has emerged as the top contender to host the National Startup Fest. Originally planned to be held in Hyderabad, the industry department is now considering Uttar Pradesh as its preferred choice, with the industrial city of Kanpur the likely venue. The government wants to take the startup drive to tier II and tier III cities, where the infrastructure and ecosystem for entrepreneurs still needs to be created.” – Baibhav Agarwal, Director at Padrea.