The government is planning a separate Act to promote start-ups, in line with Prime Minister Narendra Modi‘s ‘Start Up India, Stand Up India’ campaign, announced on August 15, said MSME Minister Kalraj Mishra.

“The proposed Act is being initiated by the Department of Industrial Promotion & Policy. My ministry officials have also held meetings with them in this regard,” Mishra told BusinessLine .

Financing focus According to reports, the proposed Act will tackle issues related to registration, funding, compliance, etc. While start-ups are mainly mushrooming in the technology sector, the ‘Start up India, Stand-up India’ campaign aims to promote bank financing for young entrepreneurs across sectors, including technology, defence and railways. MSMEs are a crucial focus area of the campaign, Mishra said, adding that the biggest impediment for start-ups and new small enterprises was collateral-free loans. The Minister ruled out any threat from online ‘discount sales’ of products, mostly branded, to small manufacturers or retailers. “Small businesses should not be wary of online platforms. Instead, they should try to digitally connect their businesses with the entire country,” Mishra said, adding that his Ministry was also thinking of taking ‘khadi’ products online.

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