ENTREPRENEURIAL INDIAby

KPGM-TiE Report

ENTREPRENEUR’S VIEWPOINT Availability of finance.

unavailability of easy and sufficient finances.

Policy framework from Government.Bureaucracy, Corruption, poor implementation of existing policies.

Access to market.Formidable barriers to high growth Entrepreneurship.

STATE’S VIEWPOINT

Partnership approach Cost benefit matrix Prioritization

ENTREPRENEURSHIP IN INDIA Negatives:1. Mostly need based rather than opportunity

based.2. Formidable barriers.3. Inconsistent rules and lax enforcement.

Positives:1. Liberalization and globalization.2. High growth rate.3. New public policies and opening up of new

areas.

ENTREPRENEURIAL INDIA 2009 Focuses on redesigning Indian

entrepreneurial ecosystem. Fostering high growth

entrepreneurial activity. Regulatory and policy framework. Assessment of 6 Indian states.

ASSESSMENT :- PUNJAB

PUNJAB :- POLICY FRAMEWORK 68% of annual food production of

India. Policy highlights:

1. Synergy between agricultural and industrial sectors.

2. No CLU charges or license fees.3. Dedicated annual fund of Rs 1.5 billion.4. Creation of land banks.5. Extended policy incentives.

PUNJAB :- POLICY FRAMEWORK IT/ ITES policies :- Exemption of taxes, VAT

standardization. Agro policy :- Subsidies. Notification textile policy :- Reduction in

electricity. Biotech policy :- Promotions, institutes. Micro and SME policy :- Subsidies.

PUNJAB :- POLICY IMPACT

VC fund for IT Industry

ASSESSMENT :- GUJRAT

GUJRAT :- POLICY FRAMEWORK Leading industrial states in India. Policy highlights

1. Specific Investment regions.2. Mega projects to facilitate large scale

industrialization.3. Promotion of cluster development

approach.4. Financial assistance for up gradation.5. Public Private Partnership Model.

GUJRAT :- POLICY FRAMEWORK IT/ITES Policy :- SEZ, Investment up to Rs 14

billion Bio tech policy :- private partnerships,

investments. Gems and Jewellery policy :- Financial

assistance, Jewellery parks. Textile and Apparel policy:- Investment,

Institutions. Micro and SME policy :- Subsidy, R&D.

POLICY IMPACT

ASSESSMENT :- DELHI

DELHI :- POLICY FRAMEWORK Large presence of manufacturing

units. Policy highlights :

1. Relocating and phasing out polluting industries.

2. Promotion of skilled and high tech industries.

3. Cluster approach.4. Public Private Partnership.5. R&D and education hubs.6. Business Facilitation Mission.

DELHI :- POLICY FRAMEWORK IT/ITES Policy :- employment, e- governance,

promotion of entrepreneurship, investment. SEZ policy :- Exemption from taxes,

investment. Transport policy :- affordable and non

polluting means. SME policy :- single window clearance,

export promotion and investment.

POLICY IMPACT

ASSESSMENT :- TAMIL NADU

TAMIL NADU :- POLICY FRAMEWORK Leading industrial and

manufacturing state. Policy highlights:

1. Expanding manufacturing sector.2. Efficient and industrial infrastructure.3. Financial assistance.4. Business Facilitation Act.5. Cluster development.6. E-Governance system.

TAMIL NADU :- POLICY FRAMEWORK IT/ITES policy :- 50% exception, unrestricted

movement of capital, IT parks. Handloom and Textile policy :- Hi-tech

weaving parks, registration of products. Biotech policy :- Biotechnological

enterprises zone, single window facility, industry status, investment.

SME policy :- encourage agro based industries, new industrial estates, financial assistance.

POLICY IMPACT

ASSESSMENT KARNATAKA

KARNATAKA :- POLICY FRAMEWORK Silicon valley of India. Policy highlights :

1. Development of sector wise industrial zones.2. World class infrastructure facilities.3. Performance linked packages.4. Development of skilled manpower.5. Public Private Partnership.6. Self employment7. Investments.

KARNATAKA :- POLICY FRAMEWORK IT/BPO Policy :- continuous and

uninterrupted supply of power and water, Venture capital assistance, Exemptions from taxes.

Biotechnology policy :- exemptions on stamp duty and taxes, mega projects undertaken.

SEZ policy :- single point clearance, industrial townships, exemptions on electricity and other cess.

SME policy :- price preference, credit guarantee fund trust, incentive packages.

POLICY IMPACT

ASSESSMENT :- MAHARASHTRA

MAHARSHTRA :- POLICY FRAMEWORK. Leading industrialized and urbanized

areas of India. Policy highlights :

1. Quality infrastructure.2. Quality competitiveness.3. New industries in C, D and D+ areas.4. Special capital incentives.

MAHARSHTRA :- POLICY FRAMEWORK. IT/ITES policy :- lower property rates,

exemptions, minimal sales tax, non fiscal incentives.

Biotech policy :- fiscal benefits, biotech parks, special incentives.

Tourism policy SEZ policy :- captive power generation. SME policy :- special institution for SME’s,

special capital incentives.

POLICY IMPACT

CREATING AN ENTREPRENEURSHIP CULTURE Attempts at various levels to

promote directly or indirectly entrepreneurship.

Slow growth, highly regulated market – high growth market.

Identify leading practices across 6 states.

Inclusive growth, improved efficiency and market alignment.

CREATING AN ENTREPRENEURSHIP CULTURE

CONCLUSION Improve quality, availability and accessibility

of financing. Enhance business growth potential of

existing companies. Promote wider geographic penetration. Emphasize critical role of state governments. Strengthen entrepreneurial values and

attitudes. Select and implement leading policies of 6

states covered.

GLOBAL EXPERIENCES

6,00,000 firms formed in America every year.

America, Singapore have created a conducive atmosphere for entrepreneurship.

Singapore has the world’s least effective tax rate.

4 out of 10 Filipinos (Philippines) are engaged in business.

Israel is Silicon Valley 2.