For the first time in the history of Independent India, a new Ministry of Entrepreneurship has been created which will help to produce more entrepreneurs and business men in India. After taking over as the new Prime Minister of India, Modi seems to be making all the right moves, that too in a hurry!
The National Skill Development Corporation India (NSDC)
has now being converted into a ministry [please see update at end of post] and Sarbananda Sonowal, MP from Assam has already been declared Minister of State for Skill Development and Entrepreneurship (Independent Charge).
This new ministry of Modi Government aims to work with a unique public-private partnership model (PPP), thereby encouraging and helping skills development related with entrepreneurship.
They are aiming to produce 500 million skilled personals by 2022, who are capable enough to start their own business and thus produce an avalanche of new jobs in every sector all over the country.
Indian business community is cheering this bold step in fostering the culture of entrepreneurship in India and empowering new entrepreneurs with the necessary skills and training.
Countries like US, Israel & Hong Kong already have such Government sponsored programs to encourage entrepreneurship, and this was very much required in our country.
Previously, the Government of India had initiated several steps in promoting entrepreneurship and skills development but the efforts were not focused. We had Ministry of Micro, Small & Medium Enterprises (MSME) working on small business owners meanwhile National Skill Development Agency (NSDA) was a separate department for human resource.
However, this is for the first time that a new ministry has been carved out, which will work exclusively for entrepreneurship and skill development. As a Minister of State has been assigned for this task, it is expected that the goals would be met with more seriousness and dedication.
Some of the challenges which the current startups and entrepreneurs are facing right now:
- Complicated Tax structure
- Foreign Direct Investment
- Incentives and soaps for Angel Investment
- Simplification of company laws
- Complexities of licenses, permissions and compliances
- Difficulty in getting approvals for venture capital and incubators
- Lack of proper infrastructure for entrepreneurs
- Complex regulations for ‘exit’
BJP in their election manifesto had promised to unleash new reforms for entrepreneurs and business men, and this step by the government gives out clear signals that they are pretty serious.
We hope that the ministry lives upto the expectations and it manages to create more entrepreneurs and businesses all over the country.
Update: We have received updated communication from NSDC, and as per the latest information, NSDC has not been ‘converted’ into a ministry. National Skill Development Corporation (NSDC) was formed to achieve the target of skilling / up-skilling 150 million people by 2022 by fostering private sector initiatives in the skill development space. An objective of skilling 150 million by 2022 Indian means 45000 trainees being certified and graduated every day for the next 10 years. Although the Ministry of Entrepreneurship has been formed, there is no reporting structure formulated yet. We will keep you updated as we receive more information. “