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CS Executive · Setting Up of Business, Industrial and Labour Laws · Startups and its Registration

Ananya, a founder in Pune, launched a software venture in 2025 and wants to know the broad purpose of the Startup India Action Plan announced in January 2016. Which statement best describes it?

The Startup India Action Plan is a roadmap built on three pillars: simplification and handholding, funding support and incentives, and industry-academia partnership and incubation. It aims to build a strong startup ecosystem, not to grant blanket tax exemption, government jobs or restrictions on foreign investment.

  1. AA roadmap with measures on simplification and handholding, funding support and incentives, and industry-academia partnership to build a startup ecosystemCorrect
  2. BA plan that makes every new company exempt from all taxes for its entire life
  3. CA scheme that provides government employment to graduates of engineering colleges
  4. DA rule that bars foreign investors from investing in Indian startups

Explanation

The Action Plan is organised around three pillars: simplification and handholding, funding support and incentives, and industry-academia partnership and incubation. It is not a blanket tax exemption, an employment scheme or a bar on foreign investment. The tax-exemption option is wrong because incentives are conditional and time-limited.

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