The startups are completely different from traditional business as the sense of risk taking is less in numbers inIndia. Most of the startups are internet based and the chances of competition are very high because the internetvnullifies geographical distances. while starting any start-up, the first and foremost requirement is the idea which has to be new, fresh, innovative, technically sound, free of legal issues, socially acceptable, and needs to have the potential to make a lot of money.

India has a very large middle class with a fair amount of spending power. Unless someone understand their needs and aspirations, products might not be the success. The difference in perceptions and actual requirements is a big reason for startups not getting enough customers.

Any venture needs capital to start it off, money flow is an important ingredient for the startup. There are less numbers of investors interested in investing for Indian start-ups but students from premier institute easily gets the funds for their venture.

In India, the lack of concrete data for any industry, demography, and segment is almost always inadequate, inaccurate or both. In what’s left, it is dated and obsolete.

A lot has been done to reduce red tape which speed up the process to start a new business in India. Foreign investor interest in India can be attributed to various factors but the biggest one is the consumer growth backed by the mobile revolution.

Many steps has been taken by the government to deliver which they have promised during the election campaign. Various steps has been taken in direction of encouraging entrepreneurship in the country. Initiatives like Make in India, Digital India, and M-SIPS, which have already signaled to investors across the world that India is open to change and means only business. Many investors and entrepreneurs welcome the move taken by the government to ease of doing business, which helps to change the perception of investors. According to the expert that the change in the Companies Act, to allow loans from Directors family, is a shot in the arm for young start-ups scouring for funds.

A lot many start-ups have come up nowadays and all are providing tempting job opportunities and services to the Indian people. However, many doubts the success of the start-ups in India as the fate of entrepreneurs who come out of the debris of fallen startups is often not pretty well. Many believe that there is a lot which has been talked about increasing business but too little have been done so far. Government can only fosters innovation best when it provides higher education, basic infrastructure and funds. Lack of knowledge, enterprising spirit, rational approach and risk taking ability are few characteristic which create the
barrier in succeeding.

According to the experts, the current business climate in the country with fringe elements creating fear coupled with poor infrastructure deters the potential investor to invest. Despite the financial instruments and ease of business which government has introduced but there are many hurdles which discourage the investors.

If India wants to become the next silicon valley and encouraging young entrepreneurs to start-up their ventures. It needs to address some of the core issues like funds, infrastructure, and research institutes to come forward to offer cutting edge technologies. Indian education system needs to effect large-scale change and promote entrepreneurship in the country. Experts are also pointing out the high registration and tax also keep away the investor from the investment and which needs to be standardised.

What really matter for the start-up in India is to have as many as investments and funds to create an ecosystem for it. Foreign investment is the need of the hour and lot of encouragement from government is required. To make it easier for start-ups to operate in India, government should promise the passage of GST and bankruptcy law to help make investing in India safer rather than via intermediary countries. A tax sop for investors in startup would be a good first step. Government should also give an extension of tax moratoriums so that start-ups can build business.