In his Independence Day speech in 2015, Prime Minister Narendra Modi announced an ambitious scheme, 'Start-up India, Stand up India', to encourage entrepreneurship among the youth of the country. Addressing the nation from the Red Fort, he said, "We must be number one in start-ups." Later, the scheme was formally launched on January 16, 2016. Since then one year has passed, and now when we look back, we must admit that the reality seems miles away from the promise. In the last year, we have made hardly any progress in making the start-up ecosystem better.

Facts and figures point this out. According to a recent report, while the number of start-ups being founded increased 87 percent in 2015, the number dropped 67 percent in 2016. Funding also saw a decline of 47.7 percent. Since its launch, the Start-up India programme received around 25,000 enquiries and 1,200 applications out of which only 500 entities were recognised as start-ups and just five received funding as on December 7, 2016. So where is the progress? These data sets, along with a recent start-up 'Deadpool' list prepared by a data analytics firm, signal a deteriorating health of our start-ups.

Meanwhile, a new survey found that majority of start-ups surveyed want the benefits under the Start-up India scheme, which now apply only to those incorporated after April 1, 2016, to be extended to all those registered in the last five years. Another burning issue against which they have raised voice is unnecessary questioning and harassment due to tax inspectors' lack of understanding about start-up valuation. Also, they have complained that they have to deal with tax notices and scrutiny exercises even if they don't have any income or revenue. Start-ups, particularly those from technology domains are also against the newly introduced norm requiring them payment of service tax on services procured from overseas. The upcoming Budget should address these concerns.

Today, government policies and programmes for skill development, innovation, funding, etc. to promote start-ups and SMEs are a dime a dozen, but what is miserably lacking is any thorough and in-depth effort to implement them effectively. Unfriendly banks, bankers' insistence on collateral, high interest rates, bureaucratic red-tape, corruption, difficult licensing procedures, taxation issues, delayed payments by larger companies and government departments, etc. are some of the lingering challenges that have never been really addressed. The government must get down to these nitty gritties if the Start-up India dream is to be realised.

I invite your opinions.