New Delhi [India], August 9 (ANI): India’s startup ecosystem continues to thrive, with a significant milestone of over 1.4 lakh entities recognized as startups by the Department for Promotion of Industry and Internal Trade (DPIIT) as of June 30, 2024. Among these, an encouraging 67,499 startups have at least one woman director, underscoring the growing role of women in entrepreneurship.
According to the Ministry of Steel, the government’s efforts, spearheaded by the Startup India initiative launched in 2016, have been instrumental in fostering innovation and creating a robust startup ecosystem across the country. The initiative has led to the creation of more than 15.53 lakh direct jobs as of June 30.
Over the past two years, the number of DPIIT-recognized startups has surged across various states and union territories (UTs).
To build a robust ecosystem for fostering innovation, startups, and investment in India’s startup ecosystem, the Government launched the Startup India initiative on January 16, 2016. Under the eligibility criteria outlined in the G.S.R. notification 127 (E) dated February 19, 2019, the Department for Promotion of Industry and Internal Trade (DPIIT) recognizes entities as ‘startups’ within this initiative. Here are details of various government programs to promote startups nationwide:
Startup India Action Plan, unveiled on January 16, 2016, this plan includes 19 action items covering areas like “Simplification and handholding,” “Funding support and incentives,” and “Industry-academia partnership and incubation.” The plan established the foundation for government support, schemes, and incentives aimed at creating a vibrant startup ecosystem in India.
Startup India: The Way Ahead, launched on January 16, 2021, during the 5-year celebration of Startup India, this plan focuses on enhancing ease of doing business for startups, increasing technology’s role in executing reforms, building stakeholders’ capacities, and enabling a digital Aatmanirbhar Bharat.
Startup India Seed Fund Scheme (SISFS), recognizing the critical need for capital at the early stages of a startup, this scheme provides financial assistance for proof of concept, prototype development, product trials, market entry, and commercialization. A budget of Rs 945 crore has been sanctioned under the SISFS Scheme for four years starting from 2021-22.
The Government established Fund of Funds for Startups (FFS) Scheme with a corpus of Rs. 10,000 crore to address startups’ funding needs. DPIIT monitors the scheme, while the Small Industries Development Bank of India (SIDBI) operates it. The fund has supported startups at early, seed, and growth stages, catalyzing the raising of domestic capital, reducing dependence on foreign funds, and encouraging new venture capital funds.
Credit Guarantee Scheme for Startups (CGSS) provides credit guarantees for loans extended to DPIIT-recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and Venture Debt Funds (VDFs) under SEBI-registered Alternative Investment Funds. The scheme aims to offer credit guarantees up to a specified limit against loans given by Member Institutions to eligible DPIIT-recognized startups.
Since 2016, the Government has implemented over 55 regulatory reforms to enhance ease of doing business, ease of raising capital, and reduce compliance burdens for the startup ecosystem.
Central Ministries/Departments are directed to relax prior turnover and experience conditions in public procurement for all DPIIT-recognized startups, provided they meet quality and technical specifications. Additionally, Government e-Marketplace (GeM) promotes procurement from startups.
Startups are allowed to self-certify their compliance under nine Labour and three Environment laws for a period of 3 to 5 years from incorporation.
Startups incorporated on or after April 1, 2016, can apply for an income tax exemption. Recognized startups granted an Inter-Ministerial Board Certificate are exempt from income tax for three consecutive years out of the first ten years since incorporation.
The Government has classified startups as ‘fast track firms,’ enabling them to wind up operations within 90 days compared to 180 days for other companies.
DPIIT-recognized startups are eligible for exemption from provisions under Section 56(2)(viib) of the Income Tax Act, effective from 2019.
Startups can benefit from fast-tracked patent application examinations and disposal. The Government’s Start-ups Intellectual Property Protection (SIPP) initiative allows startups to file patent, design, and trademark applications through registered facilitators by paying only statutory fees. The Government covers facilitators’ fees, and startups receive an 80 per cent rebate on patent filings and a 50 per cent rebate on trademark filings compared to other companies.
Launched on June 19, 2017, this online platform connects all stakeholders of India’s entrepreneurial ecosystem, including startups, investors, mentors, academic institutions, and government bodies.
A key objective of the Startup India initiative is to connect India’s startup ecosystem with global ecosystems. This is achieved through international Government-to-Government partnerships, participation in global forums, and hosting international events. Startup India has established bridges with around 20 countries to promote cross-collaboration and provide a soft-landing platform for startups from partner nations.
This online platform highlights the most promising startups in India, chosen through various programs and displayed as virtual profiles. These startups, known for their innovative solutions in sectors like Fintech, HealthTech, and EdTech, have emerged as leaders in their respective fields.
Constituted in January 2020, this council advises the Government on building a strong ecosystem for innovation and startups to drive sustainable economic growth and generate large-scale employment opportunities.
The National Startup Awards recognize outstanding startups and ecosystem enablers that develop innovative products, scalable enterprises, and solutions with high potential for employment generation or wealth creation, and measurable social impact. Finalists receive handholding support across various tracks, including investor and corporate connect, mentorship, regulatory support, and more.
This unique initiative encourages competitive federalism and fosters a flourishing startup ecosystem by facilitating states to learn and replicate good practices and by highlighting state policy interventions.
This weekly one-hour program on Doordarshan features award-winning or nationally recognized startups, showcasing their success stories.
Held around National Startup Day on January 16, this week-long event brings together startups, entrepreneurs, investors, and other stakeholders to celebrate entrepreneurship and promote innovation.
Under the ASCEND initiative, sensitization workshops on startups and entrepreneurship are conducted across the North Eastern States to build capacity and knowledge on entrepreneurship and support a robust startup ecosystem in the region.
Developed in collaboration with SIDBI, Startup India Investor Connect Portal connects startups with investors, enabling early-stage startups across the country to showcase themselves to leading venture capital funds.
The Mentorship, Advisory, Assistance, Resilience, and Growth (MAARG) program under the Startup India Initiative facilitates access to mentorship for startups nationwide.
MeitY Start-up Hub (MSH), established under the Ministry of Electronics & Information Technology (MeitY), this nodal entity connects India’s deep tech startup infrastructure, supporting startups and incubators in scaling and market outreach.
TIDE 2.0 Scheme, Launched in 2019, the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme promotes tech entrepreneurship through financial and technical support to incubators, focusing on emerging technologies like IoT, AI, and Blockchain.
MeitY has operationalized these centers in various areas of national interest to drive self-sufficiency and innovation in emerging technologies.
Biotechnology Industry Research Assistance Council (BIRAC) under the Department of Biotechnology supports biotech startups across various sectors, including clean energy and emerging technologies, through project-based funding and incubation support.
Launched by MeitY, this program supports existing and upcoming accelerators to select and accelerate potential software product-based startups.
Approved to support the software product ecosystem, this scheme addresses key areas outlined in the National Policy on Software Products (NPSP) 2019.
This scheme encourages Indian MSMEs and startups to file international patents by providing support for innovation and recognizing global IP capabilities.
Organized by the Ministry of Skill Development and Entrepreneurship, this summit offers a platform for startups and aspiring entrepreneurs in the North-East Region to pitch their ideas, learn from best practices, and network with industry mentors.
A flagship initiative by NITI Aayog, AIM promotes innovation and entrepreneurship across India, including the establishment of Atal Tinkering Labs to foster creativity and computational thinking in young minds.
Launched by the Department of Science and Technology (DST) in 2016, this program nurtures ideas and technology-driven innovations into successful startups.
Launched by the Department of Defense Production, Ministry of Defense, iDEX fosters innovation and technology development in the defense and aerospace sectors by engaging startups, MSMEs, R&D institutes, and academia.
Union Minister of State for Commerce and Industry, Jitin Prasada, highlighted these achievements in a written reply in the Rajya Sabha Friday, emphasizing the government’s ongoing commitment to building a strong and inclusive startup ecosystem across India. (ANI)
