In a significant milestone for India’s startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 1,40,803 entities as startups under the Startup India initiative, launched on 16th January 2016.
The initiative, aimed at nurturing innovation and encouraging investments in startups, has seen substantial growth across the nation.
As of 30th June 2024, Maharashtra leads with 25,044 recognized startups, followed by Karnataka with 15,019 and Delhi with 14,734.
Other notable states include Uttar Pradesh (13,299), Gujarat (11,436), Tamil Nadu (9,238), Haryana (7,385), and Telangana (7,336).
Among the smaller regions, Lakshadweep has 3, Sikkim has 11, and Ladakh has 16 recognized startups.
The Government of India has rolled out various initiatives to bolster the startup ecosystem. Detailed below are the key programs and policies:
Startup India Action Plan
Launched on 16th January 2016, the Action Plan encompasses 19 action items focusing on simplification and handholding, funding support, and industry-academia partnerships.
This plan laid the foundation for government support, schemes, and incentives for startups.
Startup India: The Way Ahead
Unveiled on the 5th anniversary of Startup India in 2021, this plan promotes ease of doing business, leverages technology for reforms, builds stakeholder capacities, and advances the digital Aatmanirbhar Bharat initiative.
Startup India Seed Fund Scheme (SISFS)
Recognizing the critical need for early-stage funding, the government introduced the SISFS, which has sanctioned Rs. 945 crore for the period 2021-2025. This scheme provides financial assistance for proof of concept, prototype development, product trials, market entry, and commercialization.
Fund of Funds for Startups (FFS) Scheme
With a corpus of Rs. 10,000 crore, the FFS scheme aims to meet the funding needs of startups through the 14th and 15th Finance Commission cycles.
Managed by the Small Industries Development Bank of India (SIDBI) and monitored by DPIIT, the scheme supports startups at various stages, facilitating the raising of domestic capital and reducing dependence on foreign investment.
Credit Guarantee Scheme for Startups (CGSS)
The CGSS provides credit guarantees to loans extended to DPIIT-recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and Venture Debt Funds (VDFs).
This scheme aims to enhance access to credit for startups, thereby supporting their financial growth.
Regulatory Reforms
Over 55 regulatory reforms have been introduced to enhance ease of doing business, ease of raising capital, and reduce compliance burdens for startups.
Ease of Procurement
To simplify procurement, Central Ministries/Departments are instructed to relax prior turnover and experience requirements for DPIIT-recognized startups, provided they meet quality and technical standards.
Additionally, the Government e-Marketplace (GeM) supports and promotes startup procurement.
Self-Certification under Labour and Environmental Laws
Startups can self-certify compliance under 9 labour and 3 environmental laws for up to 5 years from incorporation.
Income Tax Exemption for 3 Years
Startups incorporated on or after April 1, 2016, can apply for income tax exemption.
Recognized startups with an Inter-Ministerial Board Certificate are exempt from income tax for 3 consecutive years out of the 10 years following incorporation.
Faster Exit for Startups
Recognized as ‘fast track firms’, startups can wind up operations within 90 days, compared to 180 days for other companies.
Intellectual Property Protection
Startups benefit from fast-tracked patent application examination and disposal through the Start-ups Intellectual Property Protection (SIPP) scheme.
The government covers the entire facilitator fee for filing patents, trademarks, and designs, offering startups an 80% rebate on patent filings and a 50% rebate on trademark filings.
Startup India Hub
Launched on June 19, 2017, the Startup India Online Hub is a unique platform for India’s entrepreneurial ecosystem.
It enables startups, investors, funds, mentors, academic institutions, incubators, accelerators, corporates, and government bodies to discover, connect, and engage with each other.
International Market Access to Indian Startups
A key objective of the Startup India initiative is to connect the Indian startup ecosystem with global ecosystems.
This is achieved through international government to government partnerships, participation in global forums, and hosting global events.
Startup India has established bridges with around 20 countries, offering a soft-landing platform for startups from these nations and fostering cross-collaboration.
Startup India Showcase
The Startup India Showcase is an online platform highlighting India’s most promising startups, selected through various programs and presented via virtual profiles.
Featuring leading innovations in sectors like Fintech, Enterprise Tech, Social Impact, Health Tech, and EdTech, the showcased startups have demonstrated exceptional innovation and problem-solving abilities.
Their inclusion on the platform reflects strong support and validation from ecosystem stakeholders.
National Startup Advisory Council
In January 2020, the Government established the National Startup Advisory Council to provide guidance on fostering a robust ecosystem for innovation and startups.
The council’s aim is to drive sustainable economic growth and create significant employment opportunities.
It includes ex-officio members as well as non-official members representing various startup ecosystem stakeholders.
National Startup Awards (NSA)
The National Startup Awards aim to recognize and reward exceptional startups and ecosystem enablers for their innovative products, scalable enterprises, and significant social impact.
Finalists receive extensive support, including Investor Connect, Mentorship, Corporate Connect, Government Connect, International Market Access, Regulatory Support, and visibility through platforms like Doordarshan and the Startup India Showcase.
States’ Startup Ranking Framework (SRF)
The States’ Startup Ranking Framework leverages competitive federalism to enhance the startup ecosystem across India.
Its main goals are to help states identify and adopt best practices, showcase state-led policy interventions, and encourage competitiveness among states.
Startup Champions on Doordarshan
The Startup Champions program on Doordarshan is a one-hour weekly show featuring stories of award-winning and nationally recognized startups. It airs in both Hindi and English across Doordarshan network channels.
Startup India Innovation Week
The Government organizes Startup India Innovation Week around National Startup Day (January 16) to unite key startups, entrepreneurs, investors, incubators, funding entities, banks, policymakers, and other stakeholders. The event celebrates entrepreneurship and promotes innovation.
ASCEND
Under ASCEND (Accelerating Startup Caliber & Entrepreneurial Drive), sensitization workshops on startups and entrepreneurship were held across all eight North Eastern States.
The goal was to enhance knowledge on key entrepreneurial aspects and strengthen the startup ecosystem in these regions.
Startup India Investor Connect Portal
The Startup India Investor Connect Portal, co-developed with SIDBI, is a platform that connects startups with investors to facilitate capital mobilization.
It enables early-stage startups from across the country to showcase themselves to leading investors and venture capital funds.
National Mentorship Portal (MAARG)
The Mentorship, Advisory, Assistance, Resilience, and Growth (MAARG) program, launched under the Startup India Initiative, is designed to provide mentorship and support to startups across the country.
MeitY Start-up Hub (MSH)
The ‘MeitY Start-up Hub’ (MSH), established under the Ministry of Electronics & Information Technology (MeitY), serves as a central entity to connect deep tech startup infrastructure across India.
MSH aids incubators and startups in scaling up, enhancing market outreach, and has forged partnerships with various stakeholders to foster an innovation-driven, technology-oriented economy.
TIDE 2.0 Scheme
Launched in 2019, the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme supports tech entrepreneurship by providing financial and technical assistance to incubators that support ICT startups using emerging technologies like IoT, AI, blockchain, and robotics.
The scheme is implemented through a three-tiered structure, aiming to enhance incubation activities at higher education institutions and leading R&D organizations.
Domain Specific Centres of Excellence
MeitY has established Centres of Excellence (CoEs) in key national interest areas to foster self-sufficiency and develop capabilities in emerging technologies.
These domain-specific CoEs facilitate innovation, democratize technology, and help transform India into a hub for emerging technologies by supporting prototype development.
Biotechnology Industry Research Assistance Council (BIRAC)
An industry-academia interface agency under the Department of Biotechnology, Ministry of Science & Technology, supports biotech startups across various sectors, including clean energy and emerging technologies.
It offers project-based funding through key schemes such as the Biotech Ignition Grant (BIG), Small Business Innovation Research Initiative (SBIRI), and Biotechnology Industry Partnership Programme (BIPP).
Additionally, the Bioincubators Nurturing Entrepreneurship for Scaling Technologies (BioNEST) Scheme provides incubation support to these startups and companies.
SAMRIDH Scheme
MeitY has launched the ‘Start-up Accelerator Programme of MeitY for Product Innovation, Development and Growth (SAMRIDH)’ to support and enhance existing and upcoming accelerators. The program aims to select and scale potential software product-based startups.
Next Generation Incubation Scheme (NGIS)
The National Generic Software Infrastructure (NGIS) has been approved to support the software product ecosystem and address key aspects of the National Policy on Software Product (NPSP) 2019.
Support for International Patent Protection in E&IT (SIP-EIT)
MeitY initiated the “Support for International Patent Protection in E&IT (SIP-EIT)” scheme to encourage Indian Micro, Small, and Medium Enterprises (MSMEs) and startups to file international patents, fostering innovation and acknowledging the global value of intellectual property.
North-East Region Entrepreneurship & Startup Summit (NERES)
The Ministry of Skill Development and Entrepreneurship organized NERES, an entrepreneurship and startup summit for the North-East Region (NER).
The event aimed to inspire entrepreneurial minds, provide a platform for startups to pitch their ideas, and address startup challenges.
It allowed participants to showcase their business plans, learn best practices, and network with peers, while also offering opportunities for mentorship and ecosystem support to foster business growth
Atal Innovation Mission
The Atal Innovation Mission (AIM), launched by NITI Aayog, is a flagship initiative of the Government aimed at promoting innovation and entrepreneurship nationwide.
AIM has established Atal Tinkering Labs (ATLs) to cultivate curiosity, creativity, and imagination in young minds, while developing skills like design thinking, computational thinking, adaptive learning, and physical computing.
National Initiative for Developing and Harnessing Innovations (NIDHI)
Launched in 2016, the Department of Science and Technology’s (DST) National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella program designed to nurture and transform knowledge-based and technology-driven ideas into successful startups.
Innovations for Defence Excellence (iDEX)
Launched by the Department of Defense Production, Ministry of Defense, iDEX aims to promote self-reliance and advance innovation in Defense and Aerospace.
It engages industries, including MSMEs and startups, along with R&D institutes and academia, by providing grants for research and development.
In summary, the government’s multifaceted approach to supporting startups has led to the recognition of over 1.4 lakh startups, indicating significant progress in nurturing innovation and entrepreneurship in India.
This information has been provided by the Union Minister of State for Commerce and Industry, Shri Jitin Prasada, in a written reply in the Rajya Sabha today.
