30-Mar-2022: Innovations In Startups

Startup India Initiative

• Launched on 16th January 2016
• Aims to build a stronger ecosystem for nurturing India's startup culture
• Drives economic growth, supports entrepreneurship, and enables large-scale employment opportunities

Increase in Recognized Startups

• Number of recognized startups increased from 726 in FY 2016-17 to 65,861 in FY 2021-22 (as of 14th March 2022)
• At least one recognized startup from every State and UT
• Nearly 50% of recognized startups are from Tier-II and III cities
• Spread across over 640 districts
• Created more than 7 lakh jobs

States' Startup Rankings on Support to Startup Ecosystems

• Identifies good practices, learns from each other, and helps in formulation and implementation of policies
• Builds favorable policy landscape for startups
• Mentorship is a key pillar of evaluation

National Startup Awards

• Identify depth, quality, and spread of innovation and entrepreneurship in the country
• Winners from various cities such as Bengaluru, Delhi, Hyderabad, Chennai, Mumbai, Mysuru, Bhopal, Ernakulam, Gurugram, Kochi, Lucknow, Margao, Sonipat, and Thiruvananthapuram
• Winners and finalists provided handholding support across various pillars including mentorship
• Enables Indian startups to connect with global startup ecosystems through various engagement models

Startups' Contribution to Government's Flagship Programs

• Active contribution in programs such as AMRUT, Smart Cities Mission, Swachh Bharat Mission, HRIDAY scheme
• Improves urban infrastructure and service provision

DPIIT Recognition of Startups

• Recognized startups in 56 diversified sectors
• Over 20% of startups in sectors such as Automotive, Green Technology, Healthcare and Lifesciences, Renewable Energy, etc.
• Over 4,500 recognized startups in sectors like Construction, House-hold Services, Logistics, Real Estate, and Transportation and Storage contributing towards urban concerns.

8-Dec-2021: Creation of Jobs by Startups

Startup India Initiative

• Launched on 16th January 2016
• Aims to build a strong ecosystem for nurturing innovation and startups in India
• Startups are recognized as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019
• No information on number of jobs created by startups from 2004 to 2014 is maintained by the Department

Fund of Funds for Startups Scheme

• Implemented as part of Startup India initiative
• Aims to provide financial assistance and boost private investment in the startups through Alternative Investment Funds (AIFs) and incubators
• A corpus of Rs. 10,000 crore has been sanctioned, spread over 14th and 15th Finance Commission cycles
• Small Industries Development Bank of India (SIDBI) is the nodal bank under this scheme
• FFS Scheme does not directly provide financial assistance to startups, instead supports SEBI- registered AIFs, who in turn invest money in growing Indian startups through equity and equity-linked instruments

Startup India Seed Fund Scheme

• Implemented as part of Startup India initiative
• Aims to provide financial assistance to startups through approved Incubators
• Rs. 945 crore has been sanctioned for the period of 4 years starting from 2021-22.

In addition to the above, the Startups can also avail other benefits under the Startup India Initiative as given below:

1. Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. The capital required at this stage often presents a make or break situation for startups with good business ideas. The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22. It will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years.
2. Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating raising of domestic capital, reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
3. Ease of Procurement: To enable ease of procurement, Central Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all Startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) Startup Runway; a dedicated corner for startups to sell products & services directly to the Government.
4. Self-Certification under Labour and Environmental laws: Startups are allowed to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
5. Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognised startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
6. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act: A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(vii b) of the Income Tax Act.
7. Faster Exit for Startups: Ministry of Corporate A­ffairs has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
8. Support for Intellectual Property Protection: Startups are eligible for fast-tracked patent application examination and disposal. The Government launched Start-ups Intellectual Property Protection (SIPP) which facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees. Facilitators under this Scheme are responsible for providing general advisory on diff­erent IPRs, and information on protecting and promoting IPRs in other countries. The Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
9. Startup India Hub: The Government launched a Startup India Online Hub on 19th June 2017 which is one of its kind online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other. The Online Hub hosts Startups, Investors, Funds, Mentors, Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.
10. International Access to Indian Startups: One of the key objectives under the Startup India initiative is to help connect Indian startup ecosystem to global startup ecosystems through various engagement models. This has been done though international Government to Government partnerships, participation in international forums and hosting of global events. Startup India has launched bridges with over 11 countries (Brazil, Sweden, Russia, Portugal, UK, Finland, Netherlands, Singapore, Israel, Japan and South Korea) that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration.
11. National Startup Awards: National Startup Awards is an initiative to recognize and reward outstanding startups and ecosystem enablers that are building innovative products or solutions and scalable enterprises, with high potential of employment generation or wealth creation, demonstrating measurable social impact.

Further, Startups in North-Eastern States, including Assam, can also avail benefits of the North East Industrial Development Scheme (NEIDS), notified on 12.04.2018 for a period of 5 years, up to 2022.

15-Jan-2021: Shri Piyush Goyal inaugurates the ‘Prarambh: Startup India International Summit’

Startup India International Summit

• Organized by Department for Promotion of Industry and Internal Trade
• Follow-up of announcement made by Prime Minister Modi at 4th BIMSTEC Summit
• BIMSTEC countries participating in inaugural event
• Demonstrates neighbourhood first policy
• Aims to boost partnership among member countries

Benefits of Summit

• Showcases various aspects of the startup world
• Partnership among BIMSTEC countries will take startups to forefront of new India, new world, new neighbourhood
• Startups have ideas, enthusiasm, and innovations
• Timing of Summit during pandemic is perfect
• Will mark a beginning of a new journey towards new horizon
• Encourages startup to startup collaboration
• Exchange of ideas and young minds working together collectively to solve problems
• Assures prosperity and growth in the region
• Aims to create an ecosystem full of innovation, invention, and enterprise

India's Startup Ecosystem

• Made big progress in last 5 years since launch of Startup India
• Over 41,000 startups registered with the government
• Encourages and supports Indian startups at an early stage
• Asks Indian investors and capital to look towards BIMSTEC startups to mentor and support them
• Skill development plays an important role in boosting entrepreneurship spirit and giving confidence to entrepreneurs
• A positive attitude and tremendous ability powers the future of startups
• Startup to startup collaboration has a huge potential for new ideas to prosper and young minds to work collectively
• Collective commitment demonstrated by BIMSTEC nations will surely encourage startups in all other countries

Minister's Hope

• Summit will usher in a new beginning
• India and BIMSTEC countries will experience unprecedented growth in the post Covid pandemic world and start a global area of development
• Prime Minister Modi's encouragement to startups and efforts to create an ecosystem full of innovation, invention, and enterprise, will work like a battery where a positive attitude and tremendous ability powers the future of startups
• Encourages Indian investors to work towards greater engagement
• Startup to startup collaboration has a huge potential for new ideas to prosper and young minds to work collectively

Government Initiatives and Reforms

• Conducive environment for growth and development of startups
• Atmanirbhar Bharat
• Excellent opportunity for startups to come together, handhold, cooperate and grow

Global Participation and Support

• Brought together leaders, investors, scholars, policy makers, startup innovators, and entrepreneurs
• Startups provide a ray of hope with a capacity to innovate and respond quickly to any problem
• Policy support and coming together to help startups
• Suggestions to hold such conclaves annually and to set up a startup hub in the BIMSTEC Secretariat

14-Jan-2021: PM to interact with Startups and address ‘Prarambh: Startup India International Summit’ on 16 January

Prarambh: Startup India International Summit

• Date: 15-16 January, 2021
• Venue: Virtual
• Organized by: Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

Participants:

• Prime Minister Shri Narendra Modi
• Startups
• Global speakers (over 200)
• Representatives from over 25 countries

Objective:

• Follow up on announcement made by Prime Minister at fourth BIMSTEC Summit in August 2018
• Largest startup confluence organized by Government of India since launch of Startup India initiative in 2016
• Enhance multilateral cooperation and engagement with countries around the globe
• Develop and strengthen startup ecosystems

Agenda:

• 24 sessions
• Focus on enhancing multilateral cooperation and engagement with countries from around the globe
• Enhance startup ecosystems

The event will mark the fifth anniversary of Startup India initiative launched by Prime Minister on 16 January, 2016.

11-Mar-2020: Features of Start Up India

Startup India Initiative

• Launched on August 15, 2015
• Objectives:
  • Build a strong eco-system for nurturing innovation and startups in India
  • Drive sustainable economic growth
  • Generate large scale employment opportunities

Action Plan for Startup India

• Unveiled on January 16, 2016
• Comprises of 19 action items
  • Simplification and handholding
  • Funding support and incentives
  • Industry-academia partnership and incubation

Recognition of Startups: Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 28,979 startups as of March 1, 2020

Fund of Funds for Startups (FFS)

• Established by Government of India with a corpus of Rs. 10,000 crores
• DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS
• Provides capital to SEBI-registered Alternate Investment Funds (AIFs), known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments
• SIDBI has committed Rs 3123.20 crore to 47 SEBI registered Alternative Investment Funds (AIFs) as of February 18, 2020
• AIFs have raised a corpus fund of Rs. 25,728 crore
• AIFs have invested a total of Rs. 3,378.47 crore into 320 startups, out of which Rs. 912.91 crore have been drawn from FFS

No direct fund allocation from DPIIT to States/UTs under Startup India initiative.

Startup India is an ongoing initiative. Necessary measures are being taken based on continuous consultations with all stakeholders.

Salient features of Startup India action plan

1. Compliance Regime based on Self-Certification with an objective to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.
2. Startup India Hub with an objective to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.
3. Rolling out of Mobile App and Portal with an objective to serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders.
4. Legal Support and Fast-tracking Patent Examination at Lower Costs with an objective to promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual Property services and resources, including fast-track examination of patent applications and rebate in fees.
5. Relaxed Norms of Public Procurement for Startups with an objective to provide an equal platform to Startups across sectors vis-à-vis the experienced entrepreneurs/ companies in public procurement.
6. Faster Exit for Startups with an objective to make it easier for Startups to wind up operations.
7. Providing Funding Support through Fund of Funds with a Corpus of Rs. 10,000 crores with an objective to provide funding support for development and growth of innovation driven enterprises.
8. Credit Guarantee fund for Startups with objective to catalyze entrepreneurship by providing credit to innovators across all sections of society.
9. Tax Exemptions on Capital Gains with an objective to promote investments into Startups by mobilizing the capital gains arising from sale of capital assets.
10. Tax Exemptions to startups for 3 Years with an objective to promote the growth of Startups and address working capital requirements.
11. Tax Exemption on Investments above Fair Market Value with an objective to encourage seed-capital investment in Startups.
12. Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform with an objective to galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.
13. Launch of Atal Innovation Mission (AIM) with an objective to serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas.
14. Harnessing Private Sector Expertise for Incubator Setup with an objective to ensure professional management of Government sponsored / funded incubators, Government will create a policy and framework for setting-up of incubators across the country in public private partnership.
15. Building Innovation Centers at National Institutes with an objective to propel successful innovation through augmentation of incubation and R&D efforts.
16. Setting up of 7 New Research Parks Modelled on the Research Park Setup at IIT Madras with an objective to propel successful innovation through incubation and joint R&D efforts between academia and Industry.
17. Promoting Startups in the Biotechnology Sector with an objective to foster and facilitate bio-entrepreneurship.
18. Launching of Innovation Focused Programs for Students with an objective to foster a culture of innovation in the field of Science and Technology amongst students.

Annual Incubator Grand Challenge with an objective to support creation of successful world class incubators in India.

6-Aug-2018: Startup India’s Academia Alliance Programme

Startup Academia Alliance

• Launched by Startup India to promote entrepreneurship
• A mentorship opportunity for academic scholars and startups
• Aims to reduce the gap between research and industrial applications
• To increase efficacy of technologies and widen impact
• Creates a bridge between academia and industry
• Third pillar of Startup India Action Plan - Industry Academia Partnerships and Incubation

Phase one partnerships with:

• Regional Centre for Biotechnology
• The Energy and Resources Institute (TERI)
• Council on Energy, Environment and Water
• TERI School of Advanced Studies

Renowned scholars provide mentorship and guidance to startups

Applications hosted on Startup India Hub

• 133 applications received
• 43 shortlisted on basis of operational areas and technological relevance
• Emphasis on finding startups with innovative solutions to pressing problems

Mentorship sessions have commenced

Startups to benefit from expertise and insights of experienced research scholars.

6-Feb-2018: Launch of Startup India Ranking Framework

Union Minister of Commerce and Industry launched three new tools for ranking startups in India. These tools are designed to drive India's economic growth and support the Startup India initiative.

Three New Tools

1. State and Union Territory Startup Ranking Framework
   • Key objective is to encourage States and UTs to strengthen the local startup ecosystem.
   • Measures the impact of each step initiated for building a strong Startup ecosystem.
   • Enables continuous learning through the dissemination of good practices.
   • Feedback collected from Startup ecosystem stakeholders.
   • Parameters focus on all the actions and initiatives undertaken by states on or before March 2018.
   • Areas given greater thrust like seed funding support, women entrepreneurship are given more score.
2. Compendium of Good Practices for Promoting Startups in India
   • Enriches the Startup ecosystem through ethical behaviors.
   • Currently followed by 18 States and UTs.
   • Covers 95 good practices across 7 areas of intervention.
   • Distilled into 38 action points.
   • Includes Incubation Support, Seed Funding, Angel & Venture Funding, Startup Policy & Implementation, Simplified Regulations, Easing Public Procurement, Awareness & Outreach.
3. Startup India Kit
   • A one-stop guide on all Startup India offerings.
   • Offers vital information, advice, and assistance through website links, statistics, tools, templates, events, competitions, and a glossary on startup terms.
   • All the benefits available to startups from the Startup India initiative can be found in the kit.

Impact of Startups in India

• India is home to about 20,000 startups.
• About 1,400 startups begin operations every year.
• Startups drive economic growth and lead to technological innovations and employment generation in every state.
• The government has taken the lead in creating policies and a framework to encourage and help startups.
• 18 States and UTs have a startup-focused environment with ease of doing business for startups.

The government is aligning its strategies to tap into the infinite potential of young entrepreneurial minds. The government wants to help them in the journey from idea to business and business to success. These policies will help states to take proactive steps to enable startup ecosystems at the local level.