Start-up India Scheme

Start-up India initiative launched on 16th January 2016, consists of 19 Action Points that act as a guiding document for the initiative. Salient features of these action points are at Annexure I.

Since its inception, 19,351 Startups across the country have been recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as on 24.06.2019. The State-wise number of recognized Startups is at Annexure II.

Government of India has established Fund of Funds for Startups (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. SIDBI has committed Rs 3123.20 crore to 49 SEBI registered Alternative Investment Funds (AIFs). These funds have raised a corpus fund of INR 27,478 crore. INR 483.46 crore have been drawn from Fund of Funds for Startups. Further, the AIFs have invested a total of Rs. 1,625.73 crore into 247 startups. State/UT- wise details of funds invested by the AIFs are at Annexure III.

A total of 26 states have notified and operational startup policies. The list of States/UTs with start-up policies are provided at Annexure IV.

The details of top five States with highest number of registrations as done by DPIIT is at Annexure V.

                                                            ANNEXURE-I

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 crore with an objective to provide funding support for the development and growth of innovation-driven enterprises.
8. Credit Guarantee fund for Startupswith 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 the 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.
19. Annual Incubator Grand Challenge with an objective to support the creation of successful world-class incubators in India.

Number of recognized Startups under Startup India initiative (State/UT wise)

                                                                ANNEXURE-II

S.No.	State	No. of Recognized Startups
1	Maharashtra	3661
2	Karnataka	2847
3	Delhi	2552
4	Uttar Pradesh	1566
5	Telangana	1080
6	Haryana	1052
7	Tamil Nadu	1004
8	Gujarat	985
9	Kerala	849
10	West Bengal	573
11	Rajasthan	531
12	Madhya Pradesh	525
13	Odisha	343
14	Andhra Pradesh	323
15	Bihar	257
16	Chhattisgarh	249
17	Jharkhand	158
18	Uttarakhand	157
19	Punjab	142
20	Assam	137
21	Jammu and Kashmir	86
22	Goa	80
23	Chandigarh	78
24	Himachal Pradesh	39
25	Pondicherry	22
26	Manipur	14
27	Nagaland	8
28	Andaman and Nicobar Islands	6
29	Tripura	6
30	Dadra and Nagar Haveli	4
31	Meghalaya	4
32	Arunachal Pradesh	3
33	Mizoram	3
34	Orissa	3
35	Daman and Diu	2
36	Sikkim	2
Total	19351

                                                             ANNEXURE III

State-wise distribution of investment made by AIFs under Fund of Funds for Startups (FFS)

State	No of Startups Invested in	Investment made by AIFs(in crore)
Karnataka	75	499.85
Maharashtra	68	440.38
Delhi	46	252.94
Haryana	12	120.54
Tamil Nadu	11	113.34
West Bengal	4	48.75
Uttar Pradesh	5	47.61
Rajasthan	5	40.28
Telangana	6	28.22
Punjab	1	14.50
Kerala	8	10.87
Madhya Pradesh	4	5.10
Gujarat	1	3.14
Uttarakhand	1	0.22
Total	247	1625.73

                                                                 ANNEXURE IV

States/Union Territories in which Startup policies have been formulated

1. Andaman and Nicobar Islands

2. Andhra Pradesh

3. Assam

4. Bihar

5. Chhattisgarh

6. Goa

7. Gujarat

8. Haryana

9. Himachal Pradesh

10. Jammu and Kashmir

11. Jharkhand

12. Karnataka

13. Kerala

14. Madhya Pradesh

15. Maharashtra

16. Odisha

17. Rajasthan

18. Telangana

19. Uttar Pradesh

20. Uttarakhand

21. West Bengal

22. Tamil Nadu

23. Manipur

24. Punjab

25. Sikkim

26. Nagaland

                                                               ANNEXURE V

Details of Top Five States in the country with highest number of recognized Startups under Startup India Initiative

S.No.	State	No. of Recognized Startups
1	Maharashtra	3661
2	Karnataka	2847
3	Delhi	2552
4	Uttar Pradesh	1566
5	Telangana	1080

This information was given by the Minister of Commerce and Industry, PiyushGoyal, in a written reply in the Rajya Sabha today.

Source: Digpu