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India witnesses a massive 15,400% rise in startups in last 6 years
As on 30th June 2022, a total of 72,993 have been recognized by Department for Promotion of Industry and Internal Trade
India registered a whopping rise of 15,400% in the number of startups that rose from from 471 in 2016 to 72,993 as on 30th June 2022.
In a written reply to a question in the Rajya Sabha, Union Minster of State for Commerce and Industry Som Prakash stated that the Startup India initiative was launched in 2016 with the objective of building a strong ecosystem for nurturing innovation and entrepreneurship in the country, adding that all initiatives are implemented across States, cities, towns and rural areas.
He further mentioned that Under Startup India initiative, as on 30th June 2022, a total of 72,993 have been recognized by Department for Promotion of Industry and Internal Trade (DPIIT).
The Government of India, as part of Startup India initiative, is implementing Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme (SISFS) to provide financial assistance to startups through Alternative Investment Funds (AIFs) and incubators respectively, said the minister's statement.
It further said that under SISFS, as on 30th June 2022, a total of 703 startups have been provided with funds while 428 startups have been approved funding.
Listing various programs undertaken by the Government to promote startups across the country under Startup India initiative, the minister's statement said that an Action Plan for Startup India was unveiled on 16th January 2016. The Action Plan comprises of 19 action items spanning across areas such as ‘simplification and handholding, ’funding support and incentives and ‘Industry academia partnership and incubation’.
The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country, said the statement.
According to the statement, 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.
MoS Prakash further stated that 52 regulatory reforms have been undertaken by the Government since 2016 to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem.
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, said the minister in his written reply.
Further, Government e-Marketplace (GeM) Startup Runway; a dedicated corner for startups to sell products & services directly to the Government, he added.
As per the statement, startups are eligible for fasttracked 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, stated the minister.
He also mentioned that 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 15 countries (Brazil, Sweden, Russia, Portugal, UK, Finland, Netherlands, Singapore, Israel, Japan, South Korea, Canada, Croatia, Qatar and UAE) that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration, added the statement.
"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, said the government statement.
It stated that the Government in January 2020 notified constitution of the National Startup Advisory Council to advise the Government on measures needed to build a strong ecosystem for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale employment opportunities. Besides the ex-officio members, the council has a number of non-official members, representing various stakeholders from the startup ecosystem, it said.
MoS Som Prakash was replying to the questions of Rajya Sabha MP KC Venugopal.
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Business NewsEconomyIndia witnesses a massive 15,400% rise in startups in last 6 years
First Published:24 Jul 2022, 08:22 AM IST
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