Home » Commerce and Industry » Sustained Government efforts result in increasing the number of recognized Startups from 452 in 2016 to 84,012 in 2022

Sustained Government efforts result in increasing the number of recognized Startups from 452 in 2016 to 84,012 in 2022

Sustained Government efforts in this direction have resulted in increasing the   number of recognized Startups from 452 in 2016 to 84,012 in 2022 (as on 30th November 2022), Minister of State for Commerce and Industry, Shri Som Parkash said in reply to a parliamentary question today.

The Government with an intent to build a strong ecosystem for nurturing innovation and startups in the country launched Startup India initiative on 16th January 2016.

In order to meet the objectives of the initiative, the Government unveiled an Action Plan for Startup India that laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country. 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”.

Details of various programs undertaken under Startup India initiative since inception are placed at Annexure-I.

(b):             As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019, entities are recognized as startups by the Department for Promotion of Industry and Internal Trade (DPIIT). 84,012 entities have been recognised as startups from across the country by the DPIIT as on 30th November 2022 . The State/ UT wise number of startups recognition by the DPIIT from the date of commencement of the Startup India initiative is placed at Annexure-II.

(c):               Under Startup India Initiative, to provide capital at various stages of business cycle of a startup, the Government has implemented Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS). Both the Schemes are                implemented on Pan-India basis.

The Fund of Funds for Startups Scheme was approved and established in June 2016 with a corpus of Rs 10,000 crore, with contribution spread over the 14th and 15th Finance Commission cycle based on progress of implementation, to provide much-needed boost to the Indian startup ecosystem and enable access to domestic capital.

Under FFS, the Scheme does not directly invest in startups, instead provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments. Small Industries Development Bank of India (SIDBI) has been given the mandate of operating this Fund through selection of suitable daughter funds and overseeing the disbursal of committed capital. AIFs supported under FFS are required to invest at least 2x of the amount committed under FFS in startups.

As on 30th November 2022, in the FFS, of the corpus of Rs. 10,000 crore, Rs. 7,527.95 crore has been approved (committed) to the AIFs. The State/ UT wise details are placed at Annexure-III.

The Startup India Seed Fund Scheme has been approved for the period of 4 years starting from 2021-22. The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. It has been implemented with effect from 1st April 2021.

Under SISFS, as per provisions of the Scheme, the Government has constituted an Experts Advisory Committee (EAC) which is responsible for the overall execution and monitoring of the SISFS. The EAC evaluates and selects incubators for allocation of funds under the Scheme. The selected incubators thereon shortlist the startups based on parameters outlined in Scheme guidelines.

As on 30th November 2022, in the SISFS, of the corpus of Rs. 945 crore, Rs. 455.25 crore has been approved to 126 incubators of which Rs. 186.15 crore has been disbursed. The State/ UT wise details are placed at Annexure-IV.

(d):                    Under Startup India Initiative, entities are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as startups as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019. As on 30th November 2022, Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat are the top five States/UTs in terms of number of recognised startups.

(e):                    Under Startup India Initiative, entities are recognized as startups by the DPIIT as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019. The district-wise number of entities recognised as startups by the DPIIT in the States of Karnataka and Maharashtra during the last two years is placed at Annexure-V.

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ANNEXURE-I

Programs Launched under Startup India initiative

The details of various programs undertaken by the Government to promote startups under Startup India initiative across the country are as under:

  1. Startup India Action Plan: 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.
  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. Credit Guarantee Scheme for Startups (CGSS): The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to 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. CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
  4. Regulatory Reforms: Over 50 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.
  5. 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 DPIIT recognised startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) Startup Runway has been developed which is a dedicated corner for startups to sell products and services directly to the Government.
  6. 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.
  7. Self-Certification under Labour and Environmental laws: Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
  8. Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized 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.
  9. International Market 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 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.
  10. Faster Exit for Startups: The Government has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
  11. 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.
  12. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019): A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act.
  13. Startup India Showcase: Startup India Showcase is an online discovery platform for the most promising startups of the country chosen through various programs for startups exhibited in a form of virtual profiles. The startups showcased on the platform have distinctly emerged as the best in their fields. These innovations span across various cutting-edge sectors such as Fintech, EntrepriseTech, Social Impact, HealthTech, EdTech, among others. These startups are solving critical problems and have shown exceptional innovation in their respective sectors. Ecosystem stakeholders have nurtured and supported these startups, thereby validating their presence on this platform.
  14. National Startup Advisory Council: 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.
  15. Startup India: The Way Ahead: Startup India: The Way Ahead at 5 years celebration of Startup India was unveiled on 16th January 2021 which includes actionable plans for promotion of ease of doing business for startups, greater role of technology in executing various reforms, building capacities of stakeholders and enabling a digital Aatmanirbhar Bharat.
  16. 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.
  17. National Startup Awards (NSA): 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. Handholding support is provided to all the finalists across various tracks viz. Investor Connect, Mentorship, Corporate Connect, Govt. Connect, International Market Access, Regulatory Support, Startup Champions on Doordarshan and Startup India Showcase, etc.
  18. States’ Startup Ranking Framework (SRF): States’ Startup Ranking Framework is a unique initiative to harness strength of competitive federalism and create a flourishing startup ecosystem in the country. The major objectives of the ranking exercise are facilitating states to identify, learn and replace good practices, highlighting the policy intervention by states for promoting startup ecosystem and fostering competitiveness among states.
  19. Startup Champions on Doordarshan: Startup Champions program on Doordarshan is a one-hour weekly program covering stories of award winning/ nationally recognised startups. It is telecasted in both Hindi and English across Doordarshan network channels.
  20. Startup India Innovation Week: The Government organises Startup India Innovation week around the National Startup Day i.e. 16th January, with the primary goal was to bring together the country’s key startups, entrepreneurs, investors, incubators, funding entities, banks, policymakers, and other national/international stakeholders to celebrate entrepreneurship and promote innovation.

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ANNEXURE-II

The State/ UT wise number of startups recognition by the DPIIT from the date of commencement of the Startup India initiative as on 30th November is as under:

States 2016 2017 2018 2019 2020 2021 2022 Total
Andaman and Nicobar Islands 1 2 8 5 13 9 38
Andhra Pradesh 4 97 158 174 231 296 340 1,300
Arunachal Pradesh 2 2 4 8 16
Assam 9 34 67 67 119 187 245 728
Bihar 1 46 145 154 258 390 469 1,463
Chandigarh 8 21 25 39 53 69 73 288
Chhattisgarh 11 56 118 158 153 165 210 871
Dadra and Nagar Haveli and Daman and Diu   4 1 3 5 12 12 37
Delhi 62 713 1,147 1,371 1,765 2,178 2,352 9,588
Goa 2 19 43 41 67 80 99 351
Gujarat 24 278 434 591 878 1,709 1,963 5,877
Haryana 25 253 474 694 806 1,060 1,199 4,511
Himachal Pradesh 9 16 28 41 56 103 253
Jammu and Kashmir 2 13 43 37 64 132 159 450
Jharkhand 2 35 85 88 163 191 208 772
Karnataka 58 828 1,172 1,659 1,729 2,141 2,317 9,904
Kerala 24 158 320 647 699 919 997 3,764
Ladakh 1 4 5
Lakshadweep 1 1
Madhya Pradesh 7 101 287 327 423 557 813 2,515
Maharashtra 86 1,047 1,607 2,118 2,671 3,703 4,339 15,571
Manipur 3 7 6 12 37 30 95
Meghalaya 2 5 9 10 26
Mizoram 2 1 1 2 6 12
Nagaland 1 4 2 2 5 7 7 28
Odisha 4 105 163 184 277 389 400 1,522
Puducherry 3 15 10 13 17 29 87
Punjab 7 28 63 92 146 240 263 839
Rajasthan 13 137 241 349 493 619 879 2,731
Sikkim 1 2 1 3 2 9
Tamil Nadu 43 252 448 602 755 1,103 1,501 4,704
Telangana 20 303 496 592 798 980 1,237 4,426
Tripura 2 7 23 11 26 69
Uttar Pradesh 27 385 764 873 1,370 1,966 2,334 7,719
Uttarakhand 4 43 69 97 114 162 214 703
West Bengal 8 170 269 300 394 682 916 2,739
Grand Total 452 5,147 8,689 11,328 14,534 20,089 23,773 84,012

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ANNEXURE-III

The details of the amount allocated and utilized under the Fund of Funds for Startups, State/UT-wise as on 30th November 2022 are as under:

Name of State/ UT Total Amount Allocated in Rs. Crore (Committed to the Alternative Investment Funds) Total Amount Utilised in Rs. Crore (Drawdowns made by the Alternative Investment Funds and Disbursed by SIDBI)
Assam                                           25.00                                                16.48
Delhi                                         751.00                                              539.31
Gujarat                                         100.00                                                51.75
Haryana                                         111.00                                                34.42
Karnataka                                     1,719.75                                              754.15
Maharashtra                                     4,241.20                                          1,450.58
Tamil Nadu                                         450.00                                              279.05
Telangana                                         130.00                                                78.56
Grand Total                                     7,527.95                                          3,204.29

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ANNEXURE-IV

The details of the amount allocated and utilized under the Startup India Seed Fund Scheme, State/UT-wise as on 30th November 2022 are as under:

Name of State/ UT Total Amount Allocated (approved to the selected incubators)*

(In Rs. Crore)

Total Amount Utilised (disbursed to the selected incubators)*

(In Rs. Crore)

Andhra Pradesh 4.00 1.60
Assam 2.00 0.80
Bihar 10.00 4.00
Chhattisgarh 1.00 0.40
Delhi 12.00 4.80
Goa 11.80 4.72
Gujarat 62.00 22.40
Haryana 7.00 2.80
Himachal Pradesh 8.00 2.00
Karnataka 49.50 19.55
Kerala 18.00 8.70
Madhya Pradesh 12.00 4.80
Maharashtra 62.50 23.60
Odisha 19.00 6.80
Puducherry 8.00 3.20
Punjab 13.00 4.00
Rajasthan 33.50 12.60
Sikkim 3.00 1.20
Tamil Nadu 34.00 18.70
Telangana 39.95 17.58
Uttar Pradesh 30.00 15.90
Uttarakhand 10.00 4.00
West Bengal 5.00 2.00
Grand Total 455.25 186.15

* Note:          The above amounts are exclusive of management fee of 5% of the approved amount.

*******

ANNEXURE-V

The district-wise number of entities recognised as startups by the DPIIT in Karnataka during the last two years are as follows:

Districts 2020 2021
Bagalkot 4 3
Ballari 3 8
Belagavi 19 26
Bengaluru 1  
Bengaluru Rural 45 136
Bengaluru Urban 1,458 1,683
Bidar 3 4
Chamarajanagar 3  
Chikballapur 2 4
Chikkamagaluru 4 3
Chitradurga 2 5
Dakshina Kannada 34 41
Davanagere 5 7
Dharwad 29 39
Gadag   3
Hassan 3 11
Haveri 1 4
Kalaburagi 5 5
Kodagu 2 3
Kolar 6 10
Koppal   2
Mandya 10 3
Mysuru 48 62
Raichur 2 8
Ramanagaram 5 3
Shivamogga 10 17
Tumakuru 8 10
Udupi 8 21
Uttara Kannada 5 9
Vijayapura 4 10
Yadgir   1
Grand Total 1,729 2,141

The district-wise number of entities recognised as startups by the DPIIT in Maharashtra during the last two years are as follows:

Districts 2020 2021
Ahmednagar 21 35
Akola 4 18
Amravati 8 20
Aurangabad 39 84
Beed 2 10
Bhandara 6 5
Buldhana 10 17
Chandrapur 4 14
Dhule 6 8
Gadchiroli 4 1
Gondia 9 13
Hingoli   4
Jalgaon 17 29
Jalna 2 9
Kolhapur 27 47
Latur 8 10
Mumbai 744 994
Mumbai Suburban 243 287
Nagpur 124 162
Nanded 10 18
Nandurbar 2 6
Nashik 82 122
Navi Mumbai 1  
Osmanabad 1 9
Palghar 39 32
Parbhani 5 7
Pune 769 1,015
Raigad 69 97
Ratnagiri 7 8
Sangli 15 32
Satara 13 25
Sindhudurg 3 5
Solapur 18 26
Thane 350 517
Wardha 3 8
Washim 3 1
Yavatmal 3 8
Grand Total 2,671 3,703

This information was given by Minister of State for Commerce and Industry, Shri Som Parkash in reply to a parliamentary question today.

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