“India has over 61,400 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), with at least 14,000 recognized during fiscal 2022, according to the Economic Survey 2021-22.”
“Startups in India have grown remarkably over the last six years. The number of newly recognized startups has increased to over 14,000 in 2021-22 from only 733 in 2016-17,” the survey entailed.
So what has really caused this exponential positive growth in the Indian startup landscape over the years? This blog throws light on one such movement of the Indian government that has given this boost to enterprise creators.
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Startup India
Startup India is India’s largest online entrepreneurship platform that allows startups to “network, access free tools & resources and participate in programs & challenges.”
Falling under the ‘Ministry of Commerce along with the ‘Department for Promotion of Industry and Internal Trade,’ it is a flagship initiative of the Government of India, strategized towards building a strong ecosystem that facilitates the growth of startup businesses, to in turn elevate the sustainable economic growth of our country and generate large scale employment opportunities.
Several initiatives have been taken up since the launch of the program on 16th of January, 2016 by the Hon’ble Prime Minister, to contribute to his revolutionary vision of transforming India into a country of ‘job creators instead of job seekers.’ These programs have encouraged the youth to innovate; kindled and fuelled the startup culture, and as of now it is easier for them to get recognized through the Startup India initiative.
The Startup Portal provides a vast and diversified network of professionals to connect with. These individuals are stakeholders in the Indian Startup Ecosystem. The portal displays the kinds of individuals you can get in touch with for investments, funding, statutory accountability, guidance, taxation, other startups, and departments of the government of India.
There are 1096 incubators, 846 mentors, 86 investors, and 71 government bodies for additional partnered services registered on the portal.
Source: https://www.startupindia.gov.in/content/sih/en/about_startup_portal.html
There are 632,105 registered users on the Startup India portal already. It provides an arsenal of the following online tools & resources for FREE.
- STRUCTURED DEVELOPMENT PROGRAM FOR STARTUPS: A quick online guide to starting a business in India, with an overview of key terms, processes, stakeholders, legal considerations, and more.
- PARTNERED SERVICES: Essential services including legal help, banking, cloud services and more, for free from the registered partners and organizations. The government of India provides 18 ‘International bridges’ with countries like UK, Italy, Canada, Brazil etc.
https://www.startupindia.gov.in/content/sih/en/international.html
- VERIFIED TOOLS AND TEMPLATES: Collection of verified templates (that can be downloaded) for every operation, from Legal to HR to Finance to Customer Support.
- ONLINE COURSES: A curated list of a whopping 79 entrepreneur-friendly courses on topics ranging from data analytics to design thinking, portfolio management, finances and more.
https://www.startupindia.gov.in/content/sih/en/reources/online-courses.html
- EXCLUSIVE INNOVATION CHALLENGES & PROGRAMS: Opportunities to participate in corporate & government challenges to get noticed, win cash grants, incubation, mentorship support, and more. The system is built to connect innovators to their relevant stakeholders based on their industry and preferred stage.
Currently, there are 97,810 startups recognized by the DPIIT (Govt. of India) and they are eligible for the following benefits:
- Intellectual Property Rights (IPR) benefits
- Relaxation in public procurements norms
- Self-certification under Labor & Environment laws
- Tax Exemptions
- Fund of Funds for Startups (FFS)
- Faster exit for Startups
- Seed Fund Scheme
- Self Certification: Startups are allowed to self-certify their compliance under 9 Labor and 3 Environment laws for a period of 3 to 5 years from the date of incorporation through a mobile app. This reduces the regulatory burden on Startups, thereby allowing them to focus on their core business and keep compliance costs low. 28 Indian states are offering Self-Certification to startups under 9 Labor laws.
- Income Tax Exemption Notifications: The Department of Industrial Policy and Promotion validates startups for granting tax-related benefits. The board will certify startups for Income Tax Exemption on profits.
A DIPP recognized Startup is eligible to apply for a full deduction on the profits and gains from business, provided they meet the following criteria:
- A private limited company or a limited liability partnership,
- Incorporated on or after 1st April 2016 but before 31st March 2023, and
- The Start-up strives to innovate, develop or improve products, processes, services, or a scalable business model with the potential for employment generation.
- Seed Fund Scheme: https://seedfund.startupindia.gov.in/
Startup India Seed Fund Scheme aims to provide financial support and assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
This would enable them to be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. As the name of the scheme suggests, it is initiated to encourage even those innovators who might not have the required finances for the initial stages of their start-up.
A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application is eligible for the Seed Fund Scheme. Additionally, the startup applying to avail the benefit of the scheme must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.
Source: seedfund.startupindia.gov.in
- MAARG Mentorship: https://maarg.startupindia.gov.in/
The MAARG mentorship program is “Mentorship, Advisory, Assistance, Resilience and Growth Portal” for startups for facilitation and guidance across all sectors, functions, stages, and geographies of the start-up development process.
Key functions of the program are:
- AI engine to match relevant mentors and startups
- Track mentor and startup interactions to deliver impact
- Enable video calls and communication via the platform
- Mobile-friendly interface for ease of use
- Provide feedback, query, and grievance mechanism
- Startup India SHOWCASE: https://www.startupindia.gov.in/content/sih/en/startup_india_showcase.html
The Startup India Showcase is an online discovery platform for the most influential startups of the country carefully chosen through various DPIIT and Startup India programs. These are virtual profiles of those startups. Advantages of the Startup Showcase are:
- Visibility
- Networking
- Discovery
- Repository
One can apply for the Showcase.
India envisioned a utopia and has started to fulfill it.
“Now the employment generation is not confined merely to government services or factories, with job seekers becoming job creators. We are proud of the hard work and innovative ideas of our youth!”
~Piyush Goyal, Minister of Commerce & Industry, Govt. of India.