MANU/PIBU/3574/2023
Department/Board : Press Information Bureau
Date : 06.12.2023
Startup India initiative to build a strong ecosystem for nurturing innovation, startups and encouraging investments in the country
Government recognizes 1,14,902 entities as startups as on 31st October 2023
The Startup India initiative was launched by the Government on 16th January 2016 to build a strong ecosystem for nurturing innovation, startups and encouraging investments in the startup ecosystem of the country. This information has been provided by the Union Minister of State for Commerce and Industry, Shri Som Parkash in a written reply in the Lok Sabha today.
In order to meet these objectives, the Government unveiled an Action Plan for
startups comprising of 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 hand holding", "Funding
support and incentives" and "Industry-academia partnership and incubation".
For attaining specific objectives, various programs are implemented by the Government under the Startup India initiative. As a result of sustained efforts, the Government has recognised 1,14,902 entities as startups as on 31st October 2023.
Realising the action items of the Startup India Action Plan, the Government
is implementing flagship Schemes under Startup India initiative namely,
Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and
Credit Guarantee Scheme for Startups (CGSS) to support startups at various
stages of their business cycle to enable startups to graduate to a level where
they are able to raise investments or seek loans. The brief of each of these
three Schemes is placed at Annexure-I.
ANNEXURE-I
The brief of each of the three flagship Schemes implemented under Startup India initiative:
Startup India Seed Fund Scheme (SISFS): The Startup India Seed Fund Scheme has been approved for the period of 4 years starting from 2021-22 with a corpus of Rs. 945 crore. The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. The Scheme is implemented from 1stApril 2021. The Experts Advisory Committee (EAC), under SISFS, is responsible for the overall execution and monitoring of SISFS. The EAC evaluates and selects incubators for allocation of funds under the Scheme. As per provisions of the Scheme, the selected incubators shortlist startups based on parameters outlined in Scheme guidelines.
Fund of Funds for Startups (FFS) Scheme: 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. The Scheme is
operationalized by Small Industries Development Bank of India (SIDBI). 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. 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 2
times of the amount committed under FFS in startups.
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 start........