|
Getting your Trinity Audio player ready...
|
As a major achievement in its digital economy strategy, India has officially recognised 140,803 entities as startups through the Department for Promotion of Industry and Internal Trade (DPIIT). Among these, over 67,000 startups have at least one woman director, highlighting the country’s commitment to gender inclusivity in its digital ambitions. This achievement underscores India’s efforts to build a diverse and innovative entrepreneurial ecosystem that aligns with its broader goals of digital transformation and economic advancement.
Since the inception of the Startup India initiative, the programme has catalysed significant economic activity, creating over 1.55 million direct jobs. This success highlights the initiative’s effectiveness in stimulating job creation and supporting entrepreneurial ventures across the nation.
The Indian government has introduced a comprehensive Action Plan to nurture a vibrant startup ecosystem. This plan comprises 19 key action items, including simplification and handholding, funding support and incentives, and fostering industry-academia partnerships and incubation. These measures are designed to address the diverse needs of startups and create an environment conducive to innovation and growth.
One of the cornerstone programmes is the Startup India Seed Fund Scheme. This scheme provides crucial financial support for startups at various stages, including proof of concept, prototype development, product trials, market entry and commercialisation. With ₹945 crore (US$114 million) allocated for the period starting from 2021-22, the scheme aims to bridge the funding gap often faced by early-stage startups.
Additionally, the Fund of Funds for Startups (FFS) Scheme, with a corpus of ₹10,000 crore (US$1.2 billion), supports startups at multiple stages, from early-stage to growth stage. Managed by the Small Industries Development Bank of India (SIDBI), the FFS scheme not only provides capital but also encourages the development of domestic venture capital funds, reducing reliance on foreign investments.
The Credit Guarantee Scheme for Startups (CGSS) enhances access to capital by providing credit guarantees for loans extended to DPIIT-recognised startups by banks, non-banking financial companies (NBFCs), and venture debt funds. This scheme aims to reduce the risk associated with lending to startups, thereby facilitating their access to necessary financing.
Regulatory reforms have also been pivotal in supporting startups. Over 55 regulatory changes have been implemented to improve ease of doing business, ease capital raising, and reduce compliance burdens. Measures such as self-certification under labour and environmental laws further support startups by allowing them to self-certify compliance for up to five years from their incorporation.
The government has introduced various other initiatives to support startups. The Startup India Hub is an online platform that connects startups with investors, mentors, academic institutions, and other ecosystem stakeholders. The National Mentorship Portal offers access to mentorship across the country, while the Startup India Showcase highlights promising startups in sectors like fintech, health tech, and edtech.
Internationally, the government has worked to integrate Indian startups into global ecosystems through partnerships and international forums. Initiatives like the Startup India Innovation Week and bridges with around 20 countries provide platforms for Indian startups to showcase their innovations and explore global opportunities.
Regional support includes the ASCEND programme’s workshops in the North-East to foster local entrepreneurship and the North-East Region Entrepreneurship & Startup Summit (NERES), which helps startups pitch ideas and connect with mentors and investors.
The Atal Innovation Mission and National Initiative for Developing and Harnessing Innovations also nurture young innovators and knowledge-based startups, while Innovations for Defence Excellence supports defence and aerospace innovations through startups and research institutions.
India’s multifaceted approach to supporting startups and women entrepreneurs reflects its digital and economic goals. This comprehensive strategy aims to build a vibrant entrepreneurial ecosystem, positioning India as a global leader in digital and technological advancements.
