Lok Sabha Question No. 444 (STARRED), answered on 2019-07-24
Subject: Start-up India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Saptagiri Sankar Ulaka

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

STARRED QUESTION NO. 444. TO BE ANSWERED ON WEDNESDAY, THE 24 TH   JULY, 2019.

## START-UP INDIA SCHEME

## *444.  SHRI SAPTAGIRI SANKAR ULAKA:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the salient features of the start-up India Scheme and the number of registrations done under this scheme since its inception across the country, State/ UT-wise;
- (b) the  details  of  the  funds  sanctioned,  allocated  and  utilised  and  the  targets set/achieved thereunder so far, State/ UT-wise;
- (c) the details of the State Governments which have formulated start-up policies in their respective States at present;
- (d) the  names  of  the  top  five  States  with  the  highest  number  of  registrations  and execution of start-ups in the country; and
- (e) the number of registrations done under the scheme during the last two years in the State of Odisha?

## ANSWER वाणिज ् य एवं उद्योग मंत्री श्री पीयूष गोयल THE MINISTER OF COMMERCE & INDUSTRY

( ) (SHRI  PIYUSH GOYAL)

- (a) to (e): A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED  QUESTION NO. 444 FOR ANSWER ON 24 TH  JULY, 2019

- (a): Startup  India  initiative  was  announced  by  the  Prime  Minister  of  India  on  15 th August,  2015.  The  flagship  initiative  has  an  objective  to  build  a  strong  ecosystem  for  nurturing  innovation  and  Startups  in  the  country  that  will  drive sustainable economic growth and generate large scale employment opportunities.  Further to this, an Action Plan for Startup India was unveiled by the Prime Minister of India 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'. Salient features of these action points are at Annexure I. Since its inception, 20,028  Startups across the country have  been  recognised  by Department  for Promotion  of Industry and  Internal Trade  (DPIIT) as on 16.07.2019. The State-wise number of recognized Startups is at Annexure II.
- (b): Government of India has established a Fund of Funds for Startups (FFS) with corpus of Rs. 10,000 crores, 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 crores is envisaged to  be  provided  over  the  14 th and  15 th Finance  Commission  cycles  based  on progress of the scheme and availability of funds. As on July 10, 2019, SIDBI has committed Rs 3123.20 crore to 47 SEBI registered Alternative Investment Funds (AIFs). These funds have raised a corpus fund of INR 25,728 crore. Further, the AIFs have invested a total of Rs. 1,701.03 crore into 254 startups out of which Rs. 512.57 crore have been drawn from Fund of Funds for Startups. State/UTwise details of funds invested by the AIFs are at Annexure III.
- (c): A total of 26 States/UTs have notified and operational startup policies. The list of States/UTs with startup policies are provided at Annexure IV.
- (d): The details of top five States with highest number of recognised startups under Startup India initiative are at Annexure V.
- (e): A total of 311 start-ups from Odisha have been recognized by DPIIT till 30 th June 2019.

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## ANNEXURE REFERRED TO IN REPLY TO  PART (a) OF LOK SABHA  STARRED QUESTION  NO. 444 FOR ANSWER ON  24.07.2019

## Salient features of Startup India action plan

1. Compliance Regime based on Self-Certification with an objective to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.
2. Startup India Hub with an objective to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.
3. Rolling  out  of  Mobile  App  and  Portal with  an  objective  to  serve  as  the  single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders.
4. Legal Support and Fast-tracking Patent Examination at Lower Costs with  an objective  to  promote  awareness  and  adoption  of  IPRs  by  Startups  and  facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual  Property  services  and  resources,  including  fast-track  examination  of patent applications and rebate in fees.
5. Relaxed Norms of Public Procurement for Startups with an objective to provide an equal platform to Startups across sectors vis-à-vis the experienced entrepreneurs/ companies in public procurement.
6. Faster Exit for Startups with an objective to make it easier for Startups to wind up operations.
7. Providing  Funding  Support  through  Fund  of  Funds  with  a  Corpus  of  RS. 10,000  crores with  an  objective  to  provide  funding  support  for  development  and growth of innovation driven enterprises.
8. Credit Guarantee fund for Startups with objective to catalyze entrepreneurship by providing credit to innovators across all sections of society.
9. Tax Exemptions on Capital Gains with an objective to promote investments into Startups by mobilizing the capital gains arising from sale of capital assets.
10.  Tax Exemptions to startups for 3 Years with an objective to promote the growth of Startups and address working capital requirements.
11.  Tax  Exemption  on  Investments  above  Fair  Market  Value with  an  objective  to encourage seed-capital investment in Startups.
12.  Organizing Startup Fests for Showcasing  Innovation and Providing a Collaboration Platform with an objective to galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.
13.  Launch of Atal Innovation Mission (AIM) with an objective to serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses  and  other  self-employment  activities,  particularly  in  technology  driven areas.
14.  Harnessing  Private  Sector  Expertise  for  Incubator  Setup with  an  objective  to ensure  professional  management  of  Government  sponsored  /  funded  incubators, Government will create a policy and framework for setting-up of incubators across the country in public private partnership.
15.  Building  Innovation  Centers  at  National  Institutes with  an  objective  to  propel successful innovation through augmentation of incubation and R&D efforts.
16.  Setting up of 7 New Research Parks Modelled on the Research Park Setup at IIT Madras with an objective to propel successful innovation through incubation and joint R&D efforts between academia and Industry.
17.  Promoting Startups in the Biotechnology Sector with an objective to foster and facilitate bio-entrepreneurship.
18.  Launching of Innovation Focused Programs for Students with an objective to foster  a  culture  of  innovation  in  the  field  of  Science  and  Technology  amongst students.
19.  Annual  Incubator  Grand  Challenge with  an  objective  to  support  creation  of successful world class incubators in India.

## ANNEXURE REFERRED TO IN REPLY TO  PART (a) OF LOK SABHA  STARRED QUESTION  NO. 444 FOR ANSWER ON  24.07.2019

## Number of recognized Startups under Startup India initiative (State/UT wise)

| S. No.      | State/UT                    | No. of Recognised Startups   |
|-------------|-----------------------------|------------------------------|
| 1           | Andaman and Nicobar Islands | 6                            |
| 2           | Andhra Pradesh              | 336                          |
| 3           | Arunachal Pradesh           | 3                            |
| 4           | Assam                       | 142                          |
| 5           | Bihar                       | 263                          |
| 6           | Chandigarh                  | 79                           |
| 7           | Chhattisgarh                | 258                          |
| 8           | Dadra and Nagar Haveli      | 4                            |
| 9           | Daman and Diu               | 2                            |
| 10          | Delhi                       | 2,634                        |
| 11          | Goa                         | 82                           |
| 12          | Gujarat                     | 1,026                        |
| 13          | Haryana                     | 1,096                        |
| 14          | Himachal Pradesh            | 40                           |
| 15          | Jammu and Kashmir           | 86                           |
| 16          | Jharkhand                   | 161                          |
| 17          | Karnataka                   | 2,938                        |
| 18          | Kerala                      | 883                          |
| 19          | Madhya Pradesh              | 554                          |
| 20          | Maharashtra                 | 3,783                        |
| 21          | Manipur                     | 14                           |
| 22          | Meghalaya                   | 4                            |
| 23          | Mizoram                     | 3                            |
| 24          | Nagaland                    | 8                            |
| 25          | Odisha                      | 352                          |
| 26          | Pondicherry                 | 23                           |
| 27          | Punjab                      | 149                          |
| 28          | Rajasthan                   | 557                          |
| 29          | Sikkim                      | 2                            |
| 30          | Tamil Nadu                  | 1,038                        |
| 31          | Telangana                   | 1,116                        |
| 32          | Tripura                     | 6                            |
| 33          | Uttar Pradesh               | 1,621                        |
| 34          | Uttarakhand                 | 164                          |
| 35          | West Bengal                 | 595                          |
| Grand Total | Grand Total                 | 20,028                       |

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA  STARRED QUESTION  NO. 444 FOR ANSWER ON  24.07.2019

## State-wise  distribution  of  investment  made  by  AIFs  under  Fund  of  Funds  for Startups

| State          |   No of Startups Invested in | Investment made by AIFs in Rs. (in crore)   |
|----------------|------------------------------|---------------------------------------------|
| Karnataka      |                           79 | 538.3                                       |
| Maharashtra    |                           69 | 489.0                                       |
| Delhi          |                           46 | 252.9                                       |
| Haryana        |                           12 | 120.5                                       |
| Tamil Nadu     |                           10 | 88.3                                        |
| Kerala         |                            8 | 10.9                                        |
| Telangana      |                            6 | 28.2                                        |
| Rajasthan      |                            5 | 40.3                                        |
| Uttar Pradesh  |                            5 | 47.6                                        |
| Madhya Pradesh |                            4 | 5.1                                         |
| west bengal    |                            4 | 48.8                                        |
| Foreign entity |                            2 | 2.7                                         |
| Gujarat        |                            1 | 3.1                                         |
| Punjab         |                            1 | 14.5                                        |
| Telengana      |                            1 | 10.5                                        |
| Uttarakhand    |                            1 | 0.2                                         |
| Total          |                          254 | 1,701                                       |

## ANNEXURE REFERRED TO IN REPLY TO  PART (c) OF LOK SABHA  STARRED QUESTION  NO. 444 FOR ANSWER ON  24.07.2019

## States/Union Territories in which Startup policies have been formulated

1.  Andaman and Nicobar Islands
2.  Andhra Pradesh
3.  Assam
4.  Bihar
5.  Chhattisgarh
6.  Goa
7.  Gujarat
8.  Haryana
9.  Himachal Pradesh
10.  Jammu and Kashmir
11.  Jharkhand
12.  Karnataka
13.  Kerala
14.  Madhya Pradesh
15.  Maharashtra
16.  Odisha
17.  Rajasthan
18.  Telangana
19.  Uttar Pradesh
20.  Uttarakhand
21.  West Bengal
22.  Tamil Nadu
23.  Manipur
24.  Punjab
25.  Sikkim
26.  Nagaland

Annexure V ANNEXURE REFERRED TO IN REPLY TO  PART (d) OF LOK SABHA  STARRED QUESTION  NO. 444 FOR ANSWER ON  24.07.2019 Details  of  Top  five  States  in  the  country  with  highest  number  of  recognized Startups uder Startup India initiative

|   S.No. | State         | No. of Recognized Startups   |
|---------|---------------|------------------------------|
|       1 | Maharashtra   | 3,783                        |
|       2 | Karnataka     | 2,938                        |
|       3 | Delhi         | 2,634                        |
|       4 | Uttar Pradesh | 1,621                        |
|       5 | Telangana     | 1,116                        |

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