Lok Sabha Question No. 289 (UNSTARRED), answered on 2021-02-03
Subject: Employment through Startup Companies
Ministry: COMMERCE AND INDUSTRY
Asked by: Dharambir Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 289. TO BE ANSWERED ON WEDNESDAY, THE 3RD FEBRUARY, 2021.

## EMPLOYMENT THROUGH STARTUP COMPANIES

## 289. SHRI DHARAMBIR SINGH:

Will the Minister of COMMERCE AND INDUSTRY वाणिज्य एवं उद्योग मंत्री

be pleased to state:

- (a) the  number of people who got employment from start-up companies during the last three years State wise including Haryana along with their contribution in the Gross Domestic Product (GDP);
- (b) the  total  number  of  startups  affected  during  COVID-19  pandemic  including  the closed and uninterrupted startups;
- (c) whether  the  private  investment  in  startups  has  stopped  or  declined  during  the COVID-19 pandemic and if so, the details thereof and the reasons therefor; and
- (d) the  steps  taken  by  the  Government  to  encourage  private  investment  in  the startups during the COVID-19 pandemic?

## ANSWER

## वाणिज ् य एवं उद्योग मंत्रालय में राज  ् यमंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) Sir,  as  on  30 th December 2020, the state  wise  number  of  people  employed  in Startup Company during the last 3 years, including Haryana, are as below:

| States         |   Calendar Year |   Calendar Year |   Calendar Year |
|----------------|-----------------|-----------------|-----------------|
| States         |            2018 |            2019 |            2020 |
| Maharashtra    |           19218 |           27980 |           34008 |
| Karnataka      |           13314 |           24884 |           28840 |
| Delhi          |           13730 |           16251 |           19511 |
| Uttar Pradesh  |            7990 |           10522 |           16624 |
| Haryana        |            5632 |           12985 |           12622 |
| Telangana      |            5366 |           10697 |            9654 |
| Gujarat        |            5487 |           10539 |            9577 |
| Tamil Nadu     |            4532 |            8274 |            8619 |
| Kerala         |            2614 |            5245 |            5727 |
| Rajasthan      |            3283 |            4177 |            5358 |
| Madhya Pradesh |            2480 |            4583 |            3628 |
| West Bengal    |            2398 |            4504 |            3694 |
| Andhra Pradesh |            1730 |            1969 |            3058 |
| Odisha         |            1923 |            2401 |            2357 |
| Bihar          |            1192 |            1244 |            2370 |
| Punjab         |             799 |            1368 |            1789 |
| Chhattisgarh   |            1120 |            1408 |            1134 |

| Jharkhand                                | 619    | 602      | 1456    |
|------------------------------------------|--------|----------|---------|
| Assam                                    | 829    | 733      | 877     |
| Uttarakhand                              | 629    | 834      | 759     |
| Jammu and Kashmir                        | 339    | 483      | 484     |
| Tripura                                  | 259    | 46       | 765     |
| Chandigarh                               | 240    | 399      | 428     |
| Goa                                      | 301    | 360      | 384     |
| Himachal Pradesh                         | 148    | 331      | 283     |
| Puducherry                               | 226    | 106      | 73      |
| Manipur                                  | 46     | 47       | 125     |
| Andaman and Nicobar Islands              | 11     | 67       | 32      |
| Dadra and Nagar Haveli and Daman and Diu | 2      | 29       | 31      |
| Mizoram                                  | 47     | 3        | 2       |
| Nagaland                                 | 9      | 10       | 32      |
| Meghalaya                                | 5      | 27       | 2       |
| Arunachal Pradesh                        | 10     | 12       | 0       |
| Sikkim                                   | 0      | 6        | 2       |
| Lakshadweep                              | 0      | 0        | 7       |
| Ladakh                                   | 0      | 0        | 3       |
| Total                                    | 96,528 | 1,53,126 | 174,315 |

The  above  data is  self-certified  information  which  is  given  by  Startups  during filling of Startup recognition form. So far the department has no data with respect to their contribution in the Gross Domestic Production.

(b)&(c) No such data is centrally compiled by this Department.

- (d) The Government has approved the following schemes to boost private investments in Startups:
- i) Fund  of  Funds  for  Startups  (FFS)"The  Fund  of  Funds  for  Startups (FFS) was approved by the Cabinet 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  objectives  of  Fund  of  Funds  include accelerating  innovation  driven  entrepreneurship  and  business  creation, mobilizing  larger  equity-like  resources  for  startups.  The  Fund  of  Funds does  not  directly  invest  in  startups,  instead  provides  capital  to  SEBIregistered Alternate 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 managing  this  Fund  through  selection  of  suitable  daughter  funds  and overseeing the disbursal of committed capital.
- ii) Startup  India  Seed  Fund  Scheme  (SISFS)  The  Startup  India  Seed Fund  Scheme  (SISFS)  has  been  approved  by  the  Government  in January,2021 with a corpus of Rs. 945 Crore for next 4 years starting from 2021-22. The scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trails, market entry and commercialization. This would enable these startups to graduate to a level where  they  will  be  able  to  raise  investments  from  angel  investors  or venture  capitalists,  or  seek  loans  from  commercial  banks  or  financial institutions. The Seed Fund will be disbursed to eligible startups through eligible incubators across India.