Lok Sabha Question No. 1533 (UNSTARRED), answered on 2021-07-28
Subject: Startups and Investors
Ministry: COMMERCE AND INDUSTRY
Asked by: Mohan Mandavi, Chunni Lal Sahu

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 1533. TO BE ANSWERED ON WEDNESDAY, THE 28 TH  JULY, 2021.

## STARTUPS AND INVESTORS

## 1533.  SHRI MOHAN MANDAVI: SHRI CHUNNI LAL SAHU:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

वाणिज्य  एवं उद्योग मंत्री

- (a) whether  the  Ministry  has  any  plans  to  ensure  conducive  atmosphere  for startups and investors in the country;
- (b)
- if so, the details thereof;
- (c) the number of investors benefitted during the last two years; and
- (d)
- if so, the details thereof and if not, the reasons therefor?

## ANSWER

## वाणिज्य  एवं उद्योग मंत्रालय में राज्य मंत्री (श्री सोम प्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b) : Yes sir. The Startup India initiative is a flagship initiative of Government of India which aims to build a strong ecosystem for nurturing innovation and Startups in the country. A 19-point Startup India Action Plan was launched in January 2016 which paved the way for the introduction of a number  of  policy  initiatives  to  build  a  strong,  conducive,  growthoriented environment  for Indian startups. Hon'ble Prime  Minister unveiled  Startup  India:  The  Way  Ahead  at  5  years  celebration  of Startup India on 16th January 2021 which includes actionable plans for promotion  of  ease  of  doing  business  for  startups,  greater  role  of technology in executing various reforms, building capacities of stakeholders  and  enabling  a  digital  Aatmanirbhar  Bharat.  The  key objectives  and  action  plan  of  'Startup  India:  The  Way  Ahead'  are  at
- Annexure - I .
- (c) & (d) : Out  of  several  schemes  for  startups,  there  is  one  scheme  'Fund  of Funds for Startups' (FFS) which directly invests in Alternative Investment Funds (AIFs). During the last two years, 31 AIFs have been benefitted under Fund of Funds for Startups (FFS) Scheme.

*******

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 1533 FOR ANSWER ON 28.07.2021.

## Objectives of 'Startup India: The Way Ahead'

- i. Foster  a  culture  of  innovation  amongst  citizens  and  students  in particular.
- ii. Promote  innovation  in  all  sectors  of  economy  across  the  country, including semi-urban and rural areas.
- iii. Support creative and innovative ideas through incubation and research and development to transform them into valuable products, processes or solutions to improve productivity and efficiency.
- iv. Create an environment of absorption of innovation in industry.
- v. Facilitate  public  organizations  to  assimilate  innovation  with  a  view  to improving public service delivery.
- vi. Promote  creation,  protection and  commercialization  of  intellectual property rights.
- vii. Make it easier to start, operate, grow and exit businesses by reducing regulatory compliances and costs.
- viii. Promote ease of access to capital for startups.
- ix. Incentivize domestic capital for investments into startups.
- x. Mobilize global capital for investments in Indian startups.
- xi. Keep control of startups with original promoters.
- xii. Provide access to global markets for Indian startups.

## Action Plan of 'Startup India: The Way Ahead':

1. Ease of Starting up - To reduce the compliance burden and enable startups to focus on their work without worrying about approvals or clearances.
2. Ease of Procurement - Mechanisms to be created for enabling procurement of products or processes based on innovative ideas to improve public service delivery
3. Deeper  Engagement  with  Cental  Ministries  and  CPSU -  To  encourage Central  Ministries  and  Central  Public  Sector  Undertakings  (CPSUs)  to  work proactively with and for the Indian startup ecosystem.
4. Promoting Startups in Every District - Encourage establishment of 'Startup India Access Centres' at every district to assist innovators and entrepreneurs in remote areas
5. Startup  India  Hub  -  Digital  Canvas  of  Indian  Startup  Ecosystem -To create  a  digital  canvas  and  a  holistic  one-stop-shop  for  India's  vast  and burgeoning startup ecosystem to enable continuous and seamless engagement  and  knowledge  exchange  between  all  relevant  ecosystem stakeholders and enablers complete information on Startup India Hub will be available in all Indian languages.
6. Establish New Incubators and Accelerators - To set up new incubators and accelerators in collaboration with State governments and the private sector to support 50,000 startups
7. Creation  of  Innovation  Zones  at  the  level  of  Urban  Local  Bodies -  To improve  governance  and  public  service  delivery  at  the  grassroots  level  by assimilating innovation.
8. National  Capacity  Development  Program -To  develop  capacities  of ecosystem  enablers  and  stakeholders  to  promote  a  more  inclusive  startup ecosystem.
9. Integrate  Academia  &  Innovation  to  Encourage  Entrepreneurship -  To amplify the innovation and entrepreneurship led ecosystem through academia
10. India as the New Global Destination - To position and promote India as the global hub for startup ecosystem.
11. Mobile Applications, Made In India for The World -  To promote 'Vocal for local'  and  to  create  a  comprehensive  ecosystem  for  the  development  and deployment of products and services developed by Indian startups.
12. Strengthen Indic  Languages  Ecosystem -Promote development of solutions and content in lndic languages.
13. Encourage Bharat Maps - Promote domestic mapping solutions and harness India's mapping capabilities for Indian startup ecosystem.

*******