Lok Sabha Question No. 927 (UNSTARRED), answered on 2023-02-08
Subject: Startups
Ministry: COMMERCE AND INDUSTRY
Asked by: Su Thirunavukkarasar

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

## LOK SABHA

UNSTARRED QUESTION NO. 927.

TO BE ANSWERED ON WEDNESDAY, THE 08 TH  FEBRUARY, 2023.

## STARTUPS

## 927.   SHRI THIRUNAVUKKARASAR SU:

Will the Minister of COMMERCE AND INDUSTRY

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  number  of  startups  have  greatly  increased  and  are  being recognized in the country in the last few years;
- (b) if so, the details thereof, sector-wise;
- (c) whether all districts in the country have atleast one startup more particularly in Tamil Nadu;
- (d) if so, the details thereof; and
- (e) the steps taken by the Government to further promote startups and generate more employment opportunities in various sectors in the country?

## 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, as a result of sustained Government efforts, the number of            recognized startups  has  increased  from  445  in  2016  to  86,713  in  2022  (as  on  31st December 2022). The year-wise and sector-wise details of number of startups recognised is placed at Annexure-I .
- (c) & (d): Various measures have been undertaken by the Government under the Startup India  initiative  to  encourage  and  promote  innovation  and  entrepreneurship across the country. As a result, as on date, there is at least one recognised startup in every State and UT spread across over 80% of the districts across the  nation.  Particularly  for  the  State  of  Tamil  Nadu,  there  is  at  least  one recognised startup in 32 districts (approx. 84% coverage). The district-wise distribution of the number of DPIIT recognised startups in the State of Tamil Nadu is placed at Annexure-II.

be pleased to state:

- (e): Under  the  Startup  India  initiative,  the  Government  constantly  undertakes various  efforts  for  the  development  and  growth  of  startup  ecosystem  in  the country.

The flagship Schemes namely, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) support startups at various stages of their business cycle to enable startups to graduate to a level where they are able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. The  Government  also  implements  flagship  annual  exercises  and  programs including States' Startup Ranking, National Startup Awards and Innovation Week which play an important role in holistic development of the startup ecosystem. The Government  also  facilitates  participation  and  engagement  of  Indian  startup ecosystem at international platforms. Details of such programs implemented under Startup India initiative by the Government to support startups in the country are placed as Annexure-III .

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Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO  PARTS (a) & (b) OF THE LOK SABHA USTARRED QUESTION NO. 927 FOR ANSWER ON 08.02.2023

## Year-wise and sector-wise distribution of DPIIT recognised startups as on 31 st  December, 2022

|    | Industry                            |   2016 |   2017 |   2018 |   2019 |   2020 | 2021   | 2022   | Total   |
|----|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|
|  1 | Advertising                         |      0 |     50 |     90 |    113 |    107 | 125    | 136    | 621     |
|  2 | Aeronautics Aerospace & Defence     |      0 |     28 |     73 |     97 |    111 | 208    | 333    | 850     |
|  3 | Agriculture                         |      1 |    168 |    306 |    520 |    630 | 1,101  | 1,540  | 4,266   |
|  4 | AI                                  |      0 |     70 |    213 |    336 |    291 | 324    | 306    | 1,540   |
|  5 | Airport Operations                  |      0 |      0 |      0 |      0 |      2 | 3      | 4      | 9       |
|  6 | Analytics                           |      0 |     57 |    100 |    112 |     95 | 143    | 108    | 615     |
|  7 | Animation                           |      0 |      5 |     11 |     13 |     15 | 13     | 28     | 85      |
|  8 | AR VR (Augmented + Virtual Reality) |      0 |     39 |     66 |     90 |     58 | 90     | 115    | 458     |
|  9 | Architecture Interior Design        |      0 |     19 |     46 |     66 |     97 | 98     | 157    | 483     |
| 10 | Art & Photography                   |      0 |     35 |     32 |     39 |     44 | 48     | 96     | 294     |
| 11 | Automotive                          |      1 |     82 |    140 |    179 |    260 | 418    | 726    | 1,806   |
| 12 | Biotechnology                       |      0 |      0 |      0 |      0 |     11 | 99     | 123    | 233     |
| 13 | Chemicals                           |      0 |     15 |     40 |     60 |    117 | 213    | 293    | 738     |
| 14 | Computer Vision                     |      0 |     21 |     31 |     43 |     47 | 47     | 31     | 220     |
| 15 | Construction                        |      1 |     79 |    205 |    346 |    558 | 870    | 1,429  | 3,488   |
| 16 | Dating Matrimonial                  |      0 |      3 |      8 |     13 |     12 | 14     | 25     | 75      |
| 17 | Design                              |      0 |     51 |    102 |     96 |    118 | 113    | 125    | 605     |
| 18 | Education                           |      0 |    295 |    739 |    770 |    929 | 1,298  | 1,619  | 5,650   |
| 19 | Enterprise Software                 |      0 |    141 |    233 |    309 |    257 | 288    | 372    | 1,600   |
| 20 | Events                              |      0 |     21 |     40 |     59 |     63 | 80     | 88     | 351     |
| 21 | Fashion                             |      2 |     60 |    110 |    129 |    190 | 240    | 413    | 1,144   |
| 22 | Finance Technology                  |      0 |    154 |    231 |    428 |    469 | 592    | 886    | 2,760   |
| 23 | Food & Beverages                    |      0 |    170 |    357 |    532 |    643 | 1,010  | 1,469  | 4,181   |
| 24 | Green Technology                    |      1 |    128 |    266 |    380 |    352 | 312    | 503    | 1,942   |

|    | Industry                           |   2016 |   2017 | 2018   | 2019   | 2020   | 2021   | 2022   | Total   |
|----|------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|
| 25 | Healthcare & Lifesciences          |     43 |    468 | 736    | 993    | 1,402  | 1,893  | 2,553  | 8,088   |
| 26 | House-Hold Services                |      0 |     39 | 72     | 89     | 113    | 101    | 172    | 586     |
| 27 | Human Resources                    |      0 |     50 | 140    | 210    | 325    | 382    | 711    | 1,818   |
| 28 | Indic Language Startups            |     15 |     58 | 0      | 0      | 13     | 61     | 103    | 250     |
| 29 | Internet of Things                 |      0 |    133 | 259    | 289    | 242    | 223    | 239    | 1,385   |
| 30 | IT Services                        |      1 |    576 | 1,355  | 1,599  | 1,941  | 2,209  | 2,738  | 10,419  |
| 31 | Logistics                          |      0 |      0 | 0      | 0      | 17     | 168    | 175    | 360     |
| 32 | Marketing                          |      0 |     67 | 239    | 261    | 363    | 347    | 451    | 1,728   |
| 33 | Media & Entertainment              |      0 |     86 | 161    | 217    | 241    | 268    | 357    | 1,330   |
| 34 | Nanotechnology                     |      0 |     10 | 18     | 24     | 28     | 25     | 37     | 142     |
| 35 | Non- Renewable Energy              |      0 |     11 | 23     | 35     | 400    | 761    | 374    | 1,604   |
| 36 | Other Specialty Retailers          |      0 |     28 | 63     | 72     | 159    | 110    | 152    | 584     |
| 37 | Passenger Experience               |      0 |      0 | 0      | 0      | 0      | 4      | 5      | 9       |
| 38 | Pets & Animals                     |      0 |     12 | 21     | 29     | 34     | 50     | 81     | 227     |
| 39 | Professional & Commercial Services |      0 |    185 | 375    | 489    | 781    | 1,120  | 1,281  | 4,231   |
| 40 | Real Estate                        |      0 |     34 | 79     | 123    | 125    | 119    | 258    | 738     |
| 41 | Renewable Energy                   |      3 |    133 | 279    | 299    | 364    | 518    | 682    | 2,278   |
| 42 | Retail                             |      0 |    112 | 238    | 282    | 410    | 406    | 575    | 2,023   |
| 43 | Robotics                           |      0 |     27 | 69     | 92     | 84     | 88     | 112    | 472     |
| 44 | Safety                             |      0 |     12 | 25     | 34     | 55     | 69     | 80     | 275     |
| 45 | Security Solutions                 |      0 |     36 | 82     | 102    | 150    | 242    | 296    | 908     |
| 46 | Social Impact                      |      1 |     37 | 62     | 82     | 87     | 133    | 138    | 540     |
| 47 | Social Network                     |      0 |     57 | 81     | 124    | 109    | 124    | 136    | 631     |
| 48 | Sports                             |      0 |     25 | 41     | 66     | 83     | 87     | 118    | 420     |
| 49 | Technology Hardwa re               |      2 |    143 | 254    | 331    | 555    | 577    | 871    | 2,733   |
| 50 | Telecommunication & Networking     |      1 |     47 | 101    | 94     | 160    | 186    | 237    | 826     |
| 51 | Textiles & Apparel                 |      0 |     57 | 98     | 124    | 197    | 307    | 457    | 1,240   |
| 52 | Toys and Games                     |      0 |      0 | 0      | 0      | 4      | 79     | 102    | 185     |

|       | Industry                 |   2016 | 2017   | 2018   | 2019   | 2020   | 2021   | 2022   | Total   |
|-------|--------------------------|--------|--------|--------|--------|--------|--------|--------|---------|
| 53    | Transportation & Storage |      1 | 97     | 162    | 251    | 285    | 254    | 328    | 1,378   |
| 54    | Travel & Tourism         |      1 | 67     | 192    | 264    | 206    | 242    | 365    | 1,337   |
| 55    | Waste Management         |      0 | 0      | 0      | 0      | 23     | 199    | 311    | 533     |
| 56    | Not Identified           |    371 | 837    | 5      | 0      | 89     | 981    | 1,138  | 3,421   |
| Total | Total                    |    445 | 5,135  | 8,669  | 11,305 | 14,521 | 20,080 | 26,558 | 86,713  |

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Annexure-II

## ANNEXURE REFERRED TO IN REPLY TO  PARTS (c) & (d) OF THE LOK SABHA USTARRED QUESTION NO. 927 FOR ANSWER ON 08.02.2023

## District-wise distribution of DPIIT recognised startups in the State of Tamil Nadu as on 31 st  December, 2022

| S. No.   | Districts of Tamil Nadu   | Number of DPIIT Recognized Startups   |
|----------|---------------------------|---------------------------------------|
| 1        | Ariyalur                  | 6                                     |
| 2        | Chennai                   | 2,393                                 |
| 3        | Coimbatore                | 645                                   |
| 4        | Cuddalore                 | 34                                    |
| 5        | Dharmapuri                | 22                                    |
| 6        | Dindigul                  | 48                                    |
| 7        | Erode                     | 95                                    |
| 8        | Kanchipuram               | 537                                   |
| 9        | Kanyakumari               | 61                                    |
| 10       | Karur                     | 26                                    |
| 11       | Krishnagiri               | 62                                    |
| 12       | Madurai                   | 149                                   |
| 13       | Nagapattinam              | 11                                    |
| 14       | Namakkal                  | 52                                    |
| 15       | Perambalur                | 2                                     |
| 16       | Pudukkottai               | 11                                    |
| 17       | Ramanathapuram            | 16                                    |
| 18       | Salem                     | 76                                    |
| 19       | Sivaganga                 | 16                                    |
| 20       | Thanjavur                 | 50                                    |
| 21       | The Nilgiris              | 19                                    |
| 22       | Theni                     | 21                                    |
| 23       | Thoothukudi               | 36                                    |
| 24       | Tiruchirappalli           | 131                                   |
| 25       | Tirunelveli               | 42                                    |
| 26       | Tiruppur                  | 71                                    |
| 27       | Tiruvallur                | 211                                   |
| 28       | Tiruvannamalai            | 19                                    |
| 29       | Tiruvarur                 | 12                                    |
| 30       | Vellore                   | 68                                    |
| 31       | Viluppuram                | 20                                    |
| 32       | Virudhunagar              | 38                                    |
| 33       | Not defined               | 4                                     |
|          | Total                     | 5,004                                 |

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO    PART  (e)  OF  THE  LOK  SABHA USTARRED QUESTION NO. 927 FOR ANSWER ON 08.02.2023

## Programs Implemented under Startup India initiative

The details of various programs undertaken by the Government to promote startups under Startup India initiative across the country are as under:

-  Startup India Action Plan : An Action Plan for Startup India was unveiled on 16 th 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'.  The  Action  Plan  laid  the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
-  Fund of Funds for Startups (FFS) Scheme : The Government has established FFS with corpus of Rs. 10,000 crore, 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 crore is envisaged to  be  provided  over  the  14th  and  15th  Finance  Commission  cycles  based  on progress  of  the  scheme  and  availability  of  funds.  It  has  not  only  made  capital available for startups at early stage, seed stage and growth stage but also played a  catalytic  role  in  terms  of  facilitating  raising  of  domestic  capital,  reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
-  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  startups  by  Scheduled Commercial  Banks,  Non-Banking  Financial  Companies  (NBFCs)  and  Venture Debt Funds (VDFs) under SEBI registered Alternative Investment Funds. CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
-  Regulatory Reforms : Over 50 regulatory reforms have been undertaken by the Government since 2016 to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem.
-  Ease  of  Procurement :  To  enable  ease  of  procurement,  Central  Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all DPIIT recognised startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) Startup Runway  has  been  developed  which  is  a  dedicated  corner  for  startups  to  sell products and services directly to the Government.
-  Support  for  Intellectual  Property  Protection :  Startups  are  eligible  for  fasttracked patent application examination and disposal. The Government launched Start-ups Intellectual Property Protection (SIPP) which facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees. Facilitators under this

Scheme are  responsible  for  providing  general  advisory  on  different  IPRs,  and information on protecting and promoting IPRs in other countries. The Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable. Startups are provided  with  an  80%  rebate  in  filing  of  patents  and  50%  rebate  in  filling  of trademark vis-a-vis other companies.

-  Self-Certification under Labour and Environmental laws : Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
-  Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016  can  apply  for  income  tax  exemption.  The  recognized  startups  that  are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
-  International Market Access to Indian Startups : One of the key objectives under the Startup India initiative is to help connect Indian startup ecosystem to global startup  ecosystems  through  various  engagement  models.  This  has  been  done though  international  Government  to  Government  partnerships,  participation  in international  forums  and  hosting  of  global  events.  Startup  India  has  launched bridges  with  over  15  countries  (Brazil,  Sweden,  Russia,  Portugal,  UK,  Finland, Netherlands, Singapore, Israel, Japan, South Korea, Canada, Croatia, Qatar and UAE) that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration.
-  Faster Exit for  Startups : The  Government has notified Startups  as  'fast  track firms' enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
-  Startup India Hub : The Government launched a Startup India Online Hub on 19 th June  2017  which  is  one  of  its  kind  online  platform  for  all  stakeholders  of  the entrepreneurial  ecosystem  in  India  to  discover,  connect  and  engage  with  each other.  The  Online  Hub  hosts  Startups,  Investors,  Funds,  Mentors,  Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.
-  Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019) : A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act.
-  Startup India Showcase : Startup India Showcase is an online discovery platform for the most promising startups of the country chosen through various programs for startups exhibited in a form of virtual profiles. The startups showcased on the platform have distinctly emerged as the best in their fields. These innovations span across  various  cutting-edge  sectors  such  as  Fintech,  EntrepriseTech,  Social Impact, HealthTech, EdTech, among others. These startups are solving critical problems  and  have  shown  exceptional  innovation  in  their  respective  sectors. Ecosystem  stakeholders  have  nurtured  and  supported  these  startups,  thereby validating their presence on this platform.
-  National Startup Advisory Council : The Government in January 2020 notified constitution of the National Startup Advisory Council to advise the Government on measures needed to build a strong ecosystem for nurturing innovation and startups
- in  the  country  to  drive  sustainable  economic  growth  and  generate  large  scale employment  opportunities.  Besides  the  ex-officio  members,  the  council  has  a number  of  non-official  members,  representing  various  stakeholders  from  the startup ecosystem.
-  Startup  India:  The  Way  Ahead :  Startup  India:  The  Way  Ahead  at  5  years celebration of  Startup India  was  unveiled  on  16 th   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.
-  Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for  entrepreneurs  at  the  early  stages  of  growth  of  an  enterprise.  The  capital required at this stage often presents a make-or-break situation for startups with good business ideas. The Scheme aims to provide financial assistance to startups for  proof  of  concept,  prototype  development,  product  trials,  market  entry  and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22.
-  National  Startup  Awards  (NSA) :  National  Startup  Awards  is  an  initiative  to recognize  and  reward  outstanding  startups  and  ecosystem  enablers  that  are building  innovative  products  or  solutions  and  scalable  enterprises,  with  high potential of employment generation or wealth creation, demonstrating measurable social impact. Handholding support is provided to all the finalists across various tracks  viz.  Investor  Connect,  Mentorship,  Corporate  Connect,  Govt.  Connect, International Market Access, Regulatory Support, Startup Champions on Doordarshan and Startup India Showcase, etc.
-  States' Startup Ranking Framework (SRF) : States' Startup Ranking Framework is a unique initiative to harness strength of competitive federalism and create a flourishing startup ecosystem in the country. The major objectives of the ranking exercise  are  facilitating  states  to  identify,  learn  and  replace  good  practices, highlighting the policy intervention by states for promoting startup ecosystem and fostering competitiveness among states.
-  Startup Champions on Doordarshan : Startup Champions program on Doordarshan is a one-hour weekly program covering stories of award winning/ nationally recognised startups. It is telecasted in both Hindi and English across Doordarshan network channels.
-  Startup  India  Innovation  Week :  The  Government  organises  Startup  India Innovation week around the National Startup Day i.e. 16 th  January, with the primary goal was to bring together the country's key startups, entrepreneurs, investors, incubators, funding entities, banks, policymakers, and other national/international stakeholders to celebrate entrepreneurship and promote innovation.

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