Lok Sabha Question No. 1289 (UNSTARRED), answered on 2022-02-09
Subject: Startup India Innovation Week
Ministry: COMMERCE AND INDUSTRY
Asked by: Kuldeep Rai Sharma

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

UNSTARRED QUESTION NO. 1289.

TO BE ANSWERED ON WEDNESDAY, THE 9 TH     FEBRUARY, 2022.

## STARTUP INDIA INNOVATION WEEK

## 1289.  SHRI KULDEEP RAI SHARMA:

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

- (a) whether the Government has organized the firstever Startup India Innovation Week  and if so, the details thereof along with the events organized and its outcome and achievement thereof;
- (b) the details of the programmes launched by the Government to promote startups across the country during each of the last three years and the current year;
- (c) the present status of Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme since their launch and whether these schemes have been successful in promoting Startup India initiative;
- (d) the details of support provided to women-led startups in the country, State/UTwise including Andaman and Nicobar Islands; and
- (e) the other steps taken by the Government to promote startup initiative 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): The  Government  organized  the first-ever Startup  India  Innovation Week from 10 th  to  16 th  of January,  2022  as  part  of  'Azadi  ka  Amrit Mahotsav' with the theme of 'Celebrating Innovation'. The details of the events organized during Startup India Innovation Week 2022 and the outcomes & achievements are placed at Annexure-I .
- (b) & (e): The Startup India initiative was launched in 2016 with the objective of building a strong ecosystem for nurturing innovation and entrepreneurship in the country. All initiatives are implemented across States,  cities,  towns  and  rural  areas.  Details  of  various  programs undertaken  under  Startup  India  initiative  since  inception  including those in the last three years are placed at Annexure-II .
- (c): The Fund of Funds for Startups Scheme (FFS) aims to mobilize funds available for equity investment through multiplier effect for startups. With a  corpus  of  Rs.  10,000  crore  spread  over  14th  and  15th  Finance Commission cycles, the FFS  does not directly invest into startups. It invests into SEBI- registered Alternative Investment Funds (AIFs), who in  turn  make investments into startups. The Scheme is operated and managed by Small Industries Development Bank of India (SIDBI). As on 31 st  January 2022, Rs. 6,495 crore has been committed by FFS to 80 AIFs. These AIFs have committed investments of Rs. 8,696 crore in 568 startups.

The  Scheme  has  been  successful  in  promoting  startups  by  way  of mobilizing capital and expanding AIF ecosystem in the country. It has played role of an anchor investor for majority of supported AIFs. It has also played a pivotal role in seeding domestic fund managers. Several beneficiary startups have reported exponential increase in valuation and number of them have even reported to have achieved unicorn status.

The  Startup  India  Seed  Fund  Scheme  (SISFS) aims  to  provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. This enables the 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. Rs. 945 crore has been sanctioned for period of 4 years starting from 2021-22. The funds are released  to  startups  through  approved  incubators.  The Scheme  has been launched in April 2021. As on 31st January 2022, Rs. 250.75 crore has been approved as grant to 63 incubators under the Scheme.

- (d): Promoting women entrepreneurship has been a key agenda for the Government. Out of the 62000+ DPIIT recognised startups, 46% of them have at-least one-woman director. As on 31 st  January 2022, a total of 31 startups from Andaman and Nicobar Islands have been recognized by DPIIT, out of which 13 startups have at least 1 woman director.

The  steps  taken  under  Startup  India  Initiative  to  promote  women entrepreneurship across the country,  which  are  also available for the women entrepreneurs of Andaman & Nicobar, are placed at Annexure-III.

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## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1289 FOR ANSWER ON 09.02.2022.

## Startup India Innovation Week

1. The Government virtually organised the first ever 'Startup India Innovation Week' from 10 th   to  16 th   of  January  2022.  The  week  commemorate  the  75 th   year  of  India's independence  'Azadi  Ka  Amrit  Mahotsav'  and  showcase  the  spread  and  depth  of entrepreneurship across India.
2. The  week's  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. Furthermore, to exchange knowledge on nurturing startup ecosystems; to develop entrepreneurial ecosystem capacities; to mobilise global and domestic capital for  startup  investments;  to  encourage  and  inspire  the  youth  for  innovation  and entrepreneurship; to provide market access opportunities to startups; and to showcase high-quality, high-technology, and frugal innovations from India.
3. With participation of States/UTs and various departments of the Government of India, the  week-long  program  addressed  key  aspects  of  the  startup  ecosystem  through interactive  sessions,  workshops,  and  presentations  based  on  themes  such  as Academia & Mentorship Support to Startups, Incubation and Acceleration Support to Startups, Market Access through Corporates & Government to Startups, and Funding & International Avenues to Go Global. In addition, based on the identified themes, there were various parallel activities such as Experience Booths, Pitching or Reverse Pitching Sessions, and Innovation Showcases.
4. Key events organised during Startup India Innovation Week are as under:
- i. Hon'ble Prime Minister's interaction with startups
- ii. Declaration of results of National Startup Awards 2021
- iii. Launch of Startup Champions 2.0 show on Doordarshan
- iv. Roundtable with Global Investors and domestic funds
- v. Unveiling  of  National  Rollout  Strategy  of  Open  Network  for  Digital  Commerce Digital Strategy
- vi. Plenary sessions in collaboration with various line ministries and departments.
- vii. Launch of 'Fisheries Startup Grand Challenge' by Department of Fisheries
- viii. Pitching sessions and corporate connect programs for startups from across the country.
5. Key outcomes of Startup India Innovation Week :  Startup India Innovation Week celebrated  the  spirit  of  innovation  and  entrepreneurship  and  saw  encouraging participation from senior government representatives, distinguished speakers, enablers and startups. Some of the key outcomes are as under:
- i. The  Hon'ble  Prime  Minister  during  his  interaction  with  startups,  declared  16th January as 'National Startup Day' to acknowledge, support and celebrate the
15. invaluable contribution of Indian entrepreneurs towards the growth of the country's economy.
- ii. Witnessed the participation of over 1,50,000 delegates.
- iii. The week hosted over 110 speakers through 59 key sessions.
- iv. Delivered targeted sessions, broadly focusing on innovation and sustainability, on leading  startup  practices  at  higher  educational  institutes  and  on  propelling  the Indian  incubator  landscape.  Furthermore,  workshops  across  a  range  of  topics were undertaken, including on funding avenues in the Indian startup ecosystem, support being provided by banks to startups, as well as on leveraging expansion strategies for an innovatively connected world.
- v. Officials  from  State  Governments  shared  replicable  good  practices  in  market access, incubation and funding.
- vi. More than 700 startups showcased their innovations at the exhibition. Startups at the exhibition ranged from a variety of sectors, including Agriculture to Aerospace, Drones to Cyber Security.
- vii. 250 startups were given an opportunity to present their pitches to an esteemed panel of more than 90 investors at the pitching sessions.
- viii. 75 Problem Statements from 11 corporates have been made open for startups during this event to engage and contribute with innovative solutions.
- ix. A Global Venture Capital roundtable was also conducted with the aim to mobilize domestic  and  global  capital  for  Indian  startups.  The  roundtable  saw  active participation  from  75  key  industry  leads  and  investors  from  Indian  and  Global ecosystems representing USD 30 billion Assets Under Management (AUM). The roundtable discussion covered topics like Indian Innovations for the Globe, Impact Investing, Sustainable Development Goals, Digital India, Vision Bharat for India at 100 Years of Independence; few other Global and Domestic Investors shared their valuable remarks on the theme of this VC Roundtable.
- x. The results of the National Startup Awards 2021 were declared.
- xi. Various initiatives were unveiled at Startup India Innovation Week with a mission to  drive  further  innovation,  including:  ONDC  National  Rollout  Strategy;  Amrit Grand Challenge - Jan Care; Fisheries Grand Challenge; Startup Champions 2.0 and Digilocker enabled certificate verification platform.

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## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PARTS (b) & (e)  OF THE LOK SABHA UNSTARRED QUESTION NO. 1289 FOR ANSWER ON 09.02.2022.

## Programs Launched under Startup India initiative

The  details  of  various  programs  undertaken  by  the  Government  to  promote startups across the country under Startup India initiative since inception, including those in the last three years are as under:

1. Startup India Action Plan (2016) : 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.
2. Fund  of  Funds  for  Startups  (FFS)  Scheme  (2016) :  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.
3. Regulatory Reforms (2016) : 49 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.
4. Ease of Procurement (2016) : To enable ease of procurement, Central Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in  public  procurement  for  all  Startups  subject  to  meeting  quality  and  technical specifications.  Further,  Government  e-Marketplace  (GeM)  Startup  Runway;  a dedicated  corner  for startups to sell products  &  services  directly to the Government.
5. Support for Intellectual Property Protection (2016) :  Startups are eligible for fast-tracked  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
6. payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
6. Self-Certification under Labour and Environmental laws (2016) : Startups are allowed to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
7. Income Tax Exemption for 3 years (2016) : Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognised 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.
8. International  Market  Access  to  Indian  Startups  (2017) :  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  13  countries  (Brazil,  Sweden, Russia,  Portugal,  UK,  Finland,  Netherlands,  Singapore,  Israel,  Japan,  South Korea, Canada, Croatia) that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration.
9. Faster Exit for Startups (2017) : 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.
10. Startup India Hub (2017) : 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.
11. States' Startup Ranking Framework (2018) : States' Startup Ranking Framework  is  a  first-of-its-kind  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  to  create  best Startup ecosystem. Two rounds of State ranking exercise have been conducted till date with far-reaching impact across the startup ecosystem of the country.
12. 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.
13. National  Startup  Awards  (2019) :  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 9 key
15. tracks  viz.  Investor  Connect,  Mentorship,  Corporate  Connect,  Govt.  Connect, International  Market  Access,  Regulatory  Support,  Benefits  under  Startup  India initiative, Startup Champions on Doordarshan and Startup India Showcase.
14. Startup India Showcase (2020) : 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.
15. National Startup Advisory Council (2020) :  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.
16. Startup India: The Way Ahead (2021) : 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.
17. Startup India Seed Fund Scheme (SISFS) (2021) : 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.
18. Startup Champions on Doordarshan (2021) :  Startup Champions program on Doordarshan was launched on 16th January 2021. It is telecasted in both Hindi and  English  across  Doordarshan  network  channels.  It  is  a  one-hour  weekly program covering stories of award winning/ nationally recognised startups. The startups which have been part of this program have reported exponential increase in their overall visibility, demand for their products and even investor interest.
19. Startup India Innovation Week (2022) : 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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## ANNEXURE-III

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1289 FOR ANSWER ON 09.02.2022.

## Encouraging Women Entrepreneurship under Startup India Initiative

1.  Women-owned business enterprises are playing a prominent role in the society inspiring others and generating more employment opportunities in the country. To promote flow of both equity and debt to women led startups, interactions of such women  entrepreneurs  with  venture  funds  supported  by  SIDBI  and  lending institutions  including  banks  are  being  organized  by  inviting  applications  on  the 'Startup India Hub' and inviting selected women entrepreneurs, after a process of screening by experts, to interact with these institutions for both equity/debt funding. Specific and suitable entrepreneurship development programmes for women led startups throughout the country are being designed by ascertaining the training/skilling needs of the target groups. To meet the advisory needs of the startups led by women, legal, tax, financial and other service providers are being sought to get them connected with each other through the Startup India Hub.
2.  Following steps have been taken under Startup India Initiative to promote women entrepreneurship all over India, benefits of which are also available for the women entrepreneurs in Andaman & Nicobar:-
- i. 10% of the fund (Rs 1000 crore) in the Fund of Funds operated by SIDBI has been reserved for women led startups, which will have a multiplier effect as Rs 1000 crore would mean overall corpus of Rs 7000 crore. All the AIFs where SIDBI takes equity have been mandated to contribute 20% in businesses which are  women  led,  women  influenced  and  women  employment  or  women consumption centric.
- ii. Women  Capacity  Development  Programme  (WING)  is  a  unique  Capacity Development  Program  for  women-led  startups,  to  identify  and  support  both aspiring and established women entrepreneurs in their startup journeys. The workshops are open to variety of business sectors including Tech, Construction, Product, Machine,  Food,  Agriculture, Education, etc.  The workshops served as a platform for emerging women entrepreneurs and other stakeholders to discuss the key challenges facing women entrepreneurs. WING workshops have created a conducive environment to share best practices and experiences in overcoming challenges and to gain insights learned from the business models adopted in the Indian context. A total of 24 workshops were conducted across 9 States, benefitting more than 1,300 women entrepreneurs.
- iii. Virtual  Incubation  Program  for  Women  Entrepreneurs  were  conducted  in collaboration with Zone Startups to support 20 women-led tech startups with pro-bono acceleration support for 3 months.
- iv. A  webpage  dedicated  to  women  entrepreneurs  has  been  designed  on  the Startup India portal. The page mentions in a collated format all the incentives for women entrepreneurs as per the State Startup Policies and has new blogs.

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