Lok Sabha Question No. 4639 (UNSTARRED), answered on 2023-03-29
Subject: Startup Enterprises
Ministry: COMMERCE AND INDUSTRY
Asked by: Malook Nagar

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4639. TO BE ANSWERED ON WEDNESDAY, THE 29 TH  MARCH, 2023.

## STARTUP ENTERPRISES

## 4639.  SHRI MALOOK NAGAR:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Government  has  identified  any  startup  enterprises  under  its ambitious programme;
- (b) if so, the details thereof;
- (c) if not, the reasons therefor;
- (d) whether any startups have been identified in the backward areas of the country and in Uttar Pradesh particularly from Western Uttar Pradesh; and
- (e) if so, the details thereof?

## 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) : The Government with an intent to build a strong ecosystem for nurturing innovation,  startups  and  encouraging  private  investments  in  startup ecosystem  of  the  country  launched  Startup  India  initiative  on  16th January 2016.

The  Government  recognises  eligible  entities  as  'startups'  under  the initiative. As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February 2019, entities are recognised as startups under Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT). Since the launch of Startup India initiative in 2016,  DPIIT  has  recognised  92,683  entities  as  startups  as  on  28 th February 2023.

- (c) : Does not arise.

| (d) & (e) :   | Under the Startup India initiative, the Government constantly undertakes various efforts for the development and growth of startup ecosystem across the country. Details of such programs implemented under Startup India initiative by the Government to support startups across the country are placed at Annexure-I . As on 28 th February 2023, Startups from every State and UT have been recognised. Approximately 47% of the recognised startups are from tier 2 and 3 cities.   |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS  (d) & (e)  OF  THE  LOK  SABHA USTARRED QUESTION NO. 4639 FOR ANSWER ON 29.03.2023

## 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:

- 1 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.
- 2 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.
- 3 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.
- 4 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.
- 5 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.
- 6 Support for  Intellectual  Property  Protection :  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 payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
- 7 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.
- 8 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 InterMinisterial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
- 9 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 that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration.
- 10 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.
- 11 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.
- 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 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.
- 14 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.
- 15 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.
- 16 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.
- 17 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.
- 18 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.
- 19 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.
- 20 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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## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PARTS  (d) & (e)  OF  THE  LOK  SABHA USTARRED QUESTION NO. 4639 FOR ANSWER ON 29.03.2023

District-wise Details of Recognized Startups (as on 28 th  February) from the State of Uttar Pradesh are as under:

| Districts of Uttar Pradesh   |   Number of Recognised Startups |
|------------------------------|---------------------------------|
| Agra                         |                             279 |
| Aligarh                      |                              83 |
| Allahabad                    |                             207 |
| Ambedkar Nagar               |                               4 |
| Amethi                       |                               8 |
| Amroha                       |                              10 |
| Auraiya                      |                              69 |
| Azamgarh                     |                              21 |
| Baghpat                      |                              19 |
| Bahraich                     |                              10 |
| Ballia                       |                              17 |
| Balrampur (UP)               |                               2 |
| Banda                        |                              15 |
| Barabanki                    |                              18 |
| Bareilly                     |                             121 |
| Basti                        |                              24 |
| Bhadohi                      |                              11 |
| Bijnor                       |                              28 |
| Budaun                       |                              12 |
| Bulandshahr                  |                              44 |
| Chandauli                    |                              19 |
| Chitrakoot                   |                               8 |
| Deoria                       |                              26 |
| Etah                         |                               5 |
| Etawah                       |                              23 |
| Faizabad                     |                              33 |
| Farrukhabad                  |                               9 |
| Fatehpur                     |                              15 |
| Firozabad                    |                              28 |
| Gautam Buddha Nagar          |                            2718 |
| Ghaziabad                    |                            1241 |
| Ghazipur                     |                              27 |
| Gonda                        |                              20 |
| Gorakhpur                    |                             156 |
| Hamirpur (UP)                |                              11 |
| Hapur                        |                              16 |
| Hardoi                       |                              15 |
| Hathras                      |                              17 |
| Jalaun                       |                              13 |
| Jaunpur                      |                              28 |
| Jhansi                       |                              87 |
| Kannauj                      |                              21 |
| Kanpur Dehat                 |                              25 |

| Districts of Uttar Pradesh   | Number of Recognised Startups   |
|------------------------------|---------------------------------|
| Kanpur Nagar                 | 405                             |
| Kasganj                      | 3                               |
| Kaushambi                    | 11                              |
| Kheri                        | 18                              |
| Kushinagar                   | 16                              |
| Lalitpur                     | 7                               |
| Lucknow                      | 1410                            |
| Maharajganj                  | 15                              |
| Mahoba                       | 6                               |
| Mainpuri                     | 16                              |
| Mathura                      | 79                              |
| Mau                          | 7                               |
| Meerut                       | 227                             |
| Mirzapur                     | 29                              |
| Moradabad                    | 100                             |
| Muzaffarnagar                | 53                              |
| Pilibhit                     | 14                              |
| Pratapgarh                   | 17                              |
| Raebareli                    | 18                              |
| Rampur                       | 27                              |
| Saharanpur                   | 89                              |
| Sambhal                      | 10                              |
| Sant Kabir Nagar             | 12                              |
| Shahjahanpur                 | 22                              |
| Shamli                       | 10                              |
| Shravasti                    | 2                               |
| Siddharth Nagar              | 3                               |
| Sitapur                      | 13                              |
| Sonbhadra                    | 22                              |
| Sultanpur                    | 25                              |
| Unnao                        | 28                              |
| Varanasi                     | 302                             |
| Grand Total                  | 8,579                           |

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