Lok Sabha Question No. 1030 (UNSTARRED), answered on 2023-02-08
Subject: Registered Startups
Ministry: COMMERCE AND INDUSTRY
Asked by: Pradeep Kumar Singh, Geeta Kora, Jugal Kishore Sharma, Riti Pathak, Parbatbhai Savabhai Patel

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

## LOK SABHA

UNSTARRED QUESTION NO. 1030.

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

## REGISTERED STARTUPS

1030.  SHRI PRADEEP KUMAR SINGH: SHRIMATI GEETA KORA: SHRI JUGAL KISHORE SHARMA: SHRIMATI RITI PATHAK: SHRI PARBATBHAI SAVABHAI PATEL:

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

- (a) the year-wise total number of startups registered in Jharkhand, Jammu and Kashmir, Bihar, Madhya Pradesh and Gujarat respectively during the last three years;
- (b) the number of employment opportunities created through the said startups in Jharkhand, Jammu and Kashmir, Bihar, Madhya Pradesh and Gujarat; and
- (c) the schemes being formulated to encourage startups in the aforesaid States?

## 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): 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 86,713 entities as startups as on 31 st  December 2022.

From the States of Jharkhand, Jammu and Kashmir, Bihar, Madhya Pradesh and Gujarat, 8,874 entities have been recognised as startups by the DPIIT in the last three years (2020, 2021 and 2022). The year-wise details are as under:

|                   | Number of entities recognised as startups by DPIIT   | Number of entities recognised as startups by DPIIT   | Number of entities recognised as startups by DPIIT   | Number of entities recognised as startups by DPIIT   |
|-------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|
|                   | 2020                                                 | 2021                                                 | 2022                                                 | Total                                                |
| Jharkhand         | 163                                                  | 191                                                  | 239                                                  | 593                                                  |
| Jammu and Kashmir | 64                                                   | 132                                                  | 171                                                  | 367                                                  |
| Bihar             | 258                                                  | 389                                                  | 525                                                  | 1,172                                                |
| Madhya Pradesh    | 423                                                  | 557                                                  | 897                                                  | 1,877                                                |
| Gujarat           | 878                                                  | 1,709                                                | 2,278                                                | 4,865                                                |
| Total             | Total                                                | Total                                                | Total                                                | 8,874                                                |

- (b): The  DPIIT  recognised  startups  from  the  States  of  Jharkhand,  Jammu  and Kashmir, Bihar, Madhya Pradesh and Gujarat have reported to have created a total        of 1,15,878 direct jobs as on 31 st  December 2022. The state-wise details are as under:
- (c): Under the Startup India initiative, the Government constantly undertakes various efforts for the development and growth of startup ecosystem across the country including the States of Jharkhand, Jammu and Kashmir, Bihar, Madhya Pradesh and Gujarat.

| State             | No. of direct jobs created by recognised startups (self-reported)   |
|-------------------|---------------------------------------------------------------------|
| Jharkhand         | 6,151                                                               |
| Jammu and Kashmir | 3,459                                                               |
| Bihar             | 12,618                                                              |
| Madhya Pradesh    | 29,063                                                              |
| Gujarat           | 64,587                                                              |
| Total             | 1,15,878                                                            |

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 startup ecosystem across the country are placed as Annexure-I .

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## ANNEXURE

## ANNEXURE  REFERRED  TO  IN  REPLY  TO    PART  (c)  OF  THE  LOK  SABHA USTARRED QUESTION NO. 1030 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 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.

-  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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