Lok Sabha Question No. 244 (STARRED), answered on 2022-08-03
Subject: Startup India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Ajay Nishad

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

## LOK SABHA

STARRED QUESTION NO. 244. TO BE ANSWERED ON WEDNESDAY, THE 3 RD  AUGUST, 2022.

## STARTUP INDIA SCHEME

## *244.  SHRI AJAY NISHAD:

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

- (a) the details of main features of the Startup India Scheme;
- (b) the number of registrations made across the country under the scheme from the date of its commencement, State/UT-wise;
- (c) the details of the amount sanctioned, allocated and utilized under the scheme along with the targets set/ achieved, State/UT-wise;
- (d) the names of the five States which have initiated/ made maximum registrations of start-ups in the country; and
- (e) the number of registrations made in Bihar under the scheme during the last two years?

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

(a) to (e):

A Statement is laid on the Table of the House

********

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  THE  LOK SABHA STARRED QUESTION No. 244 FOR ANSWER ON 03 RD  AUGUST, 2022.

- (a): The Government with an intent to build a strong eco-system for nurturing innovation  and  startups  in  the  country  launched  the  Startup  India initiative on 16th January 2016.

In order to meet the objectives of the initiative, the Government unveiled an Action Plan for Startup India that laid the foundation for Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country. 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'.

Sustained Government  efforts in this direction have resulted in increasing  the  number  of  recognized  Startups  from  471  in  2016  to 72,993 in 2022 (as on 30th June 2022).

There is at least one recognised startup from every State and UT and nearly  50%  of  the  recognised  startups  are  from  Tier-II  and  III  cities. Recognised  startups  are  spread  across  over  649  districts  and  have reported creation of more than 7.5 lakh direct jobs.

Details  of  various  programs  undertaken  under  Startup  India  initiative since inception are placed at Annexure-I .

- (b): Under Startup India Initiative, entities are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as startups as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019. As on 30th June 2022, 72,993 entities have been recognised as startups from across the country by the DPIIT. The State/ UT wise number of startups recognition by the DPIIT from the date of commencement of the Startup India initiative is placed at Annexure-II .
- (c): Under  Startup  India  Initiative,  to  provide  capital  at  various  stages  of business cycle of a startup, the Government is implementing Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS). Both the Schemes are implemented on a Pan-India basis.

The Fund of Funds for Startups Scheme was approved and established in June 2016 with a corpus of Rs 10,000 crore, with contribution spread over the 14th and 15th Finance Commission cycle based on progress of implementation,  to  provide  much-needed  boost  to  the  Indian  startup ecosystem and enable access to domestic capital.

Under  FFS,  the  Scheme  does  not  directly  invest  in  startups,  instead provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments. Small Industries Development  Bank  of  India  (SIDBI)  has  been  given  the  mandate  of operating  this  Fund  through  selection  of  suitable  daughter  funds  and overseeing  the  disbursal  of  committed  capital.  AIFs  supported  under

FFS are required to invest at least 2x of the amount committed under FFS in startups.

As on 30th June 2022, in the FFS, of the corpus of Rs. 10,000 crore, Rs. 7,260 crore has been approved (committed) to the AIFs of which Rs. 2,804 utilised (drawdowns to the AIFs). The State/ UT wise details are placed at Annexure-III .

The Startup India Seed Fund Scheme has been approved for the period of 4 years starting from 2021-22. The Scheme aims to provide financial assistance  to  startups  for  proof  of  concept,  prototype  development, product trials, market entry and commercialization. It is being implemented with effect from 1st April 2021. It is envisaged that a corpus of Rs. 945 Crore will be disbursed over the next 4 years and will support an estimated 3,600 entrepreneurs through 300 incubators.

Under SISFS, as per provisions of the Scheme, the Government has constituted an Experts Advisory Committee (EAC) which is responsible for  the  overall  execution  and  monitoring  of  the  SISFS.  The  EAC evaluates  and  selects  incubators  for  allocation  of  funds  under  the Scheme. The selected incubators thereon shortlist the startups based on certain parameters outlined in Scheme guidelines.

As on 30th June 2022, in the SISFS, of the corpus of Rs. 945 crore, Rs. 360.75 crore has been approved to the selected incubators of which Rs. 140.17 crore has been disbursed. The State/ UT wise details are placed at Annexure-IV .

- (d): Under Startup India Initiative, entities are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as startups as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019. As on 30th June 2022, Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat are the top five States/UTs in terms of number of recognised startups.
- (e): From  the  State  of  Bihar,  a  total  of  648  entities  were  recognised  as startups in the last two years viz. 2020 and 2021 by the DPIIT as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February, 2019 (258 entities were recognised as startups in the year  2020  and  390  entities  were  recognised  as  startups  in  the  year 2021).

*****

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA STARRED QUESTION No. 244 FOR ANSWER ON 03 RD  AUGUST, 2022.

## Programs Launched 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. Regulatory  Reforms :  52  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. 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.
5. 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.
6. 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.
7. International  Market  Access  to  Indian  Startups :  One  of  the  key  objectives under the Startup India initiative is to help connect Indian startup ecosystem to
8. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.

*****

## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA STARRED QUESTION No. 244 FOR ANSWER ON 03 RD  AUGUST, 2022.

The State/ UT wise number of startups recognition by the DPIIT from the date of commencement of the Startup India initiative as on 30 th  June 2022 is as under:

| State/ UTs                               | 2016   | 2017   | 2018   | 2019   | 2020   | 2021    | 2022    | Grand Total   |
|------------------------------------------|--------|--------|--------|--------|--------|---------|---------|---------------|
| Andaman and Nicobar Islands              | -      | 1      | 2      | 8      | 5      | 13      | 5       | 34            |
| Andhra Pradesh                           | 4      | 100    | 160    | 176    | 232    | 297     | 164     | 1,133         |
| Arunachal Pradesh                        | -      | -      | 2      | 2      | -      | 4       | 2       | 10            |
| Assam                                    | 10     | 34     | 68     | 67     | 119    | 188     | 116     | 602           |
| Bihar                                    | 1      | 47     | 145    | 154    | 258    | 390     | 242     | 1,237         |
| Chandigarh                               | 9      | 22     | 26     | 40     | 54     | 69      | 37      | 257           |
| Chhattisgarh                             | 11     | 56     | 119    | 160    | 154    | 166     | 118     | 784           |
| Dadra and Nagar Haveli and Daman and Diu | -      | 4      | 1      | 3      | 5      | 12      | 7       | 32            |
| Delhi                                    | 66     | 727    | 1,158  | 1,378  | 1,771  | 2,191   | 1,345   | 8,636         |
| Goa                                      | 2      | 19     | 43     | 41     | 67     | 81      | 53      | 306           |
| Gujarat                                  | 24     | 285    | 442    | 600    | 879    | 1,717   | 973     | 4,920         |
| Haryana                                  | 27     | 255    | 478    | 702    | 809    | 1,063   | 651     | 3,985         |
| Himachal Pradesh                         | -      | 9      | 16     | 29     | 41     | 56      | 53      | 204           |
| Jammu and Kashmir                        | 2      | 14     | 43     | 38     | 64     | 132     | 82      | 375           |
| Jharkhand                                | 2      | 35     | 85     | 88     | 164    | 191     | 110     | 675           |
| Karnataka                                | 61     | 842    | 1,184  | 1,675  | 1,739  | 2,144   | 1,236   | 8,881         |
| Kerala                                   | 25     | 163    | 326    | 653    | 702    | 921     | 487     | 3,277         |
| Ladakh                                   | -      | -      | -      | -      | 1      | -       | 2       | 3             |
| Lakshadweep                              | -      | -      | -      | -      | 1      | -       | -       | 1             |
| Madhya Pradesh                           | 7      | 102    | 289    | 329    | 425    | 558     | 409     | 2,119         |
| Maharashtra                              | 86     | 1,058  | 1,620  | 2,129  | 2,685  | 3,721   | 2,220   | 13,519        |
| Manipur                                  | -      | 4      | 7      | 6      | 12     | 37      | 13      | 79            |
| Meghalaya                                | -      | -      | 2      | 5      | -      | 9       | 7       | 23            |
| Mizoram                                  | -      | -      | 2      | 1      | 1      | 2       | 1       | 7             |
| Nagaland                                 | 1      | 4      | 2      | 2      | 5      | 7       | 3       | 24            |
| Odisha                                   | 4      | 108    | 166    | 184    | 277    | 392     | 198     | 1,329         |
| Puducherry                               | -      | 3      | 15     | 10     | 13     | 17      | 14      | 72            |
| Punjab                                   | 7      | 28     | 65     | 93     | 146    | 241     | 136     | 716           |
| Rajasthan                                | 14     | 137    | 241    | 349    | 496    | 620     | 442     | 2,299         |
| Sikkim                                   | -      | 1      | -      | 2      | 1      | 3       | 1       | 8             |
| Tamil Nadu                               | 49     | 257    | 449    | 609    | 756    | 1,103   | 730     | 3,953         |
| Telangana                                | 20     | 312    | 501    | 596    | 802    | 987     | 657     | 3,875         |
| Tripura                                  | -      | -      | 2      | 7      | 23     | 12      | 18      | 62            |
| Uttar Pradesh                            | 27     | 392    | 776    | 881    | 1,377  | 1,968   | 1,233   | 6,654         |
| Uttarakhand                              | 4      | 43     | 69     | 97     | 114    | 162 686 | 112 464 | 601           |
| West Bengal                              | 8      | 171    | 271    | 303    | 398    |         |         | 2,301         |
| Grand Total                              | 471    | 5,233  | 8,775  | 11,417 | 14,596 | 20,160  | 12,341  | 72,993        |

******* ANNEXURE-III

ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA STARRED QUESTION No. 244 FOR ANSWER ON 03 RD  AUGUST, 2022.

The details of the amount allocated and utilized under the Fund of Funds for Startups , State/UT-wise as on 30 th  June 2022 are as under:

| Name of State/ UT   | Total Amount Allocated in Rs. Crore (Committed to the Alternative Investment Funds)   | Total Amount Utilised in Rs. Crore (Drawdowns made by the Alternative Investment Funds and Disbursed by SIDBI)   |
|---------------------|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
| Assam               | 25                                                                                    | 13                                                                                                               |
| Delhi               | 751                                                                                   | 459                                                                                                              |
| Gujarat             | 100                                                                                   | 47                                                                                                               |
| Haryana             | 111                                                                                   | 26                                                                                                               |
| Karnataka           | 1,701                                                                                 | 666                                                                                                              |
| Maharashtra         | 4,007                                                                                 | 1,271                                                                                                            |
| Tamil Nadu          | 435                                                                                   | 246                                                                                                              |
| Telangana           | 130                                                                                   | 76                                                                                                               |
| Total               | 7,260                                                                                 | 2,804                                                                                                            |

*******

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA STARRED QUESTION No. 244 FOR ANSWER ON 03 RD  AUGUST, 2022.

The details of the amount allocated and utilized under the Startup India Seed Fund Scheme , State/UT-wise as on 30 th  June 2022 are as under:

| Name of State/ UT   |   Total Amount Allocated in Rs. crore (approved to the selected incubators) | Total Amount Utilised in Rs. crore (disbursed to the selected incubators)   |
|---------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Andhra Pradesh      |                                                                        4    | 0.84                                                                        |
| Bihar               |                                                                        3    | 1.26                                                                        |
| Delhi               |                                                                       12    | 4.20                                                                        |
| Goa                 |                                                                       11.8  | 4.956                                                                       |
| Gujarat             |                                                                       35    | 10.50                                                                       |
| Haryana             |                                                                        5    | -                                                                           |
| Himachal Pradesh    |                                                                        5    | 2.10                                                                        |
| Karnataka           |                                                                       39.5  | 17.535                                                                      |
| Kerala              |                                                                       18    | 9.135                                                                       |
| Madhya Pradesh      |                                                                        7    | 2.94                                                                        |
| Maharashtra         |                                                                       40    | 13.02                                                                       |
| Odisha              |                                                                       17    | 5.88                                                                        |
| Puducherry          |                                                                        8    | 1.26                                                                        |
| Punjab              |                                                                       10    | 4.20                                                                        |
| Rajasthan           |                                                                       31.5  | 11.97                                                                       |
| Sikkim              |                                                                        3    | 1.26                                                                        |
| Tamil Nadu          |                                                                       34    | 12.285                                                                      |
| Telangana           |                                                                       34.95 | 18.459                                                                      |
| Uttar Pradesh       |                                                                       27    | 12.075                                                                      |
| Uttarakhand         |                                                                       10    | 4.20                                                                        |
| West Bengal         |                                                                        5    | 2.10                                                                        |
| Total               |                                                                      360.75 | 140.175                                                                     |

*******