Lok Sabha Question No. 565 (UNSTARRED), answered on 2022-07-20
Subject: Startups in Gujarat
Ministry: COMMERCE AND INDUSTRY
Asked by: C. R. Patil

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

UNSTARRED QUESTION NO. 565. TO BE ANSWERED ON WEDNESDAY, THE 20 TH  JULY, 2022.

## STARTUPS IN GUJARAT

## 565. SHRI C.R. PATIL:

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

- (a) the  year-wise  details  of  Startups  incorporated  in  the  country  in  the  last  five years, State/UT-wise;
- (b) the  details  of  the  programmes  launched  by  the  Government  to  promote Startups across the country, State/UT-wise including Gujarat; and
- (c) the  details  of  schemes  implemented  in  Gujarat  by  the  Government  in  this regard?

## 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): Under  Startup  India  Initiative,  entities  are  being  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. The year-wise, state-wise detail of startups  recognized  by  the  DPIIT  in  the  last  five  years  is  placed  at Annexure-I.
- (b) & (c): The measures taken by the Government to promote startups across the country, including Gujarat are placed at Annexure-II. All the initiatives under  the  Startup  India  are  inclusive  and  are  implemented  across States, cities, towns and rural areas.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 565 FOR ANSWER ON 20.07.2022.

The year-wise, state-wise detail of startups recognized by the DPIIT in the last five years is as under :

| State/ UTs                               | 2017   | 2018   | 2019   | 2020   | 2021   |
|------------------------------------------|--------|--------|--------|--------|--------|
| Andaman and Nicobar Islands              | 1      | 2      | 8      | 5      | 13     |
| Andhra Pradesh                           | 100    | 160    | 176    | 232    | 297    |
| Arunachal Pradesh                        | -      | 2      | 2      | -      | 4      |
| Assam                                    | 34     | 68     | 67     | 119    | 188    |
| Bihar                                    | 47     | 45     | 154    | 258    | 390    |
| Chandigarh                               | 22     | 26     | 40     | 54     | 69     |
| Chhattisgarh                             | 56     | 19     | 160    | 154    | 166    |
| Dadra and Nagar Haveli and Daman and Diu | 4      | 1      | 3      | 5      | 12     |
| Delhi                                    | 727    | 1,158  | 1,378  | 1,771  | 2,191  |
| Goa                                      | 19     | 43     | 41     | 67     | 81     |
| Gujarat                                  | 285    | 442    | 600    | 879    | 1,717  |
| Haryana                                  | 255    | 478    | 702    | 809    | 1,063  |
| Himachal Pradesh                         | 9      | 16     | 29     | 41     | 56     |
| Jammu and Kashmir                        | 14     | 43     | 38     | 64     | 132    |
| Jharkhand                                | 35     | 85     | 88     | 164    | 191    |
| Karnataka                                | 842    | 1,184  | 1,675  | 1,739  | 2,144  |
| Kerala                                   | 163    | 326    | 653    | 702    | 921    |
| Ladakh                                   | -      | -      | -      | 1      | -      |
| Lakshadweep                              | -      | -      | -      | 1      | -      |
| Madhya Pradesh                           | 102    | 289    | 329    | 425    | 558    |
| Maharashtra                              | 1,058  | 1,620  | 2,129  | 2,685  | 3,721  |
| Manipur                                  | 4      | 7      | 6      | 12     | 37     |
| Meghalaya                                | -      | 2      | 5      | -      | 9      |
| Mizoram                                  | -      | 2      | 1      | 1      | 2      |
| Nagaland                                 | 4      | 2      | 2      | 5      | 7      |
| Odisha                                   | 108    | 166    | 184    | 277    | 392    |
| Puducherry                               | 3      | 15     | 10     | 13     | 17     |
| Punjab                                   | 28     | 65     | 93     | 146    | 241    |
| Rajasthan                                | 137    | 241    | 349    | 496    | 620    |
| Sikkim                                   | 1      | -      | 2      | 1      | 3      |
| Tamil Nadu                               | 257    | 449    | 609    | 756    | 1,103  |
| Telangana                                | 312    | 501    | 596    | 802    | 987    |
| Tripura                                  | -      | 2      | 7      | 23     | 12     |
| Uttar Pradesh                            | 392    | 776    | 881    | 1,377  | 1,968  |
| Uttarakhand                              | 43     | 69     | 97     | 114    | 162    |
| West Bengal                              | 171    | 271    | 303    | 398    | 686    |
| Grand Total                              | 5,233  | 8,775  | 11,417 | 14,596 | 20,160 |

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## ANNEXURE REFERRED TO IN REPLY TO PART (b) & (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 565 FOR ANSWER ON 20.07.2022.

## 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 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
14. 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.

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