Lok Sabha Question No. 4826 (UNSTARRED), answered on 2023-03-29
Subject: Startup India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Shiromani Ram

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4826. TO BE ANSWERED ON WEDNESDAY, THE 29 TH  MARCH, 2023.

## STARTUP INDIA SCHEME

## 4826.  SHRI RAMSHIROMANI VERMA:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the salient features of Startup India Scheme;
- (b) the  details  of  funds  sanctioned,  allocated  and  utilized  under  the  abovementioned scheme in Uttar Pradesh;
- (c) the details of targets set and the achievements made under the scheme in Uttar Pradesh;
- (d) whether the Government has organized any workshop in Uttar Pradesh under this scheme to promote women entrepreneurs; and
- (e) if so, the details thereof, district-wise?

## 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,  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.

In order to meet the objectives of the initiative, the Government unveiled an Action Plan for Startup India that laid the foundation of 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 recognised startups in India from 442 in 2016 to 92,683 in 2023 (as on 28th February 2023).

- (b) & (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 14 th 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.  The  Scheme  is  operationalized  by  Small  Industries Development Bank of India (SIDBI).

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.  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  2  times  of  the  amount  committed  under  FFS  in startups.

As on 28 th  February 2023, Rs. 8,590 crore has been committed to 107 AIFs by SIDBI  under  FFS.  Specifically  for  the  State  of  Uttar  Pradesh,  the  AIFs supported under FFS has invested more than Rs. 300 crore in over 20 startups.

The Startup India Seed Fund Scheme has been approved for the period of 4 years starting from 2021-22 with a corpus of Rs. 945 crore. The Scheme aims to  provide  financial  assistance  to  startups  for  proof  of  concept,  prototype development, product trials, market entry and commercialization. The Scheme is implemented from 1 st  April 2021.

The Experts Advisory Committee (EAC), under SISFS , is responsible for the overall execution and monitoring of  SISFS. The EAC evaluates and selects incubators for allocation of funds under the Scheme. As per provisions of the Scheme,  the  selected  incubators  shortlist   startups  based  on  parameters outlined in Scheme guidelines.

As  on  28 th   February  2023,  Rs.  537.25  crore  has  been  approved  to  148 incubators by the EAC under SISFS. Specifically for the State of Uttar Pradesh, Rs. 30 crore has been approved by the EAC to 8 incubators and Rs. 16.70 crore has been utilised (disbursed) to the approved incubators. The incubators approved under the Scheme have shortlisted 56 recognised startups from the State of Uttar Pradesh for an approved sum of Rs. 8.88 crore.

- (d) & (e) : Startup India initiative launched on 16th January 2016 has the mandate to build a  stronger  ecosystem  for  nurturing  India's  startup  culture  that  would  further drive our economic growth, support entrepreneurship, and enable large-scale employment  opportunities.  It,  inter  alia,  assists  in  strengthening  women entrepreneurship,  through  policies  and  initiatives,  and  creation  of  enabling networks. Details of various program under Startup India initiative, which are gender  neutral  and    implemented    on    pan-India    basis,    are  placed  at Annexure-I .

In  addition  to  the  above,  specifically  for  the  State  of  Uttar  Pradesh,  the Government has organised various workshops for promotion and awareness of Startup India initiative and the programs implemented therein in various districts of  the  Uttar  Pradesh  such  as  Gautam  Buddh  Nagar,  Lucknow,  Kanpur, Varanasi, etc.

Sustained  Government  efforts  in  promoting  the  culture  of  entrepreneurship across the country under Startup India initiative have resulted in increasing the number of recognised startups from 442 in 2016 to 92,683 in 2023 (as on 28 th February 2023). Out of these, nearly 47% of them have at least one-woman director.

Specifically for the State of Uttar Pradesh, out of the 8,579 DPIIT recognised startups, 4,240 (49.4%) DPIIT recognised startups have at least one-woman director. The district-wise distribution of DPIIT recognised startups having at least one-woman director as on 28 th  February 2023 is placed at Annexure-II .

Further, Government has also taken following measures to promote women entrepreneurship across the country:

- i. To promote flow of both equity and debt to women led startups, 10% of the fund (Rs 1000 crore) in the Fund of Funds for Startups Scheme operated by SIDBI is reserved for women led startups.
- 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 includes various policy measures for women entrepreneurs by both Central and State Governments.
- v. Through its various awareness programmes  and  capacity building programmes organized by the Government, and through print media and social media platforms, the Government also creates awareness about the existing schemes which support micro, small and medium entrepreneurs, including women entrepreneurs.

Furthermore, assisted by the States' Startup Rankings on Support to Startup Ecosystems, which is primarily an exercise to identify good practices including support to women entrepreneurs, learning from each other and helping each other  in  formulating  and  implementing  policies  in  true  spirit  of  cooperative federalism,  31  States  and  UTs  have  reportedly  notified  policies  to  support startups. To identify the depth, quality and spread of innovation, inclusivity and diversity, and  entrepreneurship  in  country,  the  Government  instituted  the  National Startup Awards ('NSA'). The winners of NSA have emerged from Bengaluru, Delhi, Hyderabad Chennai, Mumbai Mysuru, Bhopal, Ernakulam, Gurugram, Kochi,  Lucknow,  Margao,  Sonipat,  Tiruvanantpuram  etc. All  three  editions (2020, 2021 and 2022) of NSA had a special award category for Women-led

Startups.

The  Government  has  also  launched  the  Women  Entrepreneurship  Platform (WEP) in 2018 as an aggregator platform with the aim to overcome information asymmetry  in  the  women  entrepreneurial  ecosystem.  By  showcasing  all existing initiatives and providing domain knowledge it works towards empowering both prospective and present women entrepreneurs.

*******

## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS  (d) & (e)  OF  THE  LOK SABHA UNSTARRED QUESTION NO. 4826 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  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.

- 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 Inter-Ministerial 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.

***

## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PARTS  (d) & (e)  OF  THE  LOK SABHA UNSTARRED QUESTION NO. 4826 FOR ANSWER ON 29.03.2023

## The district-wise distribution of DPIIT recognised startups having at least one woman director as on 28 th  February 2023:

| Districts of Uttar Pradesh   |   Number of Recognised Startups |
|------------------------------|---------------------------------|
| Agra                         |                             139 |
| Aligarh                      |                              30 |
| Allahabad                    |                              82 |
| Ambedkar Nagar               |                               3 |
| Amethi                       |                               4 |
| Amroha                       |                               2 |
| Auraiya                      |                              38 |
| Azamgarh                     |                               9 |
| Baghpat                      |                               6 |
| Bahraich                     |                               4 |
| Ballia                       |                               9 |
| Banda                        |                               6 |
| Barabanki                    |                               8 |
| Bareilly                     |                              64 |
| Basti                        |                              10 |
| Bhadohi                      |                               4 |
| Bijnor                       |                              12 |
| Budaun                       |                               6 |
| Bulandshahr                  |                              21 |
| Chandauli                    |                              11 |
| Chitrakoot                   |                               5 |
| Deoria                       |                              16 |
| Etah                         |                               3 |
| Etawah                       |                              11 |
| Faizabad                     |                              16 |
| Farrukhabad                  |                               3 |
| Fatehpur                     |                               6 |
| Firozabad                    |                               9 |
| Gautam Buddha Nagar          |                            1433 |
| Ghaziabad                    |                             680 |
| Ghazipur                     |                              14 |
| Gonda                        |                               4 |
| Gorakhpur                    |                              66 |
| Hamirpur (UP)                |                               4 |
| Hapur                        |                               8 |

| Districts of Uttar Pradesh   | Number of Recognised Startups   |
|------------------------------|---------------------------------|
| Hardoi                       | 8                               |
| Hathras                      | 10                              |
| Jalaun                       | 4                               |
| Jaunpur                      | 8                               |
| Jhansi                       | 42                              |
| Kannauj                      | 8                               |
| Kanpur Dehat                 | 10                              |
| Kanpur Nagar                 | 183                             |
| Kasganj                      | 1                               |
| Kaushambi                    | 5                               |
| Kheri                        | 3                               |
| Kushinagar                   | 3                               |
| Lalitpur                     | 6                               |
| Lucknow                      | 704                             |
| Maharajganj                  | 6                               |
| Mahoba                       | 2                               |
| Mainpuri                     | 1                               |
| Mathura                      | 39                              |
| Mau                          | 2                               |
| Meerut                       | 111                             |
| Mirzapur                     | 14                              |
| Moradabad                    | 43                              |
| Muzaffarnagar                | 21                              |
| Pilibhit                     | 1                               |
| Pratapgarh                   | 10                              |
| Raebareli                    | 6                               |
| Rampur                       | 11                              |
| Saharanpur                   | 39                              |
| Sambhal                      | 3                               |
| Sant Kabir Nagar             | 1                               |
| Shahjahanpur                 | 9                               |
| Shamli                       | 3                               |
| Siddharth Nagar              | 1                               |
| Sitapur                      | 4                               |
| Sonbhadra                    | 10                              |
| Sultanpur                    | 9                               |
| Unnao                        | 10                              |
| Varanasi                     | 143                             |
| Grand Total                  | 4,240                           |

****