Lok Sabha Question No. 495 (UNSTARRED), answered on 2023-12-06
Subject: Startups in Punjab
Ministry: COMMERCE AND INDUSTRY
Asked by: Sushil Kumar Rinku

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

## UNSTARRED QUESTION NO. 495. TO BE ANSWERED ON WEDNESDAY, THE 06 th  DECEMBER, 2023.

## STARTUPS IN PUNJAB

## 495.   SHRI SUSHIL KUMAR RINKU:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the features of the Startups India Scheme;
- (b) the details of the funds sanctioned, allocated and utilised for startups with in Punjab during the last three years and the current year;
- (c) whether it is a fact that there has been a slowdown in the growth of startups in the country; and
- (d) 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): The Government with an intent to build a strong ecosystem for nurturing innovation, encouraging  investments  launched  the  Startup  India  initiative  on  16th  January 2016.

The Government unveiled an Action Plan for Startups comprising of 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 'Industryacademia  partnership  and  incubation'.  For  attaining  specific  objectives  of  the Action  Plan,  various  programs  are  implemented  by  the  Government  under  the Startup India initiative to recognize, develop, and empower startup ecosystem.

- (b): The flagship Schemes, namely, Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS) 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.

SISFS has been established to provide financial assistance to seed stage startups through incubators. Specifically for the State of Punjab, Rs. 34.65 crore has been approved and Rs. 15.44 crore has been disbursed to 8 incubators. The incubators approved under the Scheme have shortlisted 15 recognised startups from the State of Punjab for an approved total sum of Rs. 1.10 crore during the last three years viz 2020, 2021, 2022 and the current year i.e., 2023 as on 31 st  October 2023.

FFS has been established to catalyze venture capital investments in Indian startup ecosystem. It is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)registered  Alternative  Investment  Funds  (AIFs)  who  in  turn  invest  in  startups. Specifically for the State of Punjab, AIFs supported under FFS have invested Rs. 12.43 crore in startup during the last three years viz 2020, 2021, 2022 and the current year i.e., 2023 as on 31 st  October 2023.

- (c) & (d): No Sir, there has not been a slowdown in the growth of startups. Sustained efforts by the Government under the Startup India initiative have led to an increase in the number of recognised startups from over 300 in 2016 to 1,14,902 in 2023 as on 31 st  October 2023.

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