Lok Sabha Question No. 4149 (UNSTARRED), answered on 2025-08-19
Subject: Promoting Private Investment in Startups
Ministry: COMMERCE AND INDUSTRY
Asked by: Smt. Manju Sharma

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

## LOK SABHA

UNSTARRED QUESTION NO. 4149.

TO BE ANSWERED ON TUESDAY, THE 19 TH  AUGUST, 2025.

## PROMOTING PRIVATE INVESTMENT IN STARTUPS

## 4149.  SMT. MANJU SHARMA:

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

- (a) the details of the steps taken/being taken by the Government to promote private investment under Start-up India initiatives;
- (b) the  details  of  the  amount  sanctioned  under  the  Start  up  India  Lead  Fund scheme;
- (c) the regulatory reforms undertaken by the Government to enhance ease of doing business, raising capital and to reduce compliance burden for recognised Startups; and
- (d) the number of recognised start-ups included in GeM Start up Runway in a year?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): The Fund of Funds for Startups (FFS) Scheme under Startup India initiative, has been established to catalyze private venture  capital  investments  and  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)  which  in  turn  invest  in  startups.  AIFs supported under FFS are required to invest at least two times of the amount committed under FFS in startups. Under the Scheme, SIDBI has made net commitments of Rs. 9,994 crore to over 140 AIFs and the supported AIFs have invested around Rs. 23,679 crore in 1,282 startups as on 30th June 2025.
- (b): The Government is implementing Startup India Seed Fund Scheme (SISFS) to provide funding opportunities to startups in their early-stages of growth.

The  Scheme  provides  financial assistance to eligible startups through incubators. The Experts Advisory Committee (EAC) of SISFS, evaluates and selects incubators  for  allocation  of  funds  which  thereon  select  startups  in accordance with the Scheme guidelines. Rs. 945 crore has been approved to 219 incubators selected under the Scheme as on 30th June 2025.

- (c): For  simplifying  and  streamlining  business  regulations  and  fostering  ease  of doing  business  across  the  country,  the  Government  is  undertaking  various measures  through  initiatives  such  as  Business  Reform  Action  Plan,  Jan Vishwas,  and  Reducing  Compliance  Burden  on  Businesses  and  Citizens. These measures include simplification of procedures related to applications, renewals, inspections, filing records, etc.; rationalization by repealing, amending  or  subsuming  redundant  laws,  digitization  by  creating  online interfaces eliminating manual forms and records, and decriminalization of minor technical or procedural defaults.

Specifically for the startup ecosystem, the Government has taken more than 60 measures  to  enhance  ease  of  doing  business,  raising  capital  and  reducing compliance  burden.  These  measures  include  profit  linked  deductions  under Section  80-IAC  of  the  Income  Tax  Act  1961,  relaxation  in  compliances, carryforward of losses, fast-track approval process for in-bound mergers, fasterexit provisions, relaxation in public procurement, etc.

- (d): Government  e-Marketplace  (GeM)  has  developed  GeM  Startup  Runway,  a dedicated marketplace category exclusively for startups to list their products and services and sell directly to the Government. 205 recognised startups are included under GeM Startup Runway as on 30 th  June 2025.

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