Lok Sabha Question No. 3652 (UNSTARRED), answered on 2024-12-17
Subject: Benefits from Startup India Initiative
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri P C Mohan

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

## LOK SABHA

UNSTARRED QUESTION NO. 3652.

TO BE ANSWERED ON TUESDAY, THE 17 TH  DECEMBER, 2024.

## BENEFITS FROM STARTUP INDIA INITIATIVE

## 3652.  SHRI P C MOHAN:

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

- (a) the details and the number of startups in Bengaluru district have benefited from the Startup India Initiative in terms of financial support, regulatory relief and tax exemptions since its launch, and what has been the impact on job creation;
- (b) the details of the specific measures are being implemented by the Government to  promote  women's  entrepreneurship  and  support  startups  in  Bengaluru district under the Startup India Scheme;
- (c) whether the funding has been allocated to the Startup India Scheme in the current fiscal year and the details of the scheme's major achievements during the last 12 months; and
- (d) whether any new initiatives or policy changes under consideration to enhance startup support, especially in emerging sectors like health-tech, agri-tech and green technologies and if so, the details thereof ?

## 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 Government with an intent to build a strong ecosystem of the country for nurturing  innovation,  startups  and  encouraging  investments  in  the  startup ecosystem of the country launched the Startup India initiative on 16th January 2016.

As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th  February  2019,  entities  are  recognized  as  'startups'  under  the  Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT). In Bengaluru district (Rural and Urban), DPIIT has recognized 13,649 entities as startups that have reportedly created over 1,63,345 direct jobs as on 31 st  October 2024.

Under  the  Startup  India  initiative,  the  Government  is  implementing  three flagship Schemes, namely, Startup India Seed Fund Scheme (SISFS), Fund of

Funds for Startups (FFS) and Credit Guarantee Scheme for Startups (CGSS) to support startups at various stages of their business cycle.

SISFS provides financial assistance to seed stage startups through incubators. Specifically for Bengaluru district (Rural and Urban), selected incubators have approved a total of Rs. 63.99 crore to 281 startups, as on 31 st  October 2024.

FFS  has  been  established  to  catalyze  venture  capital  investments  and  is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to SEBI-registered Alternative Investment Funds (AIFs) who in turn invest in startups. Specifically for Bengaluru district, selected AIFs have invested Rs. 6,470.8 crore in 346 startups as on 31 st  October 2024.

CGSS is implemented for enabling collateral free loans to the DPIIT recognised startups through eligible financial institutions. CGSS is operationalized by the National Credit Guarantee Trustee Company (NCGTC) Limited and has been operationalized on pilot basis from 1st April 2023. Specifically for  Bengaluru (Urban) district, a total of 24 loans amounting to Rs. 49.24 crore have been guaranteed to eligible recognised startups, as on 31 st  October 2024.

Since the launch of the Startup India initiative in 2016, the Government has taken various measures to enhance ease of doing business, raising capital, and reducing compliance burden to simplify the regulatory environment and create a conducive business environment. These also include tax exemptions under Section 80-IAC and Section 56(2)(viib) of the Income Tax Act 1961. As on 31 st October 2024, in Bengaluru district (Rural and Urban), a total of 348 and 1,601 startups have been issued Certificate of Eligibility under Section 80-IAC and exemption under Section 56(2)(viib) of the Income Tax Act 1961, respectively.

- (b): Startup India is an initiative and not  a  scheme.  The  Government  is implementing specific initiatives/programmes under the Startup India initiative to promote women entrepreneurship across the country including Bengaluru. The details of such initiatives are placed as Annexure-I.
- (c) & (d): Under  the  Startup  India  initiative,  the  Government  constantly  undertakes various efforts for the development and growth of startup ecosystem across sectors.  The  flagship  Schemes  namely,  Fund  of  Funds  for  Startups  (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) support startups at various stages of their business cycle. The Government  also  implements  periodic  exercises  and  programs  including States' Startup Ranking, National Startup Awards, and Innovation Week which play  an  important  role  in  the  holistic  development  of  the  startup  ecosystem. Initiatives  to  improve  market access and enable public procurement support startups in growing and scaling up their businesses. Digital platforms such as the  Startup  India  portal  and  Bharat  Startup  Knowledge  Access  Registry (BHASKAR)  enable  easy  access  to resources and startup  ecosystem

collaboration. These measures are complemented by regulatory reforms and other ecosystem development events and programs.

All  the  steps  undertaken  by  the  Government  under  the  said  initiative  are inclusive  and  are  implemented  across  States/Union  Territories  (UTs)  and across sectors.

Sustained efforts by the Government under the Startup India initiative have led to an increase in the number of DPIIT recognised startups to 1,52,139 as on 31 st  October 2024 across multiple sectors. Of these, more than 34,800 entities were recognized as startups in the last year i.e. 2023. Specifically for emerging sectors  like  health  technology,  agri-tech  and  green  technologies,  DPIIT  has recognized more than 13,000 entities as startups as on 31 st  October 2024.

## *********

## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  THE  LOK  SABHA UNSTARRED QUESTION 3652 FOR ANSWER ON 17.12.2024.

## Programs  implemented  to  promote  women  entrepreneurship  across  the country, including Bengaluru are as under:

1.  To promote flow of both equity and debt to women led startups, 10% of the fund in the Fund of Funds for Startups Scheme operated by Small Industries Development Bank of India (SIDBI) is reserved for women-led startups.
2.  Alternative Investment Funds (AIFs) led by women are eligible to be considered for a higher level of management fee (0.1% per annum). The same benefit is also extended to AIFs which are focused on women led startups.
3.  Under Credit Guarantee Scheme for Startups (CGSS), for availing the guarantee cover, the Member Institution pays Annual Guarantee Fee (AGF) of 2% p.a. of the disbursement/outstanding amount. For units from the North East region as well as those of women entrepreneurs, the Member Institution pays a standard rate of 1.5% p.a. of the disbursement/outstanding amount.
4.  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 serve as a platform for emerging women entrepreneurs and other stakeholders to discuss the key challenges facing women entrepreneurs. WING workshops create 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.
5.  A Virtual Incubation Program for Women Entrepreneurs was conducted to support women-led tech startups with pro-bono acceleration support.
6.  Startup  India  Hub:  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.
7.  ASCEND  Startup  Workshop  Series  and  Women  for  Startups  Workshops:  The Government organized a series of  startup workshops  -  ASCEND  (Accelerating Startup Calibre & Entrepreneurial Drive), for the entrepreneurs, aspiring entrepreneurs, and students from North-eastern region. In addition, the workshops are conducted with a specific focus on women entrepreneurs across the northeastern  states.  The  workshops  have  witnessed  participation  from  ecosystem stakeholders  such  as  government  officials,  startups,  aspiring  entrepreneurs, investors, academic institutions, etc.
8.  SuperStree Podcast: With a vision to inspire a greater number of women across all regions in India to become entrepreneurs, the SuperStree video podcast series has  been  launched  on  women  in  the  Indian  Startup  Ecosystem.  The  podcast spreads awareness related to innovations from women and to further strengthen women entrepreneurship in the country.
9.  Through  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.
10.  Women  For  Startups:  State  Workshops  for  Women  Entrepreneurs  were  held across States to build the capacity of aspiring and existing women entrepreneurs. The workshops focused on government scheme awareness, mock pitching, and finance-related training.
11.  President's Interaction with Women Entrepreneurs: On 18th January 2024, as part of the 'The President with the People' initiative, 25 women entrepreneurs had the opportunity  to  interact  with  the  Hon'ble  President  of  India.  The  interaction highlighted the role of women-led startups in driving innovation, creating jobs, and contributing to India's growing startup ecosystem. The  Hon'ble President acknowledged  their  efforts  in  turning  ideas  into  ventures  and  emphasized  the importance of their success in inspiring future generations.
12.  The  States'  Startup  Ranking  on  support  to  startup  ecosystems  is  primarily  an exercise  to  identify  good  practices  across  all  the  Indian  states.  The  evaluation includes  a  specific  provision  to  gauge  the  formulation  and  implementation  of policies and special incentives to promote women-led startups in each state. The particular action point has witnessed active engagement and thereon reporting of measures undertaken by participating States and UTs.
13.  To identify the depth, quality and spread of innovation, inclusivity and diversity, and entrepreneurship  in  country,  the  Government  instituted  the  National  Startup Awards  (NSA).  NSA  recognizes  and  promotes  startups  across  20  sectors  and special categories. All four editions of the NSA (2020, 2021, 2022 and 2023) have featured a special category and award for women-led startups.