Lok Sabha Question No. 3888 (UNSTARRED), answered on 2025-08-12
Subject: Status of the Start-up India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Parshottambhai Rupala

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

## LOK SABHA

UNSTARRED QUESTION NO. 3888. TO BE ANSWERED ON TUESDAY, THE 12 TH  AUGUST, 2025.

## STATUS OF THE START-UP INDIA SCHEME

## 3888.  SHRI PARSHOTTAMBHAI RUPALA:

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

- (a) the progress made under the Start-up India initiative, including the number of start-ups recognized and the benefits availed by them;
- (b) the details of funding opportunities provided to startups, including the Start-up India Seed Fund Scheme and the Fund of Funds for Start-ups;
- (c) the measures taken to promote entrepreneurship among youth, women and marginalized communities, including the Credit Guarantee Scheme and Stand Up India Scheme;
- (d) the number of jobs created and the economic impact of the start-ups supported under the initiative; and
- (e) the  steps  taken  to  address  the  challenges  faced  by  start-ups,  including regulatory and policy issues?

## 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) & (b): Since the launch of the Startup India initiative, number of entities recognized as startups by Department for Promotion of Industry and Internal Trade (DPIIT) has increased from around 500 in 2016 to 1,80,683 as on 30th June 2025.

Under  Startup  India  initiative,  the  Government  is  implementing  flagship Schemes, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) to provide funding opportunities  and support startups at various stages of their business cycle.

FFS  has  been  established  to  catalyze  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 the Scheme have invested Rs. 23,679 crore in 1,282 startups as on 30 th  June 2025.

SISFS provides financial assistance to seed stage startups through incubators. The incubators supported under the Scheme have selected 2,942 startups for a total approved funding of Rs. 522.42 crore as on 30 th  June 2025.

CGSS is implemented for  enabling  collateral  free  loans  to  startups  through eligible  financial  institutions.  CGSS  is  operationalized  by  the  National Credit Guarantee Trustee Company (NCGTC) Limited and has been operationalized from 1st April 2023. As on 30th June 2025, 289 loans amounting to Rs. 667.85 crore have been guaranteed for startup borrowers.

- (c): Government has implemented various measures/schemes across the country to  promote  entrepreneurship  among  the  youth,  women  and  marginalized communities, including measures under Credit Guarantee Scheme for Startups (CGSS) and Stand-up India Scheme. Details of such initiatives are placed as Annexure-I .
- (d): Since  the  launch  of  Startup  India  initiative  in  2016,  entities  recognised  as startups by DPIIT have created over 19.5 lakh direct jobs as on 30 th  June 2025.

As a result of sustained efforts under Startup India initiative, entities recognised as  startups  are  present  in  every  State/Union  Territory  (UT)  of  the  country. Further, of the total entities recognized as startups, more than 45% have at least one-woman director/partner as on 30 th  June 2025.

As per impact assessments of Schemes under Startup India initiative - FFS and SISFS, supported startups have reported improvement in economic areas such as revenue, and employment generation. Further, capacity building of investors has  been  enabled  and  startups  from  a  wide  variety  of  sectors  have  been supported.

- (e): 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, faster-exit provisions, relaxation in public procurement, etc.

********

## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 3888 FOR ANSWER ON 12.08.2025.

## I. Key  measures  to  promote  entrepreneurship  including  for  the  youth  and marginalized communities:

1.  The  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  through  its autonomous  organizations,  namely  National  Institute  for  Entrepreneurship  and Small Business Development (NIESBUD) and Indian Institute of Entrepreneurship (IIE)  has  taken  various  initiatives  to  promote  entrepreneurship  development amongst all sections of the society. These initiatives include Skills Acquisition and Knowledge  Awareness  for  Livelihood  Promotion  (SANKALP)  Scheme,  Project Swavalambini,  Skill  Strengthening  for  Industrial  Value  Enhancement  (STRIVE), Entrepreneurship Awareness Programmes (EAP), Entrepreneurship Development Programmes (EDP), Faculty Development Programmes (FDP), Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyaan (PM-JANMAN), Entrepreneurship Development Centres (EDC) in North East Region's Educational Institutions, and Udyam Disha - Mentor Platform.
2.  Under the Government's Skill India Mission (SIM), MSDE provides skill, re-skill and up-skill  training  through  an  extensive  network  of  skill  development  centres/ institutes etc. under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY),  Jan  Shikshan  Sansthan  (JSS),  National  Apprenticeship  Promotion Scheme  (NAPS)  and  Craftsman  Training  Scheme  (CTS)  through  Industrial Training Institutes (ITIs), across the country.
3.  Under  the  Ministry  of  Rural  Development,  the  Deendayal  Antyodaya  YojanaNational Rural Livelihoods Mission (DAY-NRLM)  through Start-up Village Entrepreneurship Programme (SVEP) supports Self-Help Groups (SHGs) and their family members to set-up small enterprises in the non-farm livelihoods sector.
4.  Under Startup  India  initiative,  the  flagship  funding  schemes,  (FFS,  SISFS,  and CGSS),  States' Startup Ranking Framework exercise, National Startup Awards, events such as Innovation Week and Startup Mahakumbh, digital platforms such as the Startup India portal and BHASKAR, activities to encourage corporates to supporting  startups  by  way  of  mentorship,  access  to  infrastructure,  sharing resources and knowledge, assistance in market linkages and investor connect and district outreach programs are undertaken to encourage grassroots innovation and setting up of startups across the country by entrepreneurs.
5.  The  Ministry  of  Education's  Innovation  Cell  (MIC)  and  All  India  Council  for Technical Education (AICTE) promotes innovation and entrepreneurship across educational institutions.
6.  Youth-centric initiatives have been introduced by the Ministry of Youth Affairs and Sports such as setting up of the autonomous body called Mera Yuva Bharat (MY Bharat), the purpose of it, is to provide an over-arching institutional mechanism powered by technology for youth development and youth-led development through Experiential  Learning  Programs  (ELPs),  volunteering  opportunities,  mentorship programme, etc.
7.  The  Ministry  of  Minority  Affairs  (MoMA)  implements  various  skill  development schemes  namely  'Seekho  Aur  Kamao',  'Upgrading  the  Skills  and  Training  in Traditional Arts/Crafts for Development (USTTAD)', 'Nai Roshni' and 'Nai Manzil' for  socio-economic  development  of  youth  from  minority  communities.  These schemes  and  initiatives  have  now  been  converged  into  an  integrated  Scheme called 'Pradhan Mantri Virasat Ka Samvardhan' (PM VIKAS).
8.  The Stand-up India Scheme was launched with an objective to provide loans from Scheduled Commercial Banks (SCBs) of value between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower  per  bank  branch  for  setting  up  a  greenfield  enterprise  in  the manufacturing, services or trading sector and also for activities allied to agriculture.
- II. Key  measures  to  support  women-led  startups  and  promote  inclusive entrepreneurship:
1.  Women-led applicants are incentivized under the flagship schemes of Fund of Funds for Startups (FFS) and Credit Guarantee Scheme for Startups (CGSS).
2. Capacity  building  programs such  as  the  Women  Capacity  Development Programme (WING), Virtual Incubation Programs, Startup Learning Program for Women  in  Technology,  Accelerating  Women  Entrepreneurs  Program  support women-led startups and women entrepreneurs in their startup journey.
3. Outreach and awareness measures include  a  dedicated webpage on Startup India Hub portal detailing Government measures, Accelerating Startup Calibre & Entrepreneurial  Drive  (ASCEND)  Startup  Workshop  Series  for  north-eastern region, SuperStree Podcast, Women for Startups workshops with States/UTs, and information dissemination through various media platforms to reach women-led startups and entrepreneurs across the country.
4.  Women-led startups and entrepreneurs are also recognised for their progress and achievements through measures and initiatives such as interaction of women entrepreneurs with the Hon'ble President of India, specific provisions in the States' Startup  Ranking  exercise  to  encourage  support  for  women-led  startups  in States/UTs  and  special  category  for  women-led  startups  in  National  Startup Awards (NSA).
5.  Apart  from  the  above-mentioned  measures  and  as  detailed  in  Part  I.  of  the Annexure, other Ministries and Departments have also implemented programmes and initiatives to support women entrepreneurship such as Digital Marketing  and  Entrepreneurship  Development  for  Women  Self  Help  Groups (WSHGs), Adivasi Mahila Sashaktikaran Yojana (AMSY), Women Entrepreneurship Development Programme (WEDP), Science and Technology for Women (STW) programme, Swavalambini -Women Entrepreneurship Programme,  Women  Entrepreneurship  Platform  (WEP),  Skill  Upgradation  and Mahila Coir Yojana, etc.

*******