Lok Sabha Question No. 4048 (UNSTARRED), answered on 2026-03-17
Subject: Implementation of Startup Initiative India
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Rajkumar Roat

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

## LOK SABHA

UNSTARRED QUESTION NO. 4048.

TO BE ANSWERED ON TUESDAY, THE 17 TH  MARCH, 2026.

## IMPLEMENTATION OF STARTUP INITIATIVE INDIA

## 4048.  SHRI RAJKUMAR ROAT:

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

- (a) the  number  of  startups  that  have  applied  under  the  Startup  India  initiative, through NITI  Aayog and the Department of Science and Technology (DST) during the last five years;
- (b) the number of startups have received financial assistance thereunder and the extent  of  variation,  if  any,  between  the  funds  displayed  on  the  websites  of incubators and the actual funds available with them;
- (c) whether many startups, despite being eligible, are not provided an opportunity to  present  their  ideas  and  that  their  applications  are  rejected  without  being heard, if so, the details thereof;
- (d) whether no clear reasons are communicated for such rejection and no effective appellate mechanism is available, if so, the details thereof;
- (e) whether in the absence of a recognized incubation centre in the BanswaraDungarpur region, the youth are being deprived of the benefits of Government schemes, if so, the details thereof; and
- (f) whether  the  Government  proposed  to  ensure  that  every  eligible  startup  is provided at lest one fair pitching opportunity, to mandate public disclosure of funds availability by incubators to establish a transparent appellate mechanism, and  to  setup  an  authorized  incubation  centre  in  the  Banswara-Dungarpur region, if so, the timeline therefor and if not, the reasons therefor?

## 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): Startup India initiative was launched on 16th January 2016, with an intent to build a strong ecosystem for nurturing innovation, startups and encouraging investments in the startup ecosystem of the country. In the last five years viz. 2021, 2022, 2023, 2024 and 2025, 1,65,443 entities have been recognized as startups by the Government.

Under  the  Startup  India  initiative,  the  Government  is  implementing  three 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 across sectors at various stages of their business cycle.

Under  FFS,  supported  AIFs  have  invested  around  Rs.  20,837  crore  in  995 startups, in the last five years viz. 2021, 2022, 2023, 2024 and 2025. Under SISFS, supported incubators have approved around Rs. 591 crore to 3,268 startups in the last five years viz. 2021, 2022, 2023, 2024 and 2025. CGSS has been operationalized from 1st April 2023. In the last three years, viz. 2023, 2024 and 2025, startups have been guaranteed 334 loans amounting to around Rs. 808  crore under CGSS.

With regard to applications received under programmes implemented by NITI Aayog and the Department of Science and Technology (DST), under the Atal Research and  Innovation  for  Small  Enterprises  (ARISE)  - Atal  New  India Challenge  (ANIC)  programme  of  NITI  Aayog,  405  startup  applications  have been  received  during  the  last  five  years.  Of  these,  102  applications  were received under ANIC 1.0 and 303 applications under ANIC 2.0.

Further,  the  Department  of  Science  and  Technology  (DST),  through  the National Initiative for Developing and Harnessing Innovations (NIDHI) programmes, has received a large number of applications from innovators and startups.  Under NIDHI-PRAYAS,  around  20,000  applications  have  been received so far through 57 incubators.

- (c) & (d): Selection of startups for funding and support under Schemes of Startup India is  undertaken  through  structured  evaluation  mechanisms  defined  in  the respective Scheme guidelines.

Under FFS, AIFs approach SIDBI for investment. The AIF proposal is then placed  before  the  Venture  Capital  Investment  Committee  (VCIC)  for  its recommendation. AIFs are pooled investment vehicles which raise funds from investors/ contributors and invest, inter-alia, in securities of unlisted companies such as startups as per their investment methodologies  and in line with the guidelines of the scheme as available online at https://www.dpiit.gov.in/offerings/schemes-and-services/details/startup-indiainitiative-MTMzYDNtQWa.

Under SISFS, the Experts Advisory Committee (EAC) is responsible for the overall  execution  and monitoring of SISFS. The EAC evaluates and selects incubators for allocation of funds under the Scheme. Each selected incubator has an Incubator Seed Management Committee (ISMC), consisting of experts that  evaluates  and  selects  startups  for  seed  support.  ISMC  determines  the quantum and kind of funding (in accordance with the guidelines of SISFS) to eligible startups.

Under CGSS, the Management Committee (MC) is responsible for reviewing, supervising and  monitoring  the  functioning  of  CGSS.  The  MC  is  fully empowered to appraise  the  performance  of  the  scheme.  The  MIs  evaluate credit applications by using prudent banking judgement and use their business discretion  /  due  diligence  in  selecting  commercially  viable  proposals  and conduct/monitor the account(s) of the borrowers with normal banking prudence, as outlined in Scheme guidelines as available online at:

https://www.ncgtc.in//content/products/0/20250509/Gazette\_Notification\_CGSS \_8th\_May\_2025\_44e1a2d0dc.pdf

Any grievances raised by startups, including those related to the evaluation of applications,  are  examined  by  the  relevant  stakeholder  or  the  concerned implementing  agency.  Further,  grievances  related  to  the  schemes  raised through  the  Centralized  Public  Grievance  Redress  and  Monitoring  System (CPGRAMS) are also examined, and appropriate actions are taken as per the extant processes/guidelines of CPGRAMS.

- (e) & (f): All  programs and Schemes under the Startup India initiative, including FFS, SISFS and CGSS, are implemented on a pan- India basis with multiple specific outreach and awareness measures undertaken to expand coverage. Further, as detailed in parts (c) & (d) above, each Scheme has a structured framework, operational guidelines, and redressal mechanisms to provide fair opportunities to all startups from across the country. Specifically for incubation, under SISFS, applicants  can  apply  for  seed  fund  from  any  three  incubators selected  as disbursing partners for the scheme in order of their preference, irrespective of the location of the incubator.

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 across regions. The Government also encourages and supports ecosystem-led initiatives such as Startup Mahakumbh, which serves as a vibrant platform for stakeholders to network and collaborate. Initiatives to improve market access and enable public procurement support startups in growing and scaling up their businesses.  These  measures  are  complemented  by  regulatory  reforms  and other  ecosystem  development  events  and  programs.  Specific  measures undertaken to promote the startup ecosystem across States/Union Territories (UTs), including districts in Rajasthan, are placed as Annexure-I.

As a result of such initiatives, in the State of Rajasthan, 7,698 entities have been  recognized  as  startups  by  the  Government  as  on  31 st   January  2026. Specifically, 35 startups have been recognized from the district of Banswara, and 26 startups have been recognized from the district of Dungarpur as on 31 st January 2026.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (e) & (f) OF THE LOK SABHA UNSTARRED QUESTION NO. 4048 FOR ANSWER ON 17.03.2026.

The details of various measures being undertaken to promote the startup ecosystem across the country are as follows:

## 1.  Capacity Building and Handholding

Capacity  building  workshops  are  undertaken  throughout  the  year  across  regions including  nonmetro  cities  under  the  States'  Startup  Ranking  ('SRF')  exercise  to promote and handhold States and UTs in developing regional ecosystems. Monitoring, capacity development, and handholding sessions are also conducted specifically for incubators  beyond  metro  cities  and  regions.  Various  other  startup  workshops  and demos  are  organized  to  handhold  startups  to  access  the  flagship  schemes  and challenges launched under Startup India.

## 2.  Outreach and Awareness

Outreach  and  awareness  activities  for  startups  are  organized  across  the  country including  in  areas  beyond metropolitan cities.  These  activities  include encouraging entrepreneurs  from  non-metropolitan  cities  and  enabling  opportunities  for  funding, incubation, mentorship and business linkages in collaboration with State/UT administrations. Various startup showcases are also organised where startups pitch their business proposals to investors and participate in capacity building activities. The programs implemented under the Startup India initiative are also propagated through various social media platforms.

## 3.  Ecosystem Development Events and Programs

Various national ecosystem development events and programs are held such as the Startup Mahakumbh, which fosters innovation and entrepreneurship by bringing the ecosystem together from various parts of the country; ASCEND (Accelerating Startup Caliber & Entrepreneurial Drive) sensitization workshops on startups and entrepreneurship are conducted across North Eastern States to support upcoming entrepreneurs from the region; and the Startup India Innovation week is held around the National Startup Day i.e., 16th January, to celebrate entrepreneurship and promote innovation with stakeholders from across India.

## 4.  International Exposure and Linkages

The Startup20 Engagement Group was institutionalised under India's G20 Presidency to  facilitate  harmonisation  and  cross  collaboration  amongst  the  largest  global economies. The meetings and engagements of Startup20 Engagement Group under India's  G20  Presidency  were  held  across  the  country  providing  access  to  global market, visibility and resources of India's regionals startup ecosystems. International linkages  are  further  developed  through  international  Government  to  Government partnerships,  participation  in  international  forums,  hosting  of  global  events,  and international bridges with different countries that aid in promoting cross collaboration.

## 5.  Encouraging Ecosystem Collaboration

The  Government  launched  the  Startup  India  Hub  portal  for  stakeholders  of  the entrepreneurial  ecosystem  in  India  to  discover  resources,  information,  and  various benefits under the Startup India initiative on a common digital platform. This portal enables various programs  and  initiatives to be accessed  digitally, improving accessibility for entrepreneurs and startups even from nonmetro cities and regions.

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