Lok Sabha Question No. 1337 (UNSTARRED), answered on 2016-05-02
Subject: Startup India
Ministry: COMMERCE AND INDUSTRY
Asked by: DEVAJIBHAI GOVINDBHAI FATEPARA, ADVOCATE NARENDRA KESHAV SAWAIKAR, BHAGWANTH KHUBA, Richard Hay

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1337. TO BE ANSWERED ON MONDAY, THE 2 ND  MAY, 2016.

## STARTUP INDIA

1337.  SHRI DEVAJIBHAI G. FATEPARA:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI BHAGWANTH KHUBA:

PROF. RICHARD HAY:

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

## वाणिज ् य एवं उद्योग मंत्री

- (a) whether the Government has launched Start-up India action plan recently and if so, the salient features of the scheme along with the target fixed and the budget sanctioned thereunder;
- (b) whether  any  emphasis  has  been  laid  on  the  rural/backward  regions  of  the country  in  the  scheme  and  if  so,  the  details  thereof  along  with  the  activities identified and businesses covered thereunder;
- (c) whether the Government proposes to link up the programme with IITs and IIMs and if so, the details thereof;
- (d) whether  the  Government  proposes  to  set  up  lenient  regulatory  framework  to encourage foreign investments under the said programme and if so, the details thereof along with the reaction of the foreign investors thereto; and
- (e) whether the Government has received requests from the Start-ups to address the delay in incorporation, employee stock options, lack of initial funding, cumbersome Foreign Exchange Management Act documentation and access to External  Commercial  Borrowings  and  if  so,  the  details  thereof  along  with  the action taken thereon?

## ANSWER

वाणिज्् य्एवं्उद्योग्ााज्् यमंत्री्स्् वतंंत्र््रभााा(स्ीमतंी्निममला्सीतंाामि(् THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

(a) to (e):  A statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  1337  FOR  ANSWER  ON  02.05.2016  REGARDING STARTUP INDIA.

- (a): An  Action  Plan  for  Startup  India  to  build  a  strong  eco-system  to  nurture innovation  and  Startups  in  the  country  was  launched  on  16 th January  2016. Salient features of the scheme are as follow:
- i. Simplification and Handholding
-  Simple Compliance Regime for startups  based on Self-certification
-  Launch  of  Mobile  app  and  Portal  for  compliance  and  information exchange
-  Startup India Hub to handhold startups during various phases of their development
-  Legal support  and fast-tracking patent examination at reduced costs
-  Relaxed norms of public procurement for startups
-  Faster exit for startups
- ii. Funding support and Incentives
-  Providing  funding  support  through  a  Fund  of  Funds  with  a  corpus of Rupees 10,000 crore
-  Credit guarantee fund for startups
-  Tax exemption on capital gains invested in Fund of Funds
-  Tax exemption to startups for 3 years

## iii. Industry-Academia Partnership and Incubation

-  Organizing  Startup  Fests  to  showcase  innovations  and  providing collaboration platforms
-  Launch of  Atal  Innovation  Mission  (AIM)  with  Self  -Employment  and Talent Utilization (SETU) Program of NITI Aayog
-  Harnessing private sector expertise for setting up incubators
-  Setting up of 7 new research parks modeled on the Research Park at IIT Madras
-  Launching of innovation focused programs for students.
-  Annual Incubator Grand Challenge to promote good practices among incubators.
- iv. Credit Guarantee Fund

The initiative  provides  for  creating  a  credit  guarantee  fund  for  startups through  National  Guarantee  Trust  Company  (NCGTC)/SIDBI  with  a Corpus of Rs.500 crore per year for the next four years.

- (b): With this  Action Plan the Government hopes to accelerate spreading of the startup movement:
-  From  digital/technology  sector  to  a  wide  array  of  sectors  including agriculture,  manufacturing,  social  sector,  healthcare,  education,  etc; and
-  From existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and rural areas.
- (c): The Action Plan envisages setting up of 7 New Research Parks modeled on the  Research  Park  at  IIT  Madras  at  IITs  in  Guwahati,  Hyderabad,  Kanpur, Kharagpur,  Bangalore,  Gandhinagar  and  Delhi  and  setting-up/scaling-up  of 18  Technology  Business  Incubators  (TBI)  at  NITs/IITs/IIMs  etc.  as  per  the funding model of DST.
- (d) & (e): No, Madam.

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