Lok Sabha Question No. 1829 (UNSTARRED), answered on 2026-02-10
Subject: Startup India Programme
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Mohibbullah

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

## LOK SABHA

UNSTARRED QUESTION NO. 1829.

TO BE ANSWERED ON TUESDAY, THE 10 TH  FEBRUARY, 2026.

## STARTUP INDIA PROGRAMME

## 1829.  SHRI MOHIBBULLAH:

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

- (a) whether  the  Government  has  reviewed  the  outcomes  of  the  Startup  India programme  during the last decade, such as semiconductors, artificial intelligence, batteries, defence, space and quantum computing;
- (b) if so, the key findings of such a review; and
- (c) the  specific  policy  measures,  incentives  and  timelines  have  been  proposed under the next phase of Startup India to promote deep-tech entrepreneurship, strengthen domestic R&D  and  reduce India's dependence  on foreign technology supply chains?

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

As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th  February  2019,  entities  are  recognised  as  'startups'  under  the  Startup India  initiative by the Department for Promotion of Industry and Internal Trade (DPIIT). Sustained efforts by the Government under the Startup India initiative have led to an increase in the number of entities recognized as startups, and job creation. As on 31st December 2025, a total of 2,07,135 entities have been recognised  as  startups.  These  recognized  startups  have  reported  to  have created over 21.9 lakh direct jobs.

Out of the total entities recognised as startups, over 14,400 startups have been recognized in sectors and industries such as Aeronautics Aerospace & Defence (including  Defence Equipment and Space Technology), Artificial Intelligence (AI), and Technology Hardware (including Semiconductor) which have reported to have created more than 1.25 lakh direct jobs.

Such  recognized  startups  have  also  benefitted  through  the  three  flagship Schemes of the Government under Startup India initiative, namely, 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 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. Specifically,  in  the  Artificial  Intelligence  /  Robotics  and  Space  Tech  sectors, supported AIFs have invested around Rs. 916.49 crore in 48 startups as on 31st December 2025.

SISFS provides financial assistance to seed stage startups through incubators. SISFS  is  implemented  from  1st  April  2021.  Specifically,  in  the  Aeronautics Aerospace & Defence (including Defence Equipment and Space Technology), Artificial Intelligence (AI), and Technology Hardware (including Semiconductor) sectors  and  industries,  selected  incubators  have  approved  around  Rs.  73.4 crore to 406 startups as on 31st December 2025.

CGSS is implemented for enabling debt funding 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. Specifically, in the Aerospace & Defence sector/industry 14 loans amounting  to  around  Rs.  68.30  crore  have  been  guaranteed  for  startup borrowers as on 31st December 2025.

Further, various steps are being taken to promote deep tech entrepreneurship, strengthen  domestic  R&D  and  domestic  supply  chains  through  a  whole-ofgovernment  approach  including  in  areas  such  as  semiconductors,  artificial intelligence, batteries, defence, space and quantum computing. Details of such initiatives by various Ministries and Departments are placed as Annexure-I.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 1829 FOR ANSWER ON 10.02.2026.

## Details  of  initiatives  undertaken  by  various  Ministries  and  Departments  are  as follows:

1. National Quantum Mission (NQM): NQM is implemented by the Department of Science  and  Technology  (DST)  under  which  four  thematic  hubs  have  been established. These hubs focus on key areas: Quantum Computing at the Indian Institute of Science Bengaluru, Quantum Communication at the Indian Institute of Technology Madras in association with C-DoT, Quantum Sensing & Metrology at the Indian Institute of Technology Bombay, and Quantum Materials & Devices at the  Indian  Institute  of  Technology  Delhi.  All  four  Hubs  are  now  fully  functional, driving technology development, nurturing human capital, promoting entrepreneurship, strengthening Industry partnership and advancing international collaborations. These hubs are uniting academia, national laboratories, industry, and startups to translate scientific breakthroughs into deployable technologies while building critical infrastructure and skilled manpower for India's quantum ecosystem and reduce India's dependence on foreign technology supply chains.

The NQM has actively engaged with startups to foster innovation and accelerate the  development  of  quantum  technologies  in  India.  Recognizing  that  quantum technologies  are  still  in  their  nascent  stage  and  require  substantial  investment, NQM formulated exclusive guidelines to effectively onboard and support startups in this  domain.  The  Mission  is  to  support  an  expanding  pool  of  quantum  startups, providing them with funding, access to advanced infrastructure at Thematic Hubs (T-Hubs),  and  mentorship  opportunities  through  partnerships  with  industry  and strategic  sectors.  Accordingly,  a  rolling  call  has  been  launched  by  the  NQM  to support startups in the area of Quantum Technologies.

2. IndiaAI Mission : Through initiatives like the IndiaAI Mission under the  Ministry of Electronics and Information Technology (MeitY), the Government is accelerating the momentum with targeted investments and public-private partnerships. These efforts  aim  to  strengthen  India's  global  position  and  ensure  responsible  and inclusive  leadership  in  AI.  The  Mission  is  structured  around  seven  foundational pillars:
- i. IndiaAI Compute Capacity: Providing affordable access to high-end computing resources, including GPUs, for startups, MSMEs and researchers
- ii. IndiaAI  Foundation  Models:  Developing  indigenous  large  multimodal  and language  models  trained  on  Indian  datasets  and  languages  to  ensure sovereign capability in generative AI
- iii. AIKosh: Creating a unified platform of high-quality datasets from government and non-government sources for AI model development
- iv. IndiaAI  Application  Development Initiative:  Supporting  AI  solutions  for  Indiaspecific challenges in sectors such as healthcare, agriculture, climate resilience, governance and assistive technologies
- v. IndiaAI  FutureSkills:  Expanding  India's  AI  talent  pipeline  through  increased undergraduate, postgraduate and PhD programmes, along with Data and AI Labs in Tier-2 and Tier-3 cities
- vi. IndiaAI Startup Financing: Providing financial support to AI startups
- vii. Safe & Trusted AI: Supporting projects focused on reducing bias, protecting privacy, improving transparency and managing AI-related risks while enabling innovation
3. Design Linked Incentive (DLI) Scheme: The DLI Scheme has been approved as part of the Semicon India Programme to support domestic companies, start-ups, and MSMEs  for designing semiconductor IP cores, ASICs, SoCs, and semiconductor-linked designs. The DLI Scheme provides support through a threetier framework, comprising Design Infrastructure Support with access to EDA tools, IP  cores,  MPW  services,  and  prototyping  facilities;  a  Product  Design  Linked Incentive offering reimbursement of up to 50% of eligible project costs, capped at Rs.  15  crore  per  application;  and  a  Deployment  Linked  Incentive  providing reimbursement of net sales turnover ranging from 6% to 4% over five years, capped at Rs. 30 crore per application.

Under  the  DLI  Scheme,  fiscal  support  has  been  approved  to  24  projects  for designing chips and System on Chip (SoCs) for various applications. In addition, centralized  access  of  advanced  chip  design  tools  has  been  provided  to  100+ startup/ MSME companies. These companies are designing chips across various sectors  which  include  satellite  communication,  drone  detection,  surveillance camera, power management for Internet of Things (IoT) devices, LED driver, IoT and medical applications, broadband application, smart meter, gas sensors, and general-purpose microprocessor Intellectual Property (IP) cores for edge AI etc. While these startups are at various stages of design, development, and prototyping, 16  design  tape-outs  have  been  carried  out,  7  chips  have  been  fabricated  on advanced  nodes  (including  12  nm),  10  patents  have  been  filed,  and  over  140 reusable core IPs have been developed.

4. Initiatives undertake by the Defence Research and Development Organisation (DRDO): The  following  initiatives  has  been  taken  by  DRDO  under  Ministry  of Defence  through  which  private  sector  especially  MSMEs  and  Startups  are encouraged to participate in Defence R&D by providing them with Grant-in-Aid. This Scheme  aims  to  indigenize  production  of  Defence  equipment  thereby  reducing India's dependence on defence imports:
- i. Technology  Development  Fund  (DTDF)  Scheme  Technology  Development Fund Scheme is a Programme of MoD ( Ministry of Defence) executed by DRDO under Make in India initiatives. The Government has approved TDF

Scheme to encourage industries especially MSMEs and Startups to design and develop innovation Defence technologies.

- ii. Dare to Dream Pan India Innovation contest Dare to Dream is a Pan India Innovation Contest to support Startups & Innovation to contribute in Defence ecosystem.  Through  this  contest,  DRDO  invites  innovation  ideas  and  best ideas are selected and awarded. Four versions of Dare to Dream Contest have already been successfully conducted.
- iii. Special  focus  on  Development  of  Critical  and  DeepTech  Technologies  by involving startups and academia as collaborative development.
5. Innovations  for  Defence  Excellence  (iDEX)  and  Acing  Development  of Innovative Technologies with iDEX (ADITI) : Under the Ministry of Defence, iDEX and  ADITI  Schemes  are  fostering  innovation  and  technology  development  in defence and aerospace by engaging startups.
6. Anusandhan National Research Foundation (ANRF): ANRF has initiated  the program,  Mission  for  Advancement  in  High-impact  Areas  (MAHA)  to  address priority-driven, solution-focused research in mission-mode.
7. IN-SPACe, Department of Space : Department of Space has undertaken various promotion and investment Schemes such as Preincubation Entrepreneurship, Seed Fund, Technology Adoption Fund, and Rs. 1,000 crore Venture capital fund.
8. Production Linked Incentive Scheme on National Programme on Advanced Chemistry  Cell  (ACC)  Battery  Storage :  The  Government  has  approved  PLI Scheme  for  manufacturing  of  ACC  in  the  country  with  a  budgetary  outlay  of Rs.18,100 crore. The scheme aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
9. Startup India initiative : Under Startup India initiative , the Government constantly undertakes various efforts, including policy, regulatory and fiscal measures, for the development and growth of startup ecosystem across sectors and industries. The Government 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.  Government  also encourages and support ecosystem led initiatives as Startup Mahakumbh which serve as a vibrant platform for stakeholders to network and collaborate. Initiatives to improve market access and enable public procurement also support startups in growing  and  scaling  up  their  businesses  have  also  been  undertaken.  The Government has also taken various measures to enhance ease of doing business including starting up of business, raising capital, and reducing compliance burden to simplify the regulatory environment and create a conducive business environment.

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