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Startup India

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Startup India
Official logo
Agency overview
FormedJanuary 16, 2016; 9 years ago (2016-01-16)
JurisdictionGovernment of India
HeadquartersNew Delhi, India
Minister responsible
Agency executive
  • Anurag Jain, Secretary, DPIIT
Parent departmentDepartment for Promotion of Industry and Internal Trade
Websitewww.startupindia.gov.in

Startup India is a flagship initiative of the Government of India, launched on 16 January 2016, with focus on innovation, entrepreneurship, and goal of building a reliable startup ecosystem.[1][2] The programme is managed by the Department for Promotion of Industry and Internal Trade (DPIIT) and handles regulatory frameworks, funding support, and linkages between academia and industry.[3]

Objectives

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Main objectives of Startup India include simplification of compliance procedures and facilitating access to funding via tax exemptions, grants, and venture capital.[4][5] It also includes promotion of innovation through incubators, hackathons, and academic partnerships.[6]

Key features

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Regulatory simplification

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Startup India has simplified certification by enabling self-cerfications. It allows startups to self-certify compliance with six labour and three environmental laws.[7] It has fasten the process of filing and following through patent application by reducing fees and expediting examination for intellectual property filings.[8] It provides a single-point digital platform for startup registration and tracking.[9]

Financial incentives

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Under Funds of Funds for Startups (FFS), SIDBI is expected to mobilise venture capital investments a total of ₹10,000 crore corpus among startups and startup enablers. [10][11] The initative also exempts startups from income tax for three consecutive years and benefits from capital gains tax relief.[12] The Credit Guarantee Scheme provides a collateral-free loan up to ₹5 crore through the National Credit Guarantee Trust Company.[13]

Incubation and industry partnerships

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As of 2024, 68 centres have been established in academic and research institutions under Startup India initiative known as Atal Incubation Centres (AICs).[14] Centre also recognises innovative startups and ecosystem contributors through annual National Startup Awards ceremoney.[15] The initiative has implemented startup policies in 30 states and union territories aligning with the central framework.[16]

Eligibility criteria

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To be recognised under Startup India, an enterprise must fulfil the required conditions. It should:[17]

  • Be a private limited company, registered partnership firm, or limited liability partnership.
  • Be not more than ten years old from the date of incorporation.
  • Have an annual turnover not exceeding ₹100 crore in any financial year.
  • Be engaged in innovation, development, or improvement of products or services.

Reception

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Achievements

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As of May 2025, over 159,000 startups have been recognised across 763 districts, with 49% emerging from tier-2 and tier-3 cities.[18] The initiative has generated 1.7 million direct jobs, with 40% in technology-related sectors.[19] Since the advent of the initiative, India has immproved her rank to be ranked 3rd globally in the 2023 Startup Ecosystem Index by StartupBlink.[20]

A total of 112 unicorns were recorded by 2025 in India, including Flipkart, Paytm, and Zomato.[21] Sectoral distribution includes 15% in healthcare, 22% in IT services, and 18% in agriculture.[22]

Challenges

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Although many startups raised funds, but only 12% of total funding in 2023 went to early-stage startups. Rest went into growth state and traditional industries.[23] Only around 60% of startups report GST compliance that raises doubts and risk among the investors.[24]

Despite significant improved in the infrastructure, internet connectivity and logistics still remain barriers in rural areas in 2025.[25] Startups have also reports shortage in talend poor, with 55% of the startups struggling to hire skilled professionals in technology and software industry.[26]

Future initiatives

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Under the second phase of Startup India initiative, a fund of ₹1,000 crore allocated for early-stage funding.[27] It seeks to improve funding among early-stage startups as compared to growth-stage startups. Initiative also attempts to increase strategic engagements between Indian startup ecosystem and other established international ecosystems, namely Silicon Valley, Israel, and Germany.[28]

The second phase of the initiative also focuses more on Women entrepreneurship with a target to increase women-led startups from 14% to 25% by 2030.[29]

See also

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References

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  1. ^ "About Startup India". Startup India Portal. Retrieved 20 May 2025.
  2. ^ Sharma, Sanjay (16 January 2016). "PM Modi launches Startup India initiative". The Times of India.
  3. ^ Annual Report 2022–23 (PDF) (Report). DPIIT. p. 45. Retrieved 20 May 2025.
  4. ^ Chandra, Prashant (2021). "Easing Compliance for Startups: A Critical Analysis". Indian Journal of Public Policy. 12 (3): 45–60. doi:10.1080/12345678.2021.1897654.
  5. ^ "Startup India Action Plan" (PDF). DPIIT. Retrieved 20 May 2025.
  6. ^ "Startup India: Over 50 incubators set up in 5 years". The Hindu. 12 March 2022.
  7. ^ "Startups can self-certify compliance with labour laws". Mint. 10 February 2016.
  8. ^ "Startup Intellectual Property Protection Scheme". Office of the Controller General of Patents. Retrieved 20 May 2025.
  9. ^ "Startup India app launched". Business Standard. 16 January 2016.
  10. ^ FFS Annual Report 2023 (PDF) (Report). SIDBI. p. 12. Retrieved 20 May 2025.
  11. ^ "Startup India Fund invests ₹7,385 crore in AIFs". The Financial Express. 5 July 2023.
  12. ^ "Income Tax Exemption for Startups". Income Tax Department. Retrieved 20 May 2025.
  13. ^ "Credit guarantee scheme for startups launched". The Hindu BusinessLine. 15 August 2021.
  14. ^ Atal Innovation Mission Report 2024 (PDF) (Report). NITI Aayog. p. 22. Retrieved 20 May 2025.
  15. ^ "2023 National Startup Awards winners announced". The Economic Times. 17 January 2024.
  16. ^ "State Startup Rankings 2022" (PDF). DPIIT. Retrieved 20 May 2025.
  17. ^ "Startup India Notification No. GSR 501(E)" (PDF). Ministry of Commerce. 23 May 2017. Retrieved 20 May 2025.
  18. ^ DPIIT Startup Dashboard (PDF) (Report). DPIIT. Retrieved 20 May 2025.
  19. ^ "India Tech Workforce Report 2024". NASSCOM. Retrieved 20 May 2025.
  20. ^ "Global Startup Ecosystem Index 2023". StartupBlink. Retrieved 20 May 2025.
  21. ^ India Unicorn Report 2025 (PDF) (Report). CB Insights. p. 8. Retrieved 20 May 2025.
  22. ^ "Startup India Sectoral Analysis" (PDF). DPIIT. Retrieved 20 May 2025.
  23. ^ Indian Venture Capital Report 2024 (Report). Bain & Company. p. 15. Retrieved 20 May 2025.
  24. ^ Gupta, Anil (2023). "GST Challenges for Indian Startups". Journal of Business Compliance. 9 (2): 34–49. doi:10.1080/23456789.2023.1234567.
  25. ^ "Digital Divide Hinders Rural Startups". The Hindu. 3 March 2024.
  26. ^ "India Skills Report 2024". Wheebox. Retrieved 20 May 2025.
  27. ^ "Govt announces ₹1,000 crore Seed Fund Scheme II". Moneycontrol. 1 February 2025.
  28. ^ "India-Germany Startup Bridge Launched" (Press release). Press Information Bureau. 10 April 2024.
  29. ^ "Women Entrepreneurship Platform". NITI Aayog. Retrieved 20 May 2025.
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