Startup India

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Startup India
Startup India logo.png
Prime Minister(s)Narendra Modi
MinistryMinistry of Commerce and Industry
(Department for Promotion of Industry and Internal Trade)
Key peopleSuresh Prabhu, Piyush Goyal
Launched16 January 2016; 4 years ago (2016-01-16)
Vigyan Bhavan, New Delhi

Startup India is an initiative of the Government of India. The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi.[1]

The action plan of this initiative is focussing on three areas:

  1. Simplification and Handholding.
  2. Funding Support and Incentives.
  3. Industry-Academia Partnership and Incubation.

An additional area relating to this initiative is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances. It was organized by The Department for promotion of industry and internal trade (DPI&IT).[2]

A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than 100 crore (US$14 million).[3] Under this initiative, the government has already launched the I-MADE program, to help Indian entrepreneurs build 10 lakh (1 million) mobile app start-ups, and the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds.[4] Initial capital of 20,000 crore (equivalent to 230 billion or US$3.2 billion in 2019) has been allocated for this scheme.

Key points[edit]

  • 10,000 crore startup funding pool.
  • Reduction in patent registration fees.
  • Improved Bankruptcy Code, to ensure a 90-day exit window.
  • Freedom from inspections for first 3 years of operation.
  • Freedom from Capital Gain Tax for first 3 years of operation.
  • Freedom from tax for first 3 years of operation.
  • Self-certification compliance.
  • Created an Innovation hub, under the Atal Innovation Mission.
  • To target 5 lakh schools, and involve 10 lakh children in innovation-related programmes.
  • New schemes to provide IPR protection to startup firms.
  • Built Startup Oasis as Rajasthan Incubation Center.


The event was inaugurated on 16 January 2016 by The Former Finance Minister of India Arun Jaitley. Among the attendees were CEOs, startup founders and venture capitalists.[5][6]

Government's role[edit]

The Ministry of Human Resource Development and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIPERs).[7]

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to an ecosystem that is conducive for the growth of start-up businesses.[8]


SoftBank, which is headquartered in Japan, has invested US$2 billion into Indian startups. The Japanese firm has pledged to invest US$10 billion. Google declared to launch a startup, based on the highest votes in which the top three startups will be allowed to join the next Google Launchpad Week, and the final winner could win an amount of US$100,000 in Google cloud credits.[9] Oracle on 12 February 2016 announced that it will establish nine incubation centers in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vijayawada.[10] Rs 1000 crore Fund of Funds for startups are reserved for women-led startups.[11]

State rankings[edit]

The result of first ever startup state ranking were announced in December 2018 by the Department of Industry and Internal Trade based on the criteria of policy, incubation hubs, seeding innovation, scaling innovation, regulatory change, procurement, communication, North-Eastern states, and hill states.[12]

The 2018 Startup State Rankings are:[12]

State initiatives[edit]

Kerala has initiated a government startup nodal agency called "Kerala Startup Mission (KSUM)". KSUM supports startup ecosystem by means of different components such as Infrastructure, Human Capital Development, Funding,Governance, Public-Private Partnership,Global collaborations, Scaling Existing and Establishing New startup ventures from Startup-Boot Up-Scale up model for moving fast from ideas to IPO. It launched the largest Incubation space name Integrated Startup Complex in 2018 at the Kerala Technology Innovation Zone,Cochin.[13] The state also matches the funding raised by its incubator from Central government with 1:1.

Telangana has launched the largest incubation centre in India as "T-Hub".

Andhra Pradesh has allocated a 17,000-sq.ft. Technological Research and Innovation Park as a Research and Development laboratory. It has also created a fund called "Initial Innovation Fund" of 100 crore (US$14 million) for entrepreneurs.[14]

The government of Madhya Pradesh has collaborated with the Small Industries Development Bank of India (SIDBI) to create a fund of 200 crore (US$28 million).

Rajasthan has launched "iStart Rajasthan" & India's largest business incubation center - "Bhamashah Techno Hub".[15][16]

In order to promote start-ups in Odisha, the state government organised a two-day Start-up Conclave in Bhubaneswar on November 28, 2016.[17][18]

Higher education alliances[edit]

As per the "Industry-Academia Partnership and Incubation" focus of the Startup India initiative, the Union Ministry of Human Resource Development has announced plans for the development of "Research Parks" to be created in partnership with higher education providers across India. An initial investment of Rs.100 crore, has been set aside for the program, which aims to provide students with access to funds and mentorship for startups.[19]

The Innovation in Mobile App Development Ecosystem (I-MADE) program was also rolled-out in February 2016. An initiative developed in partnership with The Department Of Telecommunications (Govt of India), Telecom Centres of Excellence (TCOE), EVC Ventures, and Unifyed, it aims to help Indian entrepreneurs create mobile app startups.[20][21] The program is scheduled to last for 5 years, and has collaborated with 11 Indian universities.[22]

See also[edit]


  1. ^ "PM Modi in Mann Ki Baat: 'Start Up India, Stand Up India' action plan on January 16 - Times of India", The Times of India
  2. ^ "Start-Up India plan on Jan 16: Modi on Mann ki Baat". The Indian Express. 27 December 2015.
  3. ^ Gazette Notification by Ministry OF Commerce and Industry (PDF), 19 February 2019
  4. ^ "Report: PM scheme generates 1.68 crore jobs in 2 years", The Hindu Business Line, 8 September 2017
  5. ^ "Startup India action plan to provide final break from license raj: Arun Jaitley", The Economic Times
  6. ^ "PM Narendra Modi to unveil startup action plan today as a major breakthrough for entrepreneurship in India - The Economic Times", The Economic Times
  7. ^ "Start up India: This is the beginning of big bang start up boom in India, says Softbank CEO", The Hindu, 16 January 2016
  8. ^ "RBI to create enabling framework for growth of start-ups". The Hindu. 2 February 2016. ISSN 0971-751X. Retrieved 4 February 2016.
  9. ^ "Startup India event Live: Adventure, doing the impossible is all entrepreneurship, says Uber CEO Travis Kalanick", The Financial Express, 16 January 2016
  10. ^ "After Digital India, Oracle seeks to participate in Make in India, Start-up India", Live Mint, 13 February 2016
  11. ^ "Modi's Startup India to give funding, incubation, more to these many women-run businesses". The Financial Express. 7 December 2019. Retrieved 10 December 2019.
  12. ^ a b DIPP ranking: Gujarat on top, Economic Times, 20 Dec 2018.
  13. ^ "Startup Mission to ink pact for innovation zone". The Hindu. 3 January 2016. ISSN 0971-751X.
  14. ^ PM Modi to launch 'Startup India' campaign today
  15. ^ "Rajasthan government's iStart enrols 300 startups in one month". The Economic Times. 3 December 2017. Retrieved 9 May 2020.
  16. ^ "India's Largest Business Incubator Bhamashah Techno Hub Launched In Jaipur, And Its Services Are Free". Inc42. 23 August 2018. Retrieved 9 May 2020.
  17. ^ IANS (5 October 2016). "Odisha to organise start-up conclave". Business Standard India. Retrieved 20 October 2016.
  18. ^ "Odisha to organise startup conclave - Times of India". The Times of India. Retrieved 20 October 2016.
  19. ^ "With 'start-up India', research parks to bloom", The Hindu, 23 October 2015, ISSN 0971-751X
  20. ^ Team, Editorial. "I-MADE Program For 35,000 Institutions Inaugurated By Mr. J. S. Deepak, Secretary, Department Of Telecommunications". EdTechReview. Retrieved 23 January 2018.
  21. ^ "The i-MADE Program | EdTechReview". Retrieved 23 January 2018.
  22. ^ "11 institutions selected under I-MADE program - IndiaEducationReview". IndiaEducationReview. 12 February 2016. Retrieved 23 January 2018.