|Prime Minister(s)||Narendra Modi|
|Ministry||Ministry of Commerce and Industry|
(Department for Promotion of Industry and Internal Trade)
|Key people||Suresh Prabhu, Piyush Goyal|
|Launched||16 January 2016|
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.
The action plan of this initiative is focussing on three areas:
- Simplification and Handholding.
- Funding Support and Incentives.
- 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).
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). 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. Initial capital of ₹20,000 crore (equivalent to ₹230 billion or US$3.2 billion in 2019) has been allocated for this scheme.
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politics and government of
- 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 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).
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.
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. Oracle on 12 February 2016 announced that it will establish nine incubation centers in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vijayawada. Rs 1000 crore Fund of Funds for startups are reserved for women-led startups.
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.
The 2018 Startup State Rankings are:
- Best performer: Gujarat
- Top performers: Karnataka, Kerala, Odisha, and Rajasthan
- Leader: Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, and Telangana
- Aspiring leaders: Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh, and West Bengal
- Emerging states: Assam, Delhi, Goa, Jammu & Kashmir, Maharashtra, Punjab, Tamil Nadu, and Uttarakhand
- Beginners: Chandigarh, Manipur, Mizoram, Nagaland, Puducherry, Sikkim, and Tripura
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. 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.
Higher education alliances
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.
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. The program is scheduled to last for 5 years, and has collaborated with 11 Indian universities.
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