Startup India
What is Startup India?
- Flagship initiative of Government of India launched to build a strong ecosystem for nurturing innovation and startups in the country.
- Announced by Prime Minister Narendra Modi on 15 August 2015 from the ramparts of Red Fort.
- Launched formally on 16 January 2016 by Modi at Vigyan Bhawan, New Delhi.
Objectives
- Foster entrepreneurship and promote innovation.
- Facilitate bank finance for startups.
- Simplify incorporation & compliance norms.
- Hand-hold startups through mentorship & incubation.
- Provide tax exemptions & intellectual-property fast-tracking.
Key Facts & Figures (as on 31 March 2024)
| Metric | Figure |
|---|---|
| Total DPIIT-recognized startups | 1,17,254 |
| States/UTs covered | 30 |
| Number of incubators supported | 1,000+ |
| Jobs reported created | 12+ lakh |
| Fund-of-Funds corpus (₹) | ₹10,000 crore |
| Startups funded through FFS | 1,000+ |
| Women-led startups | ~45 % |
Timeline – Important Dates
| Date | Event |
|---|---|
| 15 Aug 2015 | Announcement by PM from Red Fort |
| 16 Jan 2016 | Launch of Startup India Action Plan |
| 17 Jan 2017 | 1st Startup India Investment Summit |
| 6 Apr 2018 | Startup India Yatra (van outreach) flagged off |
| 19 Jan 2019 | 2nd edition of Startup India Global Venture Capital Summit, Goa |
| 5 Oct 2021 | Startup India Seed Fund Scheme (SISFS) operationalised |
| 16 Jan 2022 | 6th Startup India Anniversary; “Startup India Showcase” portal launched |
| 16 Jan 2023 | National Startup Awards 2023 announced |
| 16 Jan 2024 | 8th anniversary; 100+ startups selected under SISFS Round-4 |
Core Components of the Action Plan (2016)
- Simplification & Hand-holding
- Mobile-first portal & regulatory self-certification.
- Funding Support & Incentives
- Fund-of-Funds (FFS) managed by SIDBI; ₹10 k cr corpus; 1.5× leverage on private VC money.
- Industry-Academia Partnership & Incubation
- Atal Innovation Mission (AIM) & 10,000 Atal Tinkering Labs.
- Tax Benefits
- 3-year income-tax holiday (80-IAC) & exemption on capital-gains (54GB).
- Patent & Trademark Fast-track
- Rebate of 80 % on patent filing fee; 50 % on trademark; disposal in 90 days.
Flagship Schemes – At a Glance
| Scheme | Launch Year | Nodal Ministry/Agency | Salient Feature |
|---|---|---|---|
| Fund-of-Funds (FFS) | 2016 | DPIIT → SIDBI | ₹10 k cr; invests in SEBI-registered AIFs |
| Startup India Seed Fund (SISFS) | 2021 | DPIIT | ₹945 cr; grants up to ₹50 lakh per startup |
| Credit Guarantee Scheme for Startups (CGSS) | 2022 | DPIIT & NCGTC | collateral-free debt up to ₹5 cr |
| Atal Innovation Mission (AIM) | 2016 | NITI Aayog | Atal Incubation Centers (AICs) & ATLs |
Institutional Framework
| Body | Role |
|---|---|
| Department for Promotion of Industry & Internal Trade (DPIIT) | Nodal ministry; recognition & benefits |
| Inter-Ministerial Board (IMB) | Certifies startups for tax exemption |
| SIDBI | Fund-of-Funds manager |
| NCGTC | Credit guarantee under CGSS |
| Startup India Hub (housed in Invest India) | Single-window facilitation |
Eligibility Criteria for DPIIT Startup Recognition
- Incorporated < 10 years; turnover < ₹100 cr in any FY.
- Working towards innovation / IP / scalable business.
- Not formed by splitting/reconstruction of existing business.
- Must obtain approval from IMB for tax benefits.
Quick Reference – Abbreviations
| Abbreviation | Full Form |
|---|---|
| DPIIT | Department for Promotion of Industry & Internal Trade |
| SIDBI | Small Industries Development Bank of India |
| SEBI | Securities & Exchange Board of India |
| AIF | Alternative Investment Fund |
| ATL | Atal Tinkering Lab |
| AIC | Atal Incubation Center |
| NCGTC | National Credit Guarantee Trustee Company |
One-Liner Revision Bullets
- Startup India announced 15 Aug 2015; launched 16 Jan 2016.
- DPIIT is the nodal ministry; portal www.startupindia.gov.in.
- Fund-of-Funds corpus ₹10,000 cr—largest public VC fund globally.
- 3-year tax holiday under Section 80-IAC; capital-gain exemption under 54GB.
- Startup India Seed Fund ₹945 cr; max grant ₹50 lakh.
- 1,17,254 startups recognised; 12+ lakh jobs; ~45 % women-led.
- 10,000 Atal Tinkering Labs in schools; 100+ AICs incubating startups.
- Credit Guarantee up to ₹5 crore under CGSS (2022).
- National Startup Awards given every year since 2020.
- States ranked on Startup India Ranking: Gujarat, Karnataka, Kerala top performers.
15+ MCQs for Railway Exams
Q1. Startup India initiative was announced by PM Narendra Modi on which date?
A) 26 Jan 2016
B) 15 Aug 2015
C) 16 Jan 2016
D) 25 Jan 2015
Answer
B) 15 Aug 2015Q2. Which ministry is the nodal agency for Startup India?
A) MSME
B) DPIIT
C) Finance
D) Commerce
Answer
B) DPIITQ3. What is the corpus of the Fund-of-Funds for Startups?
A) ₹5,000 cr
B) ₹7,500 cr
C) ₹10,000 cr
D) ₹12,000 cr
Answer
C) ₹10,000 crQ4. The Startup India Seed Fund Scheme was launched in which year?
A) 2016
B) 2019
C) 2021
D) 2022
Answer
C) 2021Q5. Maximum seed grant under SISFS per startup is:
A) ₹10 lakh
B) ₹20 lakh
C) ₹30 lakh
D) ₹50 lakh
Answer
D) ₹50 lakhQ6. Which organisation manages the Fund-of-Funds?
A) RBI
B) SIDBI
C) NABARD
D) SEBI
Answer
B) SIDBIQ7. A startup can avail income-tax holiday for how many years?
A) 1
B) 2
C) 3
D) 5
Answer
C) 3Q8. As on 31-03-2024, approximately how many DPIIT-recognised startups exist?
A) 50 k
B) 75 k
C) 1 lakh
D) 1.17 lakh
Answer
D) 1.17 lakhQ9. Which section of Income-Tax Act gives 3-year tax holiday to eligible startups?
A) 80C
B) 80-IAC
C) 54GB
D) 56
Answer
B) 80-IACQ10. Credit Guarantee Scheme for Startups (CGSS) provides collateral-free debt up to:
A) ₹1 cr
B) ₹2 cr
C) ₹5 cr
D) ₹10 cr
Answer
C) ₹5 crQ11. Who chairs the Atal Innovation Mission?
A) Finance Minister
B) NITI Aayog Vice-Chairman
C) DPIIT Secretary
D) PM
Answer
B) NITI Aayog Vice-ChairmanQ12. Startup India Global Venture Capital Summit 2019 was held in:
A) Bengaluru
B) Mumbai
C) Goa
D) New Delhi
Answer
C) GoaQ13. What is the turnover limit (in ₹ crore) for any financial year to remain eligible as startup?
A) 50
B) 75
C) 100
D) 250
Answer
C) 100Q14. Patent filing fee rebate for recognised startups is:
A) 20 %
B) 50 %
C) 80 %
D) 100 %
Answer
C) 80 %Q15. Which state topped the latest Startup India States Ranking?
A) Maharashtra
B) Gujarat
C) Karnataka
D) Tamil Nadu
Answer
B) GujaratQ16. Startup India Hub functions under:
A) SIDBI
B) Invest India
C) NITI Aayog
D) SEBI
Answer
B) Invest IndiaQ17. The Inter-Ministerial Board (IMB) for Startup India is headed by:
A) DPIIT Secretary
B) Revenue Secretary
C) Finance Secretary
D) Commerce Secretary
BETA
