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Startup India
Government initiative to promote startups in India From Wikipedia, the free encyclopedia
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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]
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Objectives
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
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
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 initiative 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
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]
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Eligibility criteria
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
Achievements
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
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]
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Future initiatives
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]
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See also
References
External links
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