The Indian Government recently unveiled an Action Plan for Startup India, setting the foundation for government support, schemes, and incentives aimed at building a thriving startup ecosystem in the country. The programs that have been established to support startups are detailed below.
Startup India Action Plan
The main initiative to support start-ups is the Startup India Action Plan, which consists of 19 action items across several areas. These include “Simplification and handholding”, “Funding support and incentives”, and “Industry-academia partnership and incubation”.
Fund of Funds for Startups (FFS) Scheme
One of the funding supports offered is the Fund of Funds for Startups (FFS) Scheme. Managed by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Small Industries Development Bank of India (SIDBI), this scheme helps meet the capital requirements of startups at different stages such as early, seed, and growth stage.
Credit Guarantee Scheme for Startups (CGSS)
The CGSS offers credit guarantees for loans given to DPIIT-recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and Venture Debt Funds (VDFs).
Ease of Procurement: Government e-Marketplace (GeM) Startup Runway
This platform provides startups with a dedicated corner to offer products and services directly to the Government.
Support for Intellectual Property Protection: The Start-ups Intellectual Property Protection (SIPP) Scheme
SIPP facilitates startups to apply for patents, designs, and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees.
Self-Certification under Labour and Environmental laws
Startups can self-certify their compliance under nine Labour and three Environment laws for a period of 3 to 5 years from their date of incorporation.
Income Tax Exemption for 3 years
Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
International Market Access to Indian Startups
Startup India has built bridges with over 15 countries, providing a soft-landing platform for startups from these partner nations and aiding in promoting cross collaboration.
Faster Exit for Startups
Startups have been notified as ‘fast track firms’ allowing them to close operations within 90 days as opposed to the 180 days for other companies.
Startup India Hub
Launched in 2017, this is an online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other.
National Startup Advisory Council
This council was set up in January 2020 to advise the Government on measures needed to build a strong ecosystem for nurturing innovation and startups in the country.
Startup India Seed Fund Scheme (SISFS)
SISFS aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
National Startup Awards (NSA) and States’ Startup Ranking Framework (SRF)
The NSA recognizes outstanding startups and ecosystem enablers. The SRF is an initiative to harness the strength of competitive federalism and create a flourishing startup ecosystem in the country.
TIDE 2.0 Scheme
Initiated by Ministry of Electronics and Information Technology (MeitY) in 2019, this scheme promotes tech entrepreneurship through financial and technical support to incubators supporting ICT startups using emerging technologies such as IoT, AI, Blockchain, Robotics etc.
SAMRIDH Scheme
Initiated by MeitY, this scheme supports existing and upcoming Accelerators to further select and accelerate potential software product-based startups to scale.
Biotechnology Industry Research Assistance Council (BIRAC)
An industry-academia interface agency of the Department of Biotechnology, Ministry of Science & Technology, BIRAC supports biotech startups in all biotech sectors including clean energy and emerging technologies.
