Introduction
With the recent development, focusing on NavIC Grand Challenge’s launch by the Minister of Commerce and Industry during the National Startup Advisory Council (NSAC)’s meeting, the spotlight has been cast on India’s efforts to advance its digital independence. This move comes as part of a broader initiative to encourage the adoption of NavIC as a geo-positioning solution.
About NSAC
The Department for the Promotion of Industry and Internal Trade (DPIIT) established the NSAC. The council’s role is to offer recommendations on establishing a robust ecosystem that spurs innovation and startup growth across the country, leading to sustainable economic development and large-scale job creation.
Composition of the Council
The Chairman of the council is the Minister for Commerce & Industry while the Joint Secretary of the Department for Promotion of Industry and Internal Trade serves as the Convener. Ex-officio members include nominees from concerned Ministries/Departments/Organisations, not below the rank of Joint Secretary. Non-official members are nominated by the Central Government and include successful startup founders, veterans who have scaled companies in India, and people representing investors’ interests in startups. The tenure for non-official members is two years.
Functions of NSAC
The NSAC’s duties include suggesting ways to nurture an innovation culture among citizens, promoting innovation across all sectors, fostering public organizations’ capacity to incorporate innovation for improved public service delivery, and promoting intellectual property rights. It is also tasked with recommending measures to simplify business operations and promote capital access for startups.
The Status of Start-ups in India
Currently, India boasts the third largest start-up ecosystem globally, with over 15,000 new startups established in 2020, a significant increase from 5,000 in 2010. Several factors contribute to this burgeoning ecosystem, including smartphone and internet penetration, cloud computing, application programming interfaces (APIs), and a robust national payments stack. Despite the Covid-19 pandemic, India registered a record number of Unicorn startups in 2021 surpassing the total achieved between 2011 and 2020. However, obstacles like building and scaling an Indian Startup, diversity and the digital divide, and a complex regulatory environment still hinder realizing the full potential of startups in India.
Other Related Initiatives
Several other initiatives are complementing the efforts to support the startup ecosystem in India. These include the Ranking of States on Support to Startup Ecosystems, which serves as an advanced evaluation tool to encourage state and UTs in building their startup ecosystems. The first-ever meeting of the Shanghai Cooperation Organisation (SCO) Startup Forum was held in October 2020 to collectively enhance startup ecosystems. Similarly, the ‘Prarambh’ Summit aims to foster new ideas, innovation, and invention among startups and young individuals from across the globe.
Startup India Seed Fund Scheme and Fisheries Startup Grand Challenge
The Startup India Seed Fund Scheme seeks to offer financial help to startups for proof of concept, prototype development, product trials, market entry, and commercialization. In collaboration with Startup India, the Ministry of Commerce and Industry launched the Fisheries Startup Grand Challenge under the Department of Fisheries, Ministry of Fisheries, Animal Husbandry & Dairying.
National Startup Awards 2021
Designed to acknowledge and reward exceptional startups and ecosystem enablers, the National Startup Awards 2021 aims to highlight innovative products or solutions that have high employment generation or wealth creation potential, demonstrating measurable social impact.