Govt gives recognition to 19,351 Startups yet, max in Maharashtra

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Fund of Rs. 10,000 crore reserves to promote Startups in all manner

Start-up India initiative launched on 16th January 2016, consists of 19 Action Points that act as a guiding document for the initiative. Since its inception, 19,351 Startups across the country have been recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as on 24.06.2019. Union Minister of Commerce and Industry, Piyush Goyal, told in the Rajya Sabha today.

He informed that Government of India has established Fund of Funds for Startups (FFS) with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS.

The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. SIDBI has committed Rs 3123.20 crore to 49 SEBI registered Alternative Investment Funds (AIFs). These funds have raised a corpus fund of INR 27,478 crore. INR 483.46 crore have been drawn from Fund of Funds for Startups. Further, the AIFs have invested a total of Rs. 1,625.73 crore into 247 startups.

A total of 26 states have notified and operational startup policies. Highest number of Start-up recognized in Maharashtra (3661), followed by Karnataka (2847) and Delhi (2552). Madhya Pradesh is in 12th position with 525 recognition.

Here are some salient features of Startup India action plan:

Compliance Regime based on Self-Certification with an objective to reduce the regulatory burden on Startups

Startup India Hub with an objective to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.

Mobile App and Portal with an objective to serve as single platform for Startups to interact with Government and Regulatory Institutions

Legal Support and Fast-tracking Patent Examination at Lower Costs

Relaxed Norms of Public Procurement for Startups

Faster Exit for Startups with an objective to make it easier for Startups to wind up operations.

Providing Funding Support through Fund of Funds

Credit Guarantee fund for Startups, Tax Exemptions on Capital Gains, startups for 3 Years,

Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform

Launch of Atal Innovation Mission (AIM) with an objective to serve as a platform for promotion of world-class Innovation

Setting up of 7 New Research Parks Model on the Research Park Setup at IIT Madras to propel successful innovation through incubation and joint R&D efforts between academia and Industry

Promoting Startups in the Biotechnology Sector with an objective to foster and facilitate bio-entrepreneurship.

Source-PIB