Why in the News?

On January 16 (National Startup Day), 2025, India marks 9 successful years of Startup India, a flagship initiative that has revolutionized the entrepreneurial ecosystem in the country.

About the Startup India Initiative

Startup India is a flagship initiative launched by the Government of India on January 16, 2016, to create a robust ecosystem for nurturing startups and innovation.
It aims to drive economic growth and generate large-scale employment opportunities, with a focus on empowering entrepreneurs through innovation and regulatory support.
The PM first announced the initiative on August 15, 2015, during his Independence Day address at Red Fort, New Delhi.
The program aims to establish 75+ startup hubs across India and encourages entrepreneurship in Tier-2 and Tier-3 cities.
- A related scheme, Stand-Up India, was launched on April 5, 2016, to facilitate loans between ₹10 lakh to ₹1 crore for SCs, STs and women entrepreneurs to establish Greenfield enterprises.
The program emphasizes the 3 Cs—Capital, Courage, and Connections, which Prime Minister Modi identifies as essential for entrepreneurial success.
It seeks to eliminate restrictive policies, including those related to License Raj, foreign investment proposals, and land permissions, ensuring ease of doing business.

Definition of a Startup (as per DPIIT)

A startup must be registered as a private limited company, partnership firm, or limited liability partnership (LLP) in India.
The entity must not have completed 10 years since its incorporation.
Annual turnover should not exceed ₹100 crore in any financial year since incorporation.
The startup should focus on innovative products or services and demonstrate scalability, potential for wealth creation, or employment generation.
Entities formed through splitting or restructuring of existing businesses are not classified as startups.
Startup related terminologies analogously used in India:
- Unicorn: A startup valued at over $1 billion.
- Decacorn: A startup valued at over $10 billion.
- Hectocorn: A startup valued at over $100 billion.
- Soonicorn: A rapidly growing startup expected to become a unicorn soon.
- Mincorn: A startup valued at less than $1 billion.

Key Achievements of Startup India

India is the third-largest startup hub globally, following the United States and China.
DPIIT-recognized startups grew from 500 in 2016 to 1,59,157 by January 2025.
Women-led startups accounted for 73,151 entities as of October 2024, with 48% of startups having at least one woman director by December 2023.
Startups have generated 16.6 lakh direct jobs from 2016 to October 2024.
Over 50% of startups originated from Tier-2 and Tier-3 cities, including emerging hubs like Indore, Jaipur, and Ahmedabad.

Key Government Initiatives for Startups:

Startup India Seed Fund Scheme (SISFS), 2021: Provides financial assistance to early-stage startups for proof of concept, prototype development, product trials, market entry, and commercialization.
- Total allocated amount: ₹945 crore for startups over a four-year period.
Credit Guarantee Scheme for Startups (CGSS), 2022: Offers collateral-free loans to startups through Scheduled Commercial Banks, NBFCs, and SEBI-registered AIFs.
- Covers loans up to ₹10 crore for eligible startups.
Fund of Funds for Startups (FFS), 2016: Established with a ₹10,000 crore corpus to provide funding support to startups through SEBI-registered Venture Capital Funds.
- By 2024, ₹7,980 crore was committed to 99 Alternative Investment Funds (AIFs), benefiting over 800 startups.
BHASKAR (Bharat Startup Knowledge Access Registry), 2024: A centralized platform aimed at streamlining interactions within India’s entrepreneurial ecosystem.
- Fosters innovation, collaboration, and startup growth through knowledge-sharing and networking.
Startup Village Entrepreneurship Program (SVEP): A sub-component of the National Rural Livelihood Mission (NRLM), implemented by the Ministry of Rural Development.
- Supported 3,02,825 enterprises as of 2024, creating 6,26,848 jobs.
TIDE 2.0 (Technology Incubation and Development of Entrepreneurs): Focuses on supporting startups in emerging technologies like AI, IoT, and Blockchain.
- Established 51 incubators and supported 1,235 startups.
GENESIS (Gen-Next Support for Innovative Startups), 2024: Aims to boost startups in Tier-II and Tier-III cities.
- Total outlay: ₹490 crore over five years, targeting over 1,500 startups.
Atal Innovation Mission (AIM): Operates under NITI Aayog to foster innovation and entrepreneurship through the establishment of Atal Incubation Centers (AICs).
- Provides physical infrastructure and mentorship for startups to scale effectively.
Startup Mahakumbh: A flagship event organized to bring together startups, unicorns, investors, and industry leaders.
- First edition in 2019 saw over 500 participants; the fifth edition is scheduled for March 7-8, 2025, in New Delhi.

PYQ:

[2014] What does venture capital mean?

(a) A short-term capital provided to industries

(b) A long-term start-up capital provided to new entrepreneurs

(d) Funds provided for replacement and renovation of industries

[pib] 9 Years of Startup India