Note4Students
From UPSC perspective, the following things are important :
Prelims level : Start-up India scheme
Mains level : Startup ecosystem in India
- Maharashtra, Karnataka, and Delhi have seen the highest number of start-ups recognised under the government’s flagship Start-Up India Scheme in the period from 2016 to 2019.
- These three states also attracted the highest investments from Alternative Investment Funds (AIFs) in start-ups.
About Start-Up India Scheme
- Startup India Scheme is an initiative of the Indian government, the primary objective of which is the promotion of startups, generation of employment, and wealth creation.
- It was launched on the 16th of January, 2016.
- A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than ₹100 crore (US$14 million).
- The action plan of this initiative is based on the following three pillars:
- Simplification and Handholding
- Funding Support and Incentives
- Industry-Academia Partnership and Incubation
- An additional area of focus is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances.
- It was organized by The Department for promotion of industry and internal trade (DPI&IT).
Back2Basics
Alternative Investment Funds (AIFs)
- An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash.
- Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, lack of regulation, and degree of risk.
- Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts.
- Real estate is also often classified as an alternative investment.