VOLUME: 09, Special Issue 04, (IC-SPIPS-2022), Paper id-IJIERM-IX-IV, May 2022 20
A DESCRIPTIVE STUDY ON THE SUCCESS OF STARTUP INDIA MISSION AND OPPORTUNITIES AVAILABLE FOR STARTUPS IN INDIA
Dr. Deepali Gupta
Assistant Professor, St. Paul Institute of Professional Studies, Indore
Abstract - Startup India is a flagship initiative of the Government of India, it was initiated with the intention to boost the Startup culture. Also, to build a solid and comprehensive ecosystem for innovation and entrepreneurship in India. Prime Minister Narendra Modi has launched STARTUP INDIA MISSION on 16th January, 2016 at Vigyan Bhavan auditorium in New Delhi. Several programs and schemes were rolled out. The objective of the scheme to support entrepreneurs. The main aim was to transform India into a country of job creators instead of job seekers.
The action plan of Startup India mission is managed by a dedicated team named, Department for Industrial Policy and Promotion (DPIIT).
The present paper will talk about the analysis of the successfulness of various schemes, platforms and programs launched under Startup India mission during the past 5 years like Startup India Hub, Patent Benefits, Tax Benefits, Fund of Funds For Startups, Learning & Development Module, Atal Innovation Mission Technology Business Incubators, Startup India Yatra, Nidhi (National Initiative for Development And Harnessing Innovations) etc. Researcher also suggests about the opportunities available for Startup in India.
Keywords: Startup, Entrepreneurship, Government of India, Schemes and Programs.
“I see startups, technology and innovation as exciting and effective instruments for India‟s transformation.”
-Shri Narendra Modi Prime Minister of India With the introduction of Prime Minister Narendra Modi's ambitious Startup India mission on January 16th at New Delhi's Vigyan Bhavan auditorium, it appears that India is on its way to becoming the next big Startup nation.
Startup India is the government of India's flagship initiative which is aimed at catalysing startup culture.
It is aimed to create an ecosystem for innovation and entrepreneurship in India. The main purpose of this mission is to change India into a country of job creators rather than job seekers.
Department for Promotion of Industry and Internal Trade (DPIIT) –
The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the year 1995 and was reconstituted in the year 2000 with the merger of the Department of Industrial Development.
In Startup India mission, Department for Promotion of Industry & Internal Trade (DPIIT) acts as the nodal Department for coordinating the efforts of all Central Government Departments and State Governments for carrying this plan forward.
The Success Journey of Startup India Mission- Startup India hub -
To resolve the queries and give handholding support to Startups, Startup India hub was operationalised. It has started its working from 1st April, 2016. The hub has handled more than 1,14,000 queries. The queries have been handled through telephone, email and Twitter. Any query relating to seek clarifications pertaining to Certificate of Recognition as a
“Startup”, Certificate of Eligibility to avail tax benefits, seeking information on incubators or funding, can be handled by this Hub. The hub has guided more than 660 Startups about incubation, funding support, on business plans, pitching support, etc. An online platform called “Startup India Online Hub” was also launched where all the stakeholders of the Startup ecosystem can collaborate and synergize their efforts.More than 2.7 lakh users have registered at this platform.
VOLUME: 09, Special Issue 04, (IC-SPIPS-2022), Paper id-IJIERM-IX-IV, May 2022 21 Learning &Development Module-
An interactive online learning and development module was launched by startup India. The aim of the module is to educate Startups and wishful entrepreneurs. More than 2,30,000 applicants have registered for the module, out of which more than 10,000 applicants have completed 100% of the course successfully.
Number of Jobs created -
The below table provides the data of past 5 years regarding the number of startups started under the startup India Mission and the number of Jobs created -
Year Number of Startups
( started under Startup Mission) Number of Jobs created
2016 504 5000
2017 5425 49000
2018 8947 96000
2019 11701 150000
2020 14740 170000
Establishment of tinkering labs-
Total 5441 schools have been selected for establishing Tinkering Labs by NITI Aayog. per the Startup India Action Plan, Out of the selected, 2071 Tinkering Labs have been granted aid of Rs. 12 Lakh each.
National Startup Awards-
To recognize and reward startups that are creating broader social impact, DPIIT has instituted the National Startup Awards.„IT Services‟, „Healthcare & Lifesciences‟,
„Education‟, „Professional & Commercial Services‟ and „Agriculture‟ are the 5 sectors which have been seen as the most startup growth.
Key Highlights from JAN 2016 to DEC 2020
Total 41,317 startups recognized by DPIIT
Total 4.7 Lac jobs reported by 39,000+ startups‟
87% increase in IPR (Intellectual Property Rights) registrations over a period of 3 years (2017 to 2020)
Rs 4,509 Crore of investments made in 384 startups through the Fund of Funds scheme
590 + districts with at least one recognized startup
44 % of the recognised startups have at least one woman director
30 States and UTs have a dedicated startup policy
319 eligible startups have been granted exemption under 80-IAC of the Income Tax Act
53,226 orders received by startups with a value of over Rs 2,279 Crores through GeM (Government e-Marketplace) portal
504
5425 8947 1170114740
0 5000 10000 15000 20000
2016 2017 2018 2019 2020
Number of Startups started During 5 Years
5000 49000
96000
150000170000
0 50000 100000 150000 200000
2016 2017 2018 2019 2020 Number of Jobs created
during past 5 years
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2.8 Lac users enrolled in Startup India L&D ( learning and development) program
8 EICs (Entrepreneurship Innovation Centres) have been approved for scale-up grant of INR 10 Cr.
22 institutes have been approved for establishing AICs (Atal Incubation Centres).
The Research Park at IIT Gandhinagar is being set up by DST (Department of Science and Technology) which has disbursed an initial instalment of INR 40 Cr.
IIT Kharagpur has received INR 74 Cr.
IIT Bombay has received INR 34 Cr. From MHRD (Ministry of Human Resource Development).
INR 475 crore has been earmarked under UAY (Ucchatar Avishkar Yojana) for 2016-18. INR 285 Cr has been sanctioned and 85 research proposals from IITs received INR 162.4 Cr under the scheme.
The Fund of Funds scheme which was launched in 2016 with an overlay of INR 10,000 crore has already impacted over 300 startups in the country.
Source: 5 Years Achievement Report, www.startupindia.gov.in Opportunities available for Startup in India -
The Indian economy is currently experiencing a massive transformation, with new strategies focusing on sustainability. Startups are becoming more important in the Indian economy. The new age India today is ready to walk on the path FOLLOW YOUR HEARTS.
Moreover The atmosphere in India for beginning your own business has improved. With so many opportunities for business in India, more and more people are willing to take the risk.
India is preparing to abandon traditional professional paths. A lot of talent is gravitating toward the Indian startup space.
The government of India offers a variety of incentives to encourage investors to start their own businesses –
1. Patent benefits
For assistance in filing Intellectual Property applications, a panel of 427 facilitators for patent and design applications and 670 facilitators for trademark applications has been formed. This would also help in to fast track the process of patent filing and acquisition process.
On behalf of Startups, DIPP bears the facilitation cost and also gives rebate in filing application fee.
2. Relaxednorms of procurement
To provide a favourable environment for startup growth and to provide an equal platform for all startups, relaxed norms of public procurement for micro and small enterprises have been provisioned in the Procurement Policy of Ministry of Micro, Small and Medium Enterprises (MSME).
Department of Expenditure has also notified that all Central Ministries/
Departments shall relax condition of prior experience and prior turnover. The relaxation has been extended to Central Public Sector Undertakings by the Department of Public Enterprises.
3. Tax benefits
Various tax exemptions and deductions have been implemented for the benefit of startups, such as the introduction of Section 54 EE, amendment of Section 54 GB, and removal of the Angel Tax.
4. Fund of funds for startups (ffs)
SIDBI has launched a 'fund of funds' of INR 10,000 crores to encourage innovation-driven startups. By 2025, the corpus will be distributed across two Finance Commission cycles.
5. Establishmentof incubators
The Atal Innovation Mission is establishing new incubation centres across India. Startups in their early stages of development would benefit from the incubators' facilities and help.
VOLUME: 09, Special Issue 04, (IC-SPIPS-2022), Paper id-IJIERM-IX-IV, May 2022 23 6. Research parks
The goal of establishing Research Parks is to encourage successful innovation through incubation and collaborative R&D activities between academics and industry. The Startup India project is establishing eight research parks. IIT Kharagpur's Research Park is now under construction, with a budget of INR 100 crore set aside. DST has sanctioned INR 90 crore for the Research Park at IIT Gandhinagar and has disbursed an initial instalment of INR 40 crore. The remaining five are being built at a budget of INR 375 crore by the Ministry of Human Resource Development (MHRD) at IIT Guwahati, IIT Hyderabad, IIT Kanpur, IIT Delhi, and IISC Bangalore. In addition, IIT Bombay is building a new Research Park, for which INR 34 crore has been set aside.
7. Ucchatar Aavishkar Yojana (UAY)
The goal of UAY is to encourage students to conduct industry and outcome-oriented research projects. INR 475 crore has been reserved under UAY.
8. Startup India Seed Fund Scheme Launch
DPIIT has established the Startup India Seed Fund Scheme (SISFS) with a budget of INR 945 crore to assist businesses. This would allow these startups to grow to the point where they could raise funds from angel investors or venture capitalists, or apply for loans from commercial banks.
Conclusion
The support provided by various government schemes, incubators, and accelerators allows entrepreneurs to develop their products. Many benefits are being provided to entrepreneurs, such as a simple process, cost savings, easy access to funds, tax breaks, R&D opportunities, and no time-consuming compliances.
The success of the startup mission can be plainly observed in the fact that it has CREATED VARIOUS jobs, many new startups have been recognised by DPIIT, the huge investment made through the fund of fund scheme, many startups have been enrolled in the Learning & Development program.
It's safe to assume that the startup culture is booming and won't be going away anytime soon, based on the amazing success of the Startup Mission.
REFERENCES
1. https://www.entrepreneur.com/article/270330 2. https://www.startupindia.gov.in/content/sih/en/
3. https://www.startupindia.gov.in/content/dam/invest- india/Templates/public/Status_report_on_Startup_India.pdf
4. https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/Newsletter%20April- June_13072021_vf%20web.pdf
5. https://cleartax.in/s/11-benefits-to-startups-by-indian
government#:~:text=Startup%20India%20initiative%20intends%20to,given%20to%20entrepreneurs%20esta blishing%20startups
6. https://www.entrepreneur.com/article/27033
