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HomeStartupsA Look Again At Modi's ‘Startup India, Standup India’ Imaginative and prescient

A Look Again At Modi’s ‘Startup India, Standup India’ Imaginative and prescient


Introduced on August 15, 2015, Startup India has been the lynchpin round which India’s digital financial system has been constructed prior to now 5 years

Since its formal launch in 2016, Startup India has been backed by slew of coverage reforms, and bilateral authorities collaborations to extend the attain of startups

Right here’s taking a inventory of the objectives, milestones and challenges in 5 years of Startup India

5 years in the past, on 15 August 2015, Prime Minister Narendra Modi coined considered one of his many well-liked slogans — ‘Startup India, Standup India’. The phrases grew to become the pillar for considered one of India’s most profitable government-backed tasks — Startup India.

Launched in January 2016 and enforced with a slew of coverage reforms akin to funding assist, bilateral authorities collaborations with varied international locations, and constant messaging of hope and pleasure in Indian tech, Startup India attracted entrepreneurs from each nook of India. So what has been the influence of those initiatives prior to now 5 years? 

The obvious influence of the Startup India programme is seen within the increase within the variety of startups over the previous 5 years. Submit the launch of Startup India, 26 state governments launched their startup insurance policies and general 30 states have launched startup insurance policies over time, some predating Startup India. These insurance policies together with the institution of the state-sponsored incubators have been a key drivers of the startup ecosystem all through India, notably in Tier 2 and Tier Three cities. Additional, 38 state-supported Atal incubation centres have been established in India since 2016. 

“Before the policy launch, there were hardly three to four companies in Uttarakhand. But since the state government started offering seed capital to startups, startups became a viable opportunity for many innovators in the state,” mentioned Rajat Jain, founding father of Sunfox Applied sciences, which is predicated in Uttarakhand and was based in 2016. 

Between 2016 and August 2020, Startup India programme says it has recognised over 34.8K startups. Amongst these, 8.3K startups acquired mental property rights (IPR) charge advantages, whereas over 2.6 Lakh individuals enrolled within the entrepreneurship-focused studying programs provided by upGrad and Startup India. Additional, over $1 Mn price advantages got to five.5K startups as a part of over 150 startup innovation programmes and challenges organised by Startup India. 

Among the many many guarantees underneath Startup India, the federal government pledged to arrange a fund of funds for startups, pooling collectively funds from varied overseas institutional buyers in addition to various funding funds (AIF). Until date, over INR 3123 Cr has been dedicated by the federal government to 47 enterprise capital companies and INR 3476 Cr has already been invested in 323 startups from the fund of funds corpus managed by Startup India by way of Make investments India. 

Startup India additionally claims to have enabled world market entry and information for Indian startups by way of bilateral authorities collaborations with Russia, South Korea, Portugal, Japan, Netherlands, United Kingdom, Sweden, Finland, Israel, and Singapore. Also referred to as a Startup Bridge, these collaborations allow startups, buyers, incubators, accelerators and aspiring entrepreneurs of each international locations to attach with each other by offering them with sources to develop and turn out to be world entities. 

Startup India Snapshot 


DPIIT Recognised Startups 


Atal Incubation Centres 


State Startup Insurance policies 


Startups acquired IPR charge advantages 


Startup innovation programmes


Startup investments from fund of funds 

The Insurance policies That Modified The Sport For Startups In 2019 

One of many pivotal adjustments within the startup ecosystem in latest occasions was the extra inclusive definition of “startups” from the authorized and taxation standpoint. In February 2019, the Division for Promotion of Business and Inside Commerce (DPIIT) in a gazette notification, widened the definition of startups underneath ‘Startup India, Standup India’ scheme. Within the new definition, an entity will likely be thought-about a startup,  

  1. Until as much as 10 years from its incorporation date.
  2. If an entity’s turnover for any of the monetary years since its incorporation hasn’t exceeded INR 100 Cr.

As compared, the sooner definition of startups as given in DPIIT’s April 2018 notification solely thought-about entities as startups as much as a interval of seven years from the date of incorporation. Additional, the annual turnover was to not exceed INR 25 Cr in any of the monetary years since incorporation, however this has now been prolonged. Beneath the brand new definition too, startups are required to be working in the direction of innovation, improvement or enchancment of merchandise, or a scalable enterprise mannequin with a excessive potential of employment/wealth era.

Additional, the identical notification additionally envisioned to simplify the method for startups to get exemptions on investments underneath part 56(2)(viib) of Revenue Tax Act, 1961, popularly often called the angel tax.

The Angel Tax Query

Angel tax is an earnings tax levied on the funding acquired by unlisted startups by issuing shares at a value larger than the honest market worth. Through the years, many startups have raised issues over the classification of funding as earnings and funding. In August 2019, the finance minister exempted DPIIT-registered startups from the angel tax requirement. Nonetheless, these not registered proceed to return underneath its purview. 

In Feb 2020, India was ranked 63 amongst 190 international locations on ease of doing enterprise rankings by the World Financial institution, as in comparison with 142 rank of India in 2015. Based on the World Financial institution, the three important causes for this bounce in rating had been India’s diminished value of beginning a enterprise, higher entry to constructing permits and digital submission of paperwork for import and export audits.

India’s ‘Ease Of Doing Business’ Rating On The Rise 

Yr Rank
2015 142
2016 130
2017 130
2018 100
2019 77
2020 63

States Again The Central Imaginative and prescient

Just like different authorities initiatives, state governments are main companions for the Startup India programme. The implementation of state-level startup insurance policies has supported the insurance policies on the centre and whereas many startup insurance policies on the state-level have to be spruced up, the truth that states are focussing on startups in any respect is a significant optimistic. 

Some states akin to Kerala, Karnataka and Maharashtra have led from the entrance in relation to startup insurance policies, and others akin to Delhi have not too long ago revamped their startup coverage to be in keeping with the occasions. At occasions, the shortage of sync between the centre and state authorities has resulted in startups dropping out on funds or banks turning away startups. In such cases of delay and sophisticated procedures, startups have both trusted non-public incubators and funding our bodies or selected to construct sustainable bootstrapped companies. 

Distribution Of Startups Throughout India

States & UTs  Startups
Madhya Pradesh 3,374
Bihar 1,615
West Bengal  3,362
Jharkhand 1,037
Chhattisgarh 1,052
Odisha 1,320
Uttar Pradesh 9,541
Maharashtra 17,837
Karnataka 11,035
Telangana 4,936
Andhra Pradesh 1,875
Tamil Nadu  5,450
Kerala 3,110
Gujarat 6,108
Goa  386
Rajasthan 3,171
Haryana 4,627
Punjab 1,202
Uttarakhand 920
Himachal Pradesh 358
Jammu & Kashmir 520
Ladakh 8
Sikkim  26
Meghalaya 44
Assam 948
Tripura 97
Mizoram 24
Manipur 135
Nagaland 47
Arunachal Pradesh 43
Andaman & Nicobar Islands 99

Supply: Startup India

The position of Startup India in attracting these buyers to India can’t be underestimated. Even because the challenges of the startup ecosystem have intensified in the course of the pandemic, buyers have continued to indicate religion in some startups. Even so, well-funded startups and unicorns have introduced layoffs and furloughs. The following problem for Startup India and India’s startups will likely be to show their price as job creators. 

When the Indian authorities allotted an INR 20 Lakh Cr. to combat the Covid-19 financial recession, a major a part of this package deal was centered on supporting the impacted micro, small and medium enterprises (MSMEs) which additionally consists of many startups. The federal government mentioned it is going to be allocating over INR 3.7 Lakh Cr to bailout MSMEs. Nonetheless, the choice was met by a number of questions in regards to the effectiveness of the package deal, which might exclude many startups due to the eligibility standards

Whereas the federal government has completed a lot for bringing the Indian startup ecosystem to its present stage, the Covid-19 pandemic has come up as the true check of the energy of those official buildings. Will Startup India proceed to be the flagship programme of the Indian authorities, or will Make In India step as much as the limelight as the main focus turns to making India a significant exports hub?




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