Startup India: An Initiative by the Government for the Young Entrepreneurs

Damini Bhandary Damini Bhandary Anik Banerjee Anik Banerjee
Jan 25, 2022 5 min read
Startup India: An Initiative by the Government for the Young Entrepreneurs

The time we are living in, startups are making the loudest noise all over the world. People are being brave and are keen on transforming their ideas into reality. Almost every country is experiencing a rise of startups across industries; young entrepreneurs are striving hard to fulfill their vision without any fear. This is not only about the growth of an individual but it is also contributing to the growth of the countries.

Just like all other countries, India is also experiencing the same rise. Not only that, it has become the biggest hub of Startups in the world. In this article, we will talk about how the initiative by the Government of India to create an ecosystem where Startups can flourish and how in the last six years, this initiative has been able to help young entrepreneurs and their startups. So, without any further ado, let’s get started.

β€œWhat do you need to start a business? Three simple things: know your product better than anyone. Know your customer, and have a burning desire to succeed.”

–Dave Thomas

What is Startup India?
What is a Startup as per DIPP?
Benefits Provided by Startup India
Current Startup Scenario in India
Startup India: The Innovation Week
FAQ

What is Startup India?

Startup India is an initiative taken by the Indian Government; it was first announced in the year 2015 by the Prime Minister of India, Narendra Modi. The campaign was launched on January 16th of 2016.

Basically, the main aim of this campaign is to provide an ecosystem where the Government will empower all the new Startup ventures and of course to encourage the innovation culture. Overall, this initiative is also in a role to stimulate entrepreneurship, economic growth, technological growth, innovation growth, and the employment of the country.

What is a Startup as per DIPP?

Though most of us more or less know what a startup is, mainly because today we are almost surrounded by startups, the Department for Promotion of Industry and Internal Trade (DIPP) has defined the startup companies, as per the government of India. By the term "startup", DIPP has mentioned the companies that are within 10 years from the date when they were incorporated/registered. Furthermore, the turnover of the company shall not be exceeding the 100 crore mark for any of the financial years since its incorporation/registration. Besides, it is obvious that the startup should have its headquarters in India to be recognized as an Indian startup. Along with that, DIPP also recognizes the startups that are registered with either of the following legal frameworks:

  • The registration of the company should be under the Companies Act of 2013; or,
  • Section 59 of the Partnership Act of 1932, as a partnership firm; or,
  • Limited Liability Partnership Act, 2002, as a limited liability partnership.

Benefits Provided by Startup India

Some of the benefits that Startup India provides to the young entrepreneurs of the country are:

  • One has to register through a mobile app or a website for their startup. It is quite easy and anyone who is interested can fill up a form and the whole process is online.
  • While filing the patents, startups will get an 80% reduction on that cost. Plus, the Government will deal with the facilitator fees and the startup will only pay the statutory fees.
  • The Government of India as per the initiative has created a β‚Ή10,000 Crore fund and it will be invested in the startups as their venture capitals.
  • Startups will be free from paying three years of income tax if they get a certificate from Inter-Ministerial Board.
  • Research parks to be set up and it will give out several facilities in the R&D sector.
  • A number of compliances are provided to the Startups that will ensure saving of time and money.
  • People who are investing in startups will receive an exemption from tax, this will help in attracting more investors for the startups in the country.
  • The startups can choose from the investors, who want to get funds for their business.
  • One can close their startup within 90 days from the date of application of closing it up.
  • Every year nationally and internationally the Government has decided to host two fests where the startups will be able to interact with each other.

Current Startup Scenario in India

In the last few years, hundreds of Startups have been founded in the country and it is just increasing with time. Some of them have already made it to the list of Unicorns in India. For those who are not aware of what Unicorn is, basically, the term means a startup that has a valuation of $1 billion.

Top Indian Startup Unicorns in 2021

Right now, the country has over 83 Unicorns and has become the third-largest Unicorn hub in the world. The industries with the most numbers of Unicorns in the country are Fintech, SaaS, and e-commerce.

Bengaluru has emerged to be the city with the most number of Unicorns. Not only that, India has four Decacorns as well. Decacorns are those startups that have a value of $10 billion and above.

Startup India: The Innovation Week

The year 2022 is even bigger than the last year for startups in terms of the rising number of startups and unicorns. The day before the 6thanniversary of Startup India, on the ongoing celebration of innovation week, the Prime Minister of India, Narendra Modi has interacted with over 150 startups from different sectors through video conferencing. He announced that the 16th of January will be observed as the National Startup Day in the country.

The PM also said that the Startups are going to be the backbone of the country. He firmly advised the youth to indulge in the world of startup and β€œinnovate for India and from India” and to also focus on the semi-urban and rural part of the country with their startups. Apart from that, he firmly believes that when India will complete its 100 years of independence, Startups will be playing a major role in the country.

Conclusion

It has been over 6 years since the StartupIndia initiative was launched many have benefited from it and it will continue encouraging the startup world of India. Young entrepreneurs have started dreaming fearlessly and are continuously striving to make those dreams a reality. An initiative like Startup India is just focusing on pushing those dreams to the peak of success.

FAQ

Who are eligible for Startup India?

Any business that has a turnover of not more than β‚Ή100 Crore is eligible for Startup India.

What are the top 10 startups in India?

Unacademy, Udaan, CRED, upGrad, Razorpay, Meesho, Skyroot Aerospace, boAt, Urban Company, AgniKul Cosmos are top startups of India.

What is the main aim of startup India?

Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.

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