Parul
About 58 per cent of the startups recognised by the government are confined to only five states of the country. A total of 84,012 startups have been recognized by the government, as on November 30, 2022.
However, the latest government data showed that nearly 60 per cent of the total government-recognised startups are from states including Maharashtra, Karnataka, Delhi, Gujarat and Uttar Pradesh.
While Maharashtra tops the list with 15,571 government-recognised startups, states like Karnataka, Delhi, Uttar Pradesh and Gujarat have 9,904 respectively; 9,588; 7,719, and 5,877 such institutions.
The government launched the Startup India initiative on January 16, 2016, to create a strong ecosystem for innovation and nurture startups in the country.
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To meet the objectives of the initiative, the government unveiled an action plan Startup India which laid the foundation for government support, schemes and incentives envisaged creating a vibrant startup ecosystem in the country.
The action plan includes several items spanning areas such as “facilitation and handholding”, “funding support and incentives” and “industry-academia partnership and incubation”.
Under the Startup India initiative, to provide capital at different stages of the business cycle of start-ups, the Government has implemented the Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS). Have done, Both schemes are implemented on an India basis.
The Fund of Funds for Startups scheme was approved and set up in June 2016 with a corpus of Rs 10,000 crore, to be contributed in the 14th and 15th Finance Commission cycles depending on the progress of implementation, to enable Startups Much needed boost can be given. Enables access to the Indian start-up ecosystem and domestic capital.
Under the FFS, the scheme does not invest directly in startups, instead, it provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, that invest in growing Indian startups through equity. Invests money and equity-linked instruments in start-ups.
Small Industries Development Bank of India (SIDBI) has been mandated to operate this fund through the selection of suitable daughter funds and overseeing the disbursement of committed capital. AIFs supported under FFS are required to invest at least 2x the amount committed under FFS in start-ups.
According to the commerce ministry, till November 30, 2022, a commitment of Rs 7,527.95 crore has been made to AIF in the FFS of the Rs 10,000 crore fund. In addition, Start-up India Seed Fund Scheme has been approved for 4 years from 2021-22.
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The objective of the scheme is to provide financial support to start-ups for proof of concept, prototype development, product testing, market entry and commercialization.
By November 30, 2022, in SISFS, to the corpus of Rs. 945 crores 455.25 crores has been sanctioned to 126 incubators, of which Rs. 186.15 crores has been distributed.
Under the Startup India initiative, entities are recognized as start-ups by the Department for Promotion of Industry and Internal Trade (DPIIT).
Government to provide credit guarantee for loans extended by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) to DPIIT recognized Start-ups under SEBI registered Credit for Startups Guarantee scheme has also been established. Alternative Investment Fund.
