New Delhi: Startup India Initiative was launched on January 16, 2016. The Startup India Action Plan with 19 action points intends to build a strong eco-system for nurturing innovation and startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Action Plan is divided across the following areas:
- Simplification and Handholding
- Funding Support and Incentives
- Industry-Academia Partnership and Incubation
The incentives being provided to startups under Startup India initiative to overcome their initial hurdles are given below:
- Self-Certification under 6 Labour Laws & 3 Environmental Laws
- Relaxations in Public Procurement Norms
- Faster exit under the Bankruptcy Code
- Rebates on Patent & Trademark filing fees, support from facilitators and expedited examination of Patent application
- Income Tax exemption under Section 80 IAC of Income Tax Act
- Exemption from Income Tax on investments received above fair market value under clause (ii) of the proviso to clause (viib) of sub-section (2) of section 56 of the Income Tax Act
- Funding support under the Fund of Funds for startups
- Guidance and facilitation support from Startup India Hub
The details of startups founded all over the country is not compiled, however, various initiatives undertaken under Startup India initiative have resulted in an increase in recognition of Startups by the Department for Promotion of Industry and Internal Trade (DPIIT) since the launch of the initiative.
During the fiscal year 2016-2017, 746 startups were recognised by the DPIIT. That number has increased to 7,141 in the fiscal year 2019-2020 (till November 5, 2019).
As of 2019, Maharashtra has the highest number of recognised startups (1,778), followed by Karnataka (1374) and Delhi (1152).
The data on the number of startups which are still functional for three years or have failed in three years of their launch is not compiled. Product-based data of the recognized startups by DPIIT is not compiled.
This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha today.
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