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India celebrated its nine-year journey of Startup India on 16th January 2025.

About Startup India

It was launched in 2016 to promote innovation and encourage startup growth across the country.

As of January 15, 2025, the Department for Promotion of Industry and Internal Trade (DPIIT) recognised over 1.59 lakh startups, making India the world's third-largest startup ecosystem.

Major startup hubs such as Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have driven the transformation, while smaller cities have also contributed to the nation's entrepreneurial momentum.

Startups in fintech, edtech, health-tech, and e-commerce have overcome local challenges and achieved global success. Companies such as Zomato, Nykaa, and Ola represent India's shift from job seekers to job creators, resulting in economic growth. 

Key Milestones of Startup India

As of 15th January 2025, there are 1,59,157 DPIIT-recognised startups, up from around 500 in 2016.

As of 31st October 2024, 73,151 startups in India have at least one female director, indicating a growing trend of female entrepreneurship there.

From 2016 to October 31, 2024, recognised startups created over 16.6 lakh direct jobs, making a significant contribution to job creation. 

Key Features of the Startup India Initiative

• Ease of Doing Business: Simplified compliance, self-certification, and single-window clearances streamline processes for startups.
• Tax Benefits: Eligible startups enjoy tax exemptions for three consecutive financial years.
• Funding Support: The Rs10,000 crore Fund of Funds for Startups (FFS) supports early stage funding.
• Sector-Specific Policies: Focused policies for sectors like biotechnology, agriculture, and renewable energy promote targeted growth.

Industry-wise Jobs Created by Startups

As of October 31, 2024, DPIIT-recognized startups have created over 16.6 lakh direct jobs in various sectors. IT Services is the leading industry with 2.04 lakh jobs, followed by Healthcare & Lifesciences (1.47 lakh) and Professional & Commercial Services (94,000). 

Schemes Implemented Under Startup India

Startup India Seed Fund Scheme (SISFS)  

It was launched for a four-year period starting from 2021-22 with a corpus of ₹945 crore, the scheme supports startups in areas like proof of concept, prototype development, product trials, market entry, and commercialisation.

The scheme is managed by the Experts Advisory Committee (EAC), which evaluates and selects incubators for fund allocation.

As of October 31, 2024, the EAC has approved 213 incubators, which have in turn selected 2,490 startups for a total approved funding of Rs 454.04crore.

Credit Guarantee Scheme for Startups (CGSS)

The scheme offers credit guarantees for loans provided to DPIIT recognised startups by Scheduled Commercial Banks, NBFCs, and Venture Debt Funds under SEBI-registered Alternative Investment Funds.

It is implemented by the National Credit Guarantee Trustee Company Limited (NCGTC), it aims to provide a credit guarantee upto a specified limit to eligible startups.

Under this scheme, ₹555.24 crore in loans were guaranteed to235 startups, including ₹24.60 crore to 18 women-led startups as of October 31, 2024.

Fund of Funds for Startups (FFS) Scheme

Introduced inJune 2016 with a corpus of Rs 10,000 crore, the Fund of Funds for Startups (FFS) aims to enhance access to domestic capital for Indian startups and boost the entrepreneurial ecosystem.

The scheme is managed by SIDBI, does not invest directly in startups but provides funding to SEBI-registered Alternative Investment Funds (AIFs), which further invest in startups through equity and equity-linked instruments.

By 2024, ₹11,148 crore was committed, catalyzing investments of ₹21,221.36 crore in 1,165 startups.

BHASKAR: Empowering India's Startup Ecosystem

The Department for Promotion of Industry and Internal Trade (DPIIT) has launched the BHASKAR platform in September 2024 as part of the Startup India program to centralize and simplify interactions within the entrepreneurial ecosystem.

Key Features of BHASKAR are:

• Connects startups, investors, mentors, and stakeholders for effective collaboration.
• Provides quick access to essential tools and knowledge for scaling startups.
• Offers personalized BHASKAR IDs for streamlined interactions.
• Advanced search for resources and opportunities.
• Promotes India as a global innovation hub, enabling international collaborations.
• Enables startups and entrepreneurs from non metro cities and regions to connect with the larger startup ecosystem, fostering inclusivity and regional growth.

Way Forward

The startup ecosystem has witnessed significant growth in recent years, supported through the Startup India initiative, increasing investor interest, and a young and tech-savvy population, which place India as a major global hub for innovation and entrepreneurship.

Must Read Articles: 

INDIA'S STARTUP ECOSYSTEM

HOW INDIA CAN BECOME THE WORLD'S LEADING STARTUP ECOSYSTEM

STARTUP IN INDIA

Source: 

DD NEWS