#startups
#prelims
🅾️Various Initiatives taken by Government to promote startups
👉Start-ups are often expected to contribute to the revitalization of the national and regional economies. In terms of entrepreneurship and business, India has evolved into one of the top emerging countries in the world. Hundreds of startup companies have been founded in the last few years, many of which are enjoying incredible success.
🔵Startups are becoming the driving force behind innovation-driven economic recovery, reorientation, and growth. They are also constructing a distributed-yet-collective future that is in line with the changing requirements and value systems of each country. The global startup economy is worth nearly $3 trillion out of the total world economy of around $90 trillion, and is growing exponentially.
🅾️Startups in India
👉India is the 3rd largest ecosystem in the world, with 107 unicorns. Sustained government efforts in this direction have resulted in an increase in the number of startups. In India, startups increased from 442 in 2016 to 92,683 in 2023. With over 100 unicorns, the Indian startup ecosystem is expanding. The year 2021 witnessed a record set of 4 entries to the coveted unicorn club, and there has been a staggering jump of 15,400% in the number of startups in India in 6 years. More than 4,000 recognised startups are engaged in sectors relating to emerging technologies such as the Internet of Things (IoT), robotics, artificial intelligence, analytics, etc.
🔵Launched on January 16, 2016, the Startup India Initiative has rolled out several programmes with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers.
⭕️⭕️These programmes are managed by a dedicated Startup India team, which reports to the Department for Industrial Policy and Promotion (DPIIT).
🔵To support the startups in the country across various sectors, including emerging technologies, the government is implementing various programmes. 👇Details of some programmes are below:
⭕️Startup India Action Plan: An Action Plan for Startup India was unveiled on January 16, 2016. The Action Plan comprises 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”. The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
⭕️Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with a corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in facilitating raising of domestic capital, reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
⭕️⭕️Credit Guarantee Scheme for Startups (CGSS): The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to loans extended to DPIIT recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered Alternative Investment Funds. 🌿CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
#prelims
🅾️Various Initiatives taken by Government to promote startups
👉Start-ups are often expected to contribute to the revitalization of the national and regional economies. In terms of entrepreneurship and business, India has evolved into one of the top emerging countries in the world. Hundreds of startup companies have been founded in the last few years, many of which are enjoying incredible success.
🔵Startups are becoming the driving force behind innovation-driven economic recovery, reorientation, and growth. They are also constructing a distributed-yet-collective future that is in line with the changing requirements and value systems of each country. The global startup economy is worth nearly $3 trillion out of the total world economy of around $90 trillion, and is growing exponentially.
🅾️Startups in India
👉India is the 3rd largest ecosystem in the world, with 107 unicorns. Sustained government efforts in this direction have resulted in an increase in the number of startups. In India, startups increased from 442 in 2016 to 92,683 in 2023. With over 100 unicorns, the Indian startup ecosystem is expanding. The year 2021 witnessed a record set of 4 entries to the coveted unicorn club, and there has been a staggering jump of 15,400% in the number of startups in India in 6 years. More than 4,000 recognised startups are engaged in sectors relating to emerging technologies such as the Internet of Things (IoT), robotics, artificial intelligence, analytics, etc.
🔵Launched on January 16, 2016, the Startup India Initiative has rolled out several programmes with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers.
⭕️⭕️These programmes are managed by a dedicated Startup India team, which reports to the Department for Industrial Policy and Promotion (DPIIT).
🔵To support the startups in the country across various sectors, including emerging technologies, the government is implementing various programmes. 👇Details of some programmes are below:
⭕️Startup India Action Plan: An Action Plan for Startup India was unveiled on January 16, 2016. The Action Plan comprises 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”. The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
⭕️Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with a corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in facilitating raising of domestic capital, reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
⭕️⭕️Credit Guarantee Scheme for Startups (CGSS): The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to loans extended to DPIIT recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered Alternative Investment Funds. 🌿CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
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