Startup India Innovation

1. Startup
India
Innovation
AARTI PANDEY

2. Startup India & Innovation
Startup India is an initiative launched by the Indian government in 2016 to promote and support
entrepreneurship and innovation in the country. The program is designed to create a conducive environment
for startups to grow and thrive. Innovation is a key component of this initiative, as it is seen as a driving force
behind economic growth and job creation.
Startup India is a flagship initiative of the Government of India, intended to
catalyse startup culture and build a strong and inclusive ecosystem for
innovation and entrepreneurship in India.
Launched on 16th January, 2016, the Startup India Initiative has rolled out
several programs 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 programs are managed by a dedicated Startup India
Team, which reports to the Department for Industrial Policy and Promotion
(DPIIT).

3. Key Pillars of Support for
Startups
Simplification and Handholding
Easier compliance, easier exit process for failed startups, legal
support, fast tracking of patent applications and a website to reduce
information asymmetry.
Funding & Incentives
Exemptions on Income Tax and Capital Gains Tax for eligible startups; a
fund of funds to infuse more capital into the startup ecosystem and a
credit guarantee scheme.
Incubation & Industry-Academia Partnerships
Creation of numerous incubators and innovation labs, events,
competitions and grants.

4. Action plan of Startup India and
Innovation
With this Action Plan the Government hopes to accelerate spreading
of the Startup movement:
• From digital/ technology sector to a wide array of sectors including
agriculture, manufacturing, social sector, healthcare, education, etc.;
and
• From existing tier 1 cities to tier 2 and tier 3 citites including semi-
urban and rural areas
The Action Plan is divided across the following areas: • Simplification
and Handholding • Funding Support and Incentives • Industry-
Academia Partnership and Incubation

5. Here are some of the ways in which Startup India promotes innovation:
Funding Support: The initiative provides various funding opportunities for startups. It includes
funds of funds with a corpus of ₹10,000 crore to support startups through investments in
venture capital funds. This financial support helps startups in their early stages and
encourages innovation.
Tax Benefits: Startup India offers tax benefits to startups to encourage innovation. Eligible
startups can avail a three-year income tax exemption and other tax incentives. This helps in
reducing the financial burden on startups, allowing them to invest more in research and
development.
Intellectual Property Rights (IPR) Protection: Startups often rely on their intellectual property
for innovation. Startup India provides fast-track patent examination at lower costs to
encourage innovation and protect intellectual property.

6. Ease of Doing Business: The initiative focuses on improving the ease of doing business in India.
This includes simplifying regulatory and compliance procedures, making it easier for startups to
operate and innovate without unnecessary bureaucratic hurdles.
Incubation Centers: Startup incubation centers and technology parks have been established to
nurture innovative ideas and provide startups with the necessary infrastructure, mentorship, and
support to grow and develop their innovations.
Innovation Challenges: The government organizes innovation challenges and competitions to
encourage startups to develop solutions to specific problems in various sectors, such as
healthcare, agriculture, and education.
Startup India recognizes that innovation is a crucial driver of economic growth and job creation. By
providing support, financial incentives, and a supportive ecosystem, the initiative aims to foster a
culture of innovation and entrepreneurship in India, ultimately boosting the country's economic
development.

7. Networking and Collaboration: Startup India fosters collaboration and networking among
startups, industry experts, and investors. This exchange of ideas and expertise promotes
innovation in various sectors.
Skill Development: The initiative also focuses on enhancing the skills of entrepreneurs and
providing them with the knowledge and tools necessary for innovation and business growth.
International Collaboration: The government encourages international collaboration and
partnerships to promote innovation and help startups access global markets and resources.

8. •Today, 31 of the 36 States and Union Territories have a dedicated
Startup Policy
•27 of these Startup Policies were developed after the launch of the
Startup India initiative in 2016
•There is at least one DPIIT-recognized startup present in each of
the 36 States and Union Territories
•653 Districts host at least one DPIIT-recognized startup

9. Government schemes
Few examples of govt. schemes

10. With an aim to operationalise its action plan towards a ‘pro-entrepreneurship’ attitude, Startup India
has created a three-pronged strategy
• to facilitate a common platform to connect the entire ecosystem while reducing information
asymmetry,
• to provide benefits and other necessary support, and
• to engage regional entrepreneurs in transforming their ideas into business ventures

11. Shram Suvidha Portal, launched in 2014 under Ministry of Labour and Employment (MoLE), facilitates
businessmen to seek all types of registrations and submit returns that are required under labour laws
through a single online window. Until February 2020, nine States (Haryana, Madhya Pradesh,
Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Punjab, Uttarakhand, and Delhi) had integrated their
regional portals with the Shram Suvidha Portal.
Over 30 GeM (Government e-Marketplace) workshops were conducted until December 2020 to
onboard startups on the platform.

12. Easy exit of startups
A complex and tedious winding-up process was yet another restriction for startup enthusiasts as it
was considered that “shutting down a company is far more difficult than starting a company. The
costs involved in closure were few of the main reasons why several firms had continued to remain
dormant without legally shutting operations. They would be required to bear costs for maintenance
and compliance with annual filings, failing which would entail penal consequences by the relevant
authorities.

13. Fund of funds for startup
The Fund of Funds (FFS) for startups has been established to provide funding support for
development and growth of innovation driven enterprises as well as to address one of the key
challenges faced by startups in India i.e. access to risk capital. Due to lack of collateral, uncertain cash
flows and unconventional business models, startups are unable to raise financing through traditional
sources such as banks and Non-Banking Financial Companies (NBFC). Besides this, the high-risk
nature of startups, wherein a significant percentage fail, reduces their investment attractiveness for
traditional financiers
5_years_Achievement_report _ final (1).pdf (startupindia.gov.in)-IMPORTANT

14. Startup Ecosystem

15. Bibliography and reference URLs:
Startup India
Startup India: The Way Ahead
5_years_Achievement_report _ final (1).pdf (startupindia.gov.in)
SUIKIT.pdf (startupindia.gov.in)
Book Documents-final share (startupindia.gov.in)
Startup India Scheme
Funding Guide (startupindia.gov.in)
Idea Bank (startupindia.gov.in)
Government Schemes (startupindia.gov.in)
States' & UTs' Startup Policies (startupindia.gov.in)