The document discusses India's start-up ecosystem and its importance in achieving the government's vision of an Atmanirbhar Bharat or self-reliant India. It notes that start-ups drive innovation, job creation and economic growth. The government has implemented policies like Startup India to support start-ups. India now has over 12,000 start-ups and a strong talent pool but start-ups still face challenges like funding and a lack of innovation. The government is addressing this through initiatives that promote entrepreneurship, access to capital and resources across India.

1. Start-up and
Innovation
Ecosystem for
Atmanirbhar
Bharat

2. Introduction
Atmanirbhar Bharat, meaning "self-reliant India," is a government initiative
focused on bolstering economic self-sufficiency and reducing dependency on
imports. Start-ups play a vital role in this vision by driving innovation, creating
employment opportunities, and contributing to economic growth. Start-ups
bring fresh ideas and agility to sectors, addressing local needs and challenges
through disruptive technologies and services. The government has implemented
policies like the Startup India campaign, providing support and incentives to
foster the start-up ecosystem. By promoting start-ups as a crucial component of
Atmanirbhar Bharat, the government aims to cultivate an environment of
entrepreneurship, innovation, and self-reliance, bolstering India's economic
resilience and global competitiveness.
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3. What is Startup?
• Startup means an entity, incorporated or registered in India not prior to five years, with annual turnover not
exceeding INR 25 crore in any preceding financial year, working toward innovation, development, deployment or
commercialization of new products. processes or services driven by technology or intellectual property.
• An initiative by Cent Provided that such an entity is not formed by splitting up or reconstructing a business already
in existence.
• Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded
INR 25 crore or it has completed 5 years from the date of incorporation/ registration.
• Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the
Inter-Ministerial Board, setup for such purpose.

4. The start-up ecosystem in India
• India has emerged as one of the fastest-growing startup ecosystems in the world, with a vibrant
entrepreneurial culture, a growing pool of talented professionals, and a supportive government policy
environment. Here are some key highlights of the startup ecosystem in India:
1.Growing number of startups: According to a report by Nasscom, India had over 12,000 startups as of
2020, making it the third-largest startup ecosystem in the world after the US and China.
2.Supportive government policies: The Indian government has launched several initiatives to support
startups, including the Startup India program, which provides funding, mentorship, and other resources
to entrepreneurs.
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5. 3. Access to funding: India has a thriving venture capital industry, with several domestic and
international funds investing in Indian startups. In addition, several government-backed funds and
initiatives have been launched to provide funding to startups.
4. Growing pool of talent: India has a large pool of highly skilled professionals, including
engineers, designers, and business professionals, who are increasingly interested in working for
startups.
5. Incubators and accelerators: There are several startup incubators and accelerators in India that
provide mentorship, funding, and other resources to startups, helping them to scale and grow.
6. Strong tech ecosystem: India has a strong technology ecosystem, with several tech giants and
startups developing cutting-edge technologies in areas such as artificial intelligence, blockchain, and
machine learning.
Overall, the startup ecosystem in India is rapidly growing and evolving, providing opportunities for
entrepreneurs and investors alike.
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6. Facts and figure
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7. Fact & figure: Overview of the performance of states
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8. Global ranking of Indian startups
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9. Challenges Faced by Start-ups in India
• A recent study, "Entrepreneurial India" by the IBM Institute found that 90% of Indian startups fail within the first five years. And the most
common reason for failure is lack of innovation - 77% of venture capitalists surveyed believe that Indian startups lack new technologies or unique
business models
• Planning : As the saying goes, "if you fail to prepare, prepare to fail." So don't leave the details to later
• Execution:
• Funding:
• Lack of Innovation
• lack of mentorship: You may have a great product or idea, but lack the necessary guidance, market experience, or knowledge to take it to the next
level. That's where a mentor comes in, with the wisdom and confidence to help you clear those roadblocks that are holding your startup back.
According to Rhett Morris of Endeavor Insight 33% of tech firm founders who are mentored by successful entrepreneurs went on to become top
performers .
• Human Resources & Poor business ethics:
"Since 2015, as many as 1,503 startups have closed down in India. And the major reason is due to the replication of Western business models, and not
lack of subsequent funding from the investors. The highest number of failures were in logistics, e-commerce and food technology.
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10. Government Initiatives to Promote Start-ups
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• Startup India Initiative
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• Pradhan Mantri Mudra
Yojana
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• Atal Innovation Mission

11. Startup India Initiative
The Startup India Initiative is, by far, the largest government scheme for startups in India.
Started by Prime Minister Narendra Modi in 2016, over 50,000 businesses come under this
scheme.
It has an extensive collection of e-books, courses, and mentorship programs to promote
leadership and skills. Critical benefits of this scheme include:
•Tax exemption
•Cost reduction
•Easy business wind-up option in 90 days.
•Access to funds
•Self-certification under labour and environmental laws
•Fast-track patent registration with an 80% fee rebate.
Here’s the eligibility for this government funding for startups:
•The startup should be a registered partnership firm, private limited company, or LLP.
•Turnover shouldn’t exceed 100 crores in any of the previous financial years.
•The startup must apply within ten years from the date of formation.
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12. Pradhan Mantri Mudra Yojana
PMMY is a scheme for startups and MSMEs that aims to provide access to
capital and loans to help ventures sustain and grow their business.
Launched in 2015, eligible applicants can claim loans of up to 10 lakhs for
working capital requirements. The repayment period for loans availed
under this scheme is five to seven years.
There are three categories under which loan gets provided in PMMY:
1.Shishu – Up to 50,000
2.Kishor -Up to 5 Lakhs
3.Tarun – Between 5-10 Lakhs
Startups must be involved in trading, manufacturing, services, or any other
non-farm business to be eligible for this scheme.
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13. Atal Innovation Mission
This scheme belongs to a category of government
schemes for startups with a mandate to promote
entrepreneurship and innovation countrywide. The
core focus of this scheme is on tier-2 and tier-3
cities.
Also known as AIM, this scheme provides a platform
for promoting world-class innovation hubs, sectoral
focus, grand challenges, and talent initiatives.
Some key programs under this scheme are innovation
centres, Atal tinkering labs, community incubation
centres, and innovation centres.
Besides providing financial support and resources
to startups, the scheme offers easy access to
information and resources.
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14. Funding Options for Start-ups
Angel Networks &
Platforms
Venture Capital
Funds
Micro VCs Corporate Venture
Capital
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15. • Angel networks & platforms
is where angel investors pool their funds to invest in startups. As they operate as a group, these investors can provide larger funds and hedge risks. The platform gets equity
ownership of the startup, and they benefit if the startup prospers.
Some popular platforms are AngelList, Venture Catalysts, and Let’s Venture.
• Venture Capital Funds
are an institution whose business is to provide capital to promising startups. This point is where the startup funding goes to the next level. As venture capital funds are an
institution, they provide large amounts of capital to a company for growth and expansion and monitor its progress to ensure their investment delivers sustainable development
Venture capital funds get equity or equity-linked instruments from startups in return for the funding. They leave the company when it releases an IPO or is acquired.
• Micro VCs
One branch of venture capital is micro VCs, with a lesser fund size of around $60 Mn – $70 Mn. Micro VCs invest in idea-stage startups and get an equity stake in return.
• Corporate Venture Capital
Another branch of VC is Corporate Venture Capital (CVC). CVCs are large multinationals that invest corporate funds into small, innovative startups either for technology,
talent pool, or to acquire a target market.
 CVCs provide startups with resources like marketing expertise, strategic direction, or a line of credit. Being associated with big names gives startups a boost.
 CVC provides funding in exchange for an equity stake in the startup. Among Indian CVCs are Mahindra Partners, Reliance Ventures, and Times Group’s Brand Capital.
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16. Indian Start-ups
Flipkart Paytm OLA Zomato
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17. Success Stories of Indian Start-ups
• There have been numerous success stories of Indian start-ups that have made a significant impact in various industries. Here
are some notable examples:
1. Flipkart: Founded in 2007 by Sachin Bansal and Binny Bansal, Flipkart is one of India's leading e-commerce platforms. It
started as an online bookstore and expanded to offer a wide range of products. Flipkart revolutionized the e-commerce industry
in India and was eventually acquired by Walmart in 2018, making it one of the largest acquisitions in the Indian start-up
ecosystem.
2. Paytm: Launched in 2010 by Vijay Shekhar Sharma, Paytm started as a mobile payments and recharge platform. It grew
rapidly and diversified its services to include digital wallets, e-commerce, and financial services. Paytm played a crucial role in
driving India's digital payments revolution and has become one of the country's most valuable start-ups.
3. Ola: Founded in 2010 by Bhavish Aggarwal and Ankit Bhati, Ola is a ride-hailing platform that has transformed the
transportation industry in India. Ola started as a taxi aggregator and expanded its services to include auto-rickshaws, bikes, and
electric vehicles. It has become one of the largest ride-hailing companies in India and has also expanded internationally.
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18. • 4. Zomato: Started in 2008 by Deepinder Goyal and Pankaj Chaddah, Zomato is a food delivery and restaurant discovery
platform. It provides information about restaurants, menus, and customer reviews, and also facilitates food delivery from partner
restaurants. Zomato has grown exponentially and expanded to multiple countries, making it one of the leading food delivery
platforms globally.
• 5. BYJU'S: Founded in 2011 by Byju Raveendran, BYJU'S is an ed-tech company that offers online learning programs for
students. It provides interactive video lessons and personalized learning experiences across various subjects and grade levels.
BYJU'S gained widespread popularity, especially during the COVID-19 pandemic when online education became more
prevalent, and it has become one of the world's most valuable ed-tech companies.
• 6. OYO: Started in 2013 by Ritesh Agarwal, OYO is a hospitality company that offers budget accommodations and standardized
hotel rooms. OYO operates on a franchise model and partners with hotels to provide quality rooms at affordable prices. It rapidly
expanded its presence in India and internationally, becoming one of the largest hotel chains globally.
• These are just a few examples among many successful Indian start-ups that have made a mark in their respective industries.
India's start-up ecosystem continues to thrive, with innovative ideas and ventures emerging across various sectors.
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20. Conclusion
• Start-ups play a crucial role in achieving Atmanirbhar Bharat by promoting job
creation, innovation, economic growth, and entrepreneurship. They contribute
to building indigenous technologies, reducing import dependency, and
fostering a skilled workforce. To create a thriving start-up ecosystem, the
government and stakeholders need to implement regulatory reforms, facilitate
access to capital, develop infrastructure, focus on skill development and
education, promote industry-academia collaboration, and foster a supportive
ecosystem. These measures will help India become self-reliant, economically
independent, and globally competitive.
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