Startup-India – UPSC Prelims

By /
Ministry/Department :  Ministry of Commerce and Industry
Objective: Aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups. The objective is that India must become a nation of job creators instead of being a nation of job seekers.
Scheme:
  • It is focused to restrict role of States in policy domain and to get rid of “license raj” and hindrances like in land permissions, foreign investment proposal, environmental clearances
  • Managed by: The programs under the initiative are managed by a dedicated Startup India Team which reports to the Department for Industrial Policy and Promotion (DPIIT).
  • Key Pillars: 
    • Simplification and Handholding: 
      • Single Window Clearance even with the help of a mobile application
      • Modified and more friendly Bankruptcy Code to ensure 90-day exit window
      • Freedom from mystifying inspections for 3 years
      • Eliminating red tape
      • Self-certification compliance
      • New schemes to provide IPR protection to start-ups and new firms
    • Funding & Incentives: 
      • 10,000 crore fund of funds
      • Credit Guarantee funds for start up  through SIDBI
      • 80% reduction in patent registration fee
      • Freedom from Capital Gain Tax for 3 years
      • Freedom from tax in profits for 3 years
    • Incubation & Industry-Academia Partnerships: 
      • Innovation hub under Atal Innovation Mission
      • Stand India across the world as a start-up hub
      • Starting with 5 lakh schools to target 10 lakh children for innovation programme
  • The initiative is also aimed at promoting entrepreneurship among SCs/STs, women communities.
  • Rural India’s version of Start up India was named the Deen Dayal Upadhyay Swaniyojan Yojana
What is an Start-Up under this scheme?
A startup is an entity that is headquartered in India which was opened less than seven years ago and have an annual turnover less than ₹25 crore
Status:
  • As of June 2021, 50,000 startups across have been recognized as startups by DPIIT.
  • Each State and UT has at least one startup. About 1.7 lakh jobs were created by recognized startups in the 2020-2021 period alone.
  • The sectors that had the maximum registered startups were ‘Food Processing’, ‘Product Development’, ‘Application Development’, ‘IT Consulting’ and ‘Business Support Services’.
  • The leadership teams of 45% of startups have a woman entrepreneur, a trend that will inspire more women entrepreneurs to turn their ideas into startups.
Factual Information:
  • Launched in 2016
Scroll to Top