Startup India is a Government of India flagship initiative to build Startups and nurture innovation. Through this initiative, the Government plans to empower Startup ventures to boost entrepreneurship, economic growth and employment across India.
The Government’s Action Plan will help accelerate the growth of Startups throughout India, across all important sectors – in Tier 1, 2 and 3 cities, including semi-urban and rural areas – and includes promoting entrepreneurship among SCs/STs and women communities.
The 19-point Action Plan, organized by the Department for Promotion of Industry and Internal Trade (DPIIT), focuses both on restricting hindrances and promoting faster growth by way of:
Startup India is about creating prosperity in India. Many enterprising people who dream of starting their own business lack the resources to do so. As a result, their ideas, talent and capabilities remain untapped – and the country loses out on wealth creation, economic growth and employment.
Startup India will help boost entrepreneurship and economic development – by ensuring that people who have the potential to innovate and start their own business are encouraged – with proactive support and incentives at multiple levels.
In the words of Prime Minister, Narendra Modi:
Startup India is a revolutionary scheme that has been started to help the people who wish to start their own business. These people have ideas and capability, so the government will give them support to make sure they can implement their ideas and grow. Success of this scheme will eventually make India, a better economy and a strong nation.1According to data from the Department of Economic Affairs, as of August 27, 2021, foreign exchange reserves in India reached US$ 633.5 billion mark.
Startup India’s 19-Point Action Plan
The Startup India Action Plan was unveiled by Prime Minister Narendra Modi on 16th January, 2016 to highlight several initiatives and schemes proposed by the Government of India to build a strong eco-system to nurture innovation and empower Startups across India.
The 19-point Action Plan envisages several incubation centres, easier patent filing, tax exemptions, ease of setting-up of business, a INR 10,000 crore corpus fund, a faster exit mechanism, among others.
Over 1500 CEOs, Startup founders and investors who attended the Startup India launch included:
Startup India campaign has received worldwide support for its attempt to bring Startups to the forefront of India's growth story. It allows entrepreneurs to focus on their core business (instead of time-delaying regulatory compliances) – while empowering them with a strong eco-system to support their creativity and growth.
Definition of a Startup (for the purpose of Government Schemes only)
A Startup means an entity:
The entity shall cease to be a Startup if:
Further, the Startup shall be eligible for tax benefits only after it has obtained certification
from the Inter-Ministerial Board, set up for such purpose.
Entity: Private Limited Company (under The Companies Act, 2013) or a Registered Partnership Firm (under The Indian Partnership Act, 1932) or Limited Liability Partnership (under The Limited Liability Partnership Act, 2008).
Identification of businesses covered under the definition: A business is covered under the definition if it aims to develop and commercialize:
India has a potential to increase its goods and services export to Australia to US$ 15 billion by 2025 and US$ 35 billion by 2035.
The mere act of developing
In order for a “Startup” to be considered eligible, the Startup should
* DPIIT may publish a ‘negative’ list of funds which are not eligible for this initiative.
nature of the business for granting tax related benefits Approval from the Inter-Ministerial Board shall not in any manner, limit or absolve the entity(ies) from any liability incurred in case of any misrepresentation/ fraud arising from submission of such application and/or supporting such application.