To build a robust Start-up ecosystem in the country

for nurturing innovation and providing

opportunities to budding entrepreneurs
OBJECTIVES
• Attracting more innovation and entrepreneurs
• Job creation
• Transforming youth to job givers than job
seekers.
• Boost to Make in India initiative and foreign
exchange earnings in the long run
The scheme describes a “Startup” as an entity which has
been incorporated or registered in India, not prior to five
years, under the following:
•Companies Act, 1956 for a private company.
•Partnership Act, 1932 for a registered partnership firm.
•Limited Liability Partnership Act, 2008 for a Limited
Liability Partnership.
REGISTRATION PROCESS

Docs:
● A letter of recommendation & support by
recognised incubator.
● Letter of prescribed financing
● Patent filed and published in IPO
 startup ecosystem
• A startup ecosystem is formed by people,
startups in their various stages and various
types of organizations in a location (physical
and/or virtual), interacting as a system to
create new startup companies
Elements of startup Ecosystem
1. Simplification and Handholding
 Compliance • To reduce the regulatory burden on Startups
Regime based on thereby allowing them to focus on their core
business and keep compliance cost low
Self-Certification

• To create a single point of contact for the entire

Startup India Hub Startup ecosystem and enable knowledge
exchangeand access to funding

Rolling-out of • To serve as the single platform for Startups for

Mobile App and interacting with Government and
RegulatoryInstitutions for all business needs and
Portal information exchange among various stakeholders
Legal Support and • To promote awareness and adoption of IPRs by
Fast-tracking Startups and facilitate them in protecting and
Patent Examination commercializing the IPRs by providing access to
high quality Intellectual Property services and
at resources, including fast-track examination of
Lower Costs patent applications and rebate in fees.

Relaxed Norms of • To provide an equal platform to Startups (in the

Public Procurement manufacturing sector) vis-à-vis the experienced
for Startups entrepreneurs/ companies in public procurement

Faster Exit for • To make it easier for Startups to wind up

Startups operations
2. Funding Support and Incentives

IMAGE Add
Funding Support
and Incentives
 • To provide funding support for development
Fund of Funds
and growth of innovation driven enterprises

• To catalyse entrepreneurship by providing

credit to innovators across all sections of
Credit
Guarantee society

• To promote investments into Start-ups by

mobilizing the capital gains arising from sale of
Tax
Exemption capital assets
1) Fast- tracking of start up patent
applications :

 The valuation of any innovation goes up immensely,

once it gets the protective cover of a patent.

 Central Government to bear facilitation cost: Under

this scheme, the Central Government shall bear the
entire fees of the facilitators for any number of
patents.

 Further, Startups shall be provided an 80%

rebate in
filing of patents vis-a-vis other companies
 Central Government, State Government and PSUs
have to mandatorily procure at least 20% from the
Micro Small and Medium Enterprise (MSME) for
works, supplies and services by public bodies.

 In order to promote Startups, Government shall

exempt Startups (in the manufacturing sector) from
the criteria of “prior experience/ turnover” without
any relaxation in quality standards or technical
parameters.
 To make it easier for Startups to wind up
operations.

 Under The Insolvency and Bankruptcy Bill 2015

(“IBB”); wound up within a period of 90 days
from making of an application for winding up on
a fast track basis.

 An insolvency professional shall be appointed

for the Startup.
 The Fund will be in the nature of Fund of Funds, which means
that it will not invest directly into Startups, but shall
participate in the capital of SEBI registered Venture Funds.
 The Fund of Funds shall be managed by a Board with private
professionals drawn from industry bodies, academia, and
successful Startups.
 Life Insurance Corporation (LIC) shall be a co-investor in the
Fund of Funds
 The Fund of Funds shall contribute to a maximum of 50% of
the stated fund size. In order to be able to receive the
contribution,
 the enterprise should have already raised the balance 50% or
more of the stated fund size
 Debt funding to Startups is also perceived as
high risk and to encourage Banks and other
Lenders to provide Venture Debts to Startups.

 Credit guarantee mechanism through National

Credit Guarantee Trust Company (NCGTC)/
SIDBI is being envisaged with a budgetary
Corpus of INR 500 crore per year for the next
four years.
 It is imperative that the profits of Startup
initiatives are exempted from income-tax for a
period of 3 years.

 This fiscal exemption shall facilitate growth of

business meet the working
and capital the initialyears
requirements during of
operations.
.
 Exemption shall be given to persons who have
capital gains during the year, if they have
invested such capital gains in the Fund of
Funds recognized by the Government.
 This will augment the funds available to
various VCs/AIFs for investment in Startups.

 To promote investments into Startups by

mobilizing the capital gains arising from sale of
assets.
STARTUP INDIA
PROGRAMS
 STARTUP
INDIA
•
PROGRAMS
The Startup India Yatra aims to promote
entrepreneurship in rural and non-metro
regions across states.

• Shell E4 Start-up Hub – Energizing and

Enabling Energy Entrepreneurs
 Simplification
• 6096 have been recognised as Startups by and
DIPP
• 74 Startups have been approved for availing Handholding
tax benefits by IMB

• The hub has mentored more than 450

Startups for incubation, funding support etc..

• Startup India Online Hub- 21,000 users have

• registered

• 50% rebate in Trademarks filing fee to

Startups. Overall, more than 970 Startup
• cases have been facilitated under the
scheme!
HIGHLIGHTS..
Funding Support
and
600 crore has been released to SIDBI.
Incentives
175 Startups have received funding from various
AIFs

1,91,000 applicants have signed up for the

course, out of which around 8,000 applicants have
successfully completed 100% of the course
HIGHLIGHTS..
457 selected in FY2016-17, 374 Tinkering Labs have received a Grant-in-Aid of INR 12 Lakh
each NITI Aayog has approved 13 institutes to establish new incubators with a grant of INR
10 Crores each

Established incubators have received the scale-up grant of INR 2.5 Crore as first instalment.

Research Park
at IIT Kharagpur is under construction and INR 74.83 crore has been released

Research Park at IIT Gandhinagar is being set up by DST which has sanctioned INR 90 crore
and disbursed an initial instalment of INR 40 crore.

290 Startups have received benefits from these bio-incubators under various programmes
like Biotechnology Ignition Grant, IIPME (Industry Innovation Programme on Medical
Electronics), Sparsh, Grand Challenges, BioNEST,
 HIGHLIGHTS..
30 bio-incubators have been supported (sanction amount of INR 185 Cr) by DBT.

INR 42 crore has been sanctioned and INR 17 crore has been disbursed
already to 11 TBI(Technology Business Incubators)

INR 475 crore for 2016-18 has been earmarked under UAY and 92 research
proposals from IITs have been approved. Under this scheme, INR 75 crore has been
Disbursed for research proposals from IITs under 6 domains.

Smart India Hackathon, under MHRD was conducted on 1st April 2017. About 7500 teams
from tier 2-3 cities including 40,000+ students, 29 Government Departments participated
in the 36 hour non-stop digital programming event.

NIDHI
Grand challenge was conducted to promote entrepreneurship amongst student
community. 224 applications were received and out of 30 finalists selected, 12 student
run teams were awarded ₹ 10 Lakh each
•
Stand Up India
Stand Up India Scheme is approved by Union Cabinet and
launched by Honorable Prime Minister of India on 15th August ,
2015.

•Objective is to facilitate bank loans between 10 lakh to 1 crore to

SC/ST borrower and at least one women per bank for setting up
enterprise.

•The scheme promoted 2.5 lakh women, scheduled caste and

scheduled tribes entrepreneurs through banks.

•The Scheme will act as a refinance window through SIDBI (Small

Industries Development Bank of India) with INR 10,000 crore.

•It will provide loans to entrepreneurs belonging to the said three

categories in the range of INR 10 lakh to INR 1 crore.
 References
https://www.standupmitra.in/Home/SubsidySchemesForWomen

https://www.standupmitra.in/Home/SubsidySchemesForSCST

https://www.standupmitra.in/Home/SubsidySchemesForAll
 Skill India
Skill India is an initiative of the Government of India It was
launched by Prime Minister Narendra Modi on 15th July
2015 with an aim to train over 40 crore people in India in
different skills by 2022.

The initiatives include National Skill Development Mission,

National Policy for Skill Development and
Entrepreneurship 2015, Pradhan Mantri Kaushal Vikas
Yojana (PMKVY) scheme and the Skill Loan scheme.
 Initiatives
Pradhan Mantri Kaushal Vikas Yojanais a unique
initiative by the Government of India that aims to offer
24 lakh Indian youth meaningful, industry relevant, skill
based training.

Under this scheme, the trainees will be offered a

financial reward and a government certification on
successful completion of training and assessment, which
will help them in securing a job for a better future.
Pradhan Mantri Kaushal Kendra,
Ministry of Skill Development and Entrepreneurship ( MSDE )
intends to establish visible and aspiration Model Training Centres
( MTCs ) in every district of the country. NSDC is the
implementation agency for the project.

The model training centres envisage to:

•Create benchmark institutions that demonstrate aspiration
value for competency-based skill development training.
•Focus on elements of quality, sustainability and Connection with
stakeholders in skills delivery process.
•Transform from a Mandate-driven footloose model to a
sustainable institutional model.
•SANKALP (Skill Acquisition And knowledge Awareness for
livelihood Promotion)
aims to strengthening institutional mechanism at both
national and state levels, building a pool of quality trainers and
assessors, creating convergence among all skill training
activities at the state level, establishing robust monitoring and
evaluation system for skill training programmes, providing
access to skill training opportunities to the disadvantageous
sections in relevant manufacturing sectors.
• Udaan
It is special industry initiatives for Jammu &
Kashmir in the nature of partnership between the
corporate of India and Ministry of Home Affairs
and implemented by national Skill Development
Corporation. Aim is to provide skill training and
enhance the employability of unemployed youth
of J&K.