14 February 2024 – In a bid to foster innovation and promote investments, the Indian Government launched the Startup India initiative on January 16, 2016. The initiative is designed to cultivate a robust ecosystem that nurtures startups and encourages their growth.
Startup Action Plan Unveiled:
The government introduced an Action Plan for Startups, featuring 19 action items categorized under “Simplification and Handholding,” “Funding Support and Incentives,” and “Industry-Academia Partnership and Incubation.” This comprehensive plan aims to create a vibrant startup ecosystem in the country.
Program Implementation:
Under the Startup India initiative, the government is actively implementing three flagship schemes: Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). These schemes offer crucial support at various stages of a startup’s business cycle.
- SISFS: Provides financial assistance to seed-stage startups through incubators, with a corpus of Rs. 945 crores. In Tamil Nadu, 20 incubators have been approved, receiving a total sum of Rs. 86.10 crores.
- FFS: Catalyzes venture capital investments and is operationalized by the Small Industries Development Bank of India (SIDBI). Tamil Nadu has witnessed a commitment of Rs. 500 crores to 6 AIFs, with Rs. 384 crores disbursed.
- CGSS: Facilitates collateral-free loans to DPIIT-recognized startups through eligible financial institutions. In Tamil Nadu, five loans totaling Rs. 8.65 crores have been disbursed.
Initiatives under the Startup India program are inclusive, spanning across states, union territories, cities, towns, and rural areas. The government has consistently implemented various programs to achieve the specific objectives of the initiative.
Impact and Growth:
Sustained efforts have led to a significant increase in the number of DPIIT-recognized startups, growing from 300 in 2016 to an impressive 1,17,254 as of December 31, 2023. Specifically in Tamil Nadu, the state boasts 7,559 DPIIT-recognized startups as of the same date.
The Startup India initiative reflects the government’s commitment to fostering a conducive environment for startups, driving innovation, and attracting investments. The growth in the number of recognized startups is a testament to the initiative’s positive impact, contributing to the dynamic landscape of the Indian startup ecosystem.
