India’s Startup Ecosystem Expands to 1.4 Lakh with Government Boost

Sunil Sonkar
2 Min Read
India's Startup Ecosystem Expands to 1.4 Lakh with Government Boost

India’s startup ecosystem has reached to more than 1.4 lakh startups, reveals Union Minister of State for Commerce and Industry, Jitin Prasada. The figure highlights remarkable growth and dynamism of entrepreneurial landscape under the ‘Startup India’ initiative of the Indian government.

Startup India was formed in 2016 and has been playing important role in fostering innovation and streamlining the regulatory environment for new businesses since then. The Department for Promotion of Industry and Internal Trade (DPIIT) have recognized 1,40,803 startups as of June 30. More than 55 regulatory reforms have been introduced to simplify business operations as well as facilitate capital raising, and reduce compliance burdens. All these reflects a commitment to creating a more conducive environment for the new entrepreneurs.

Lately, the government removed angel tax on startups and it is believed to now attract more foreign investment. It will help in alleviating the funding challenges.

The Startup India Seed Fund Scheme (SISFS) has also played an important role in giving birth to a plethora of startups in India. The allocation amount under it was Rs 945 crore for the period starting from 2021-22. The fund supports early-stage startups and provides them with the initial required capital to grow and scale operations. Moreover, the Fund of Funds for Startups (FFS) with a corpus of Rs 10,000 crore has been supporting startups by meeting their funding requirements. The Small Industries Development Bank of India (SIDBI) operates this fund. It ensures that the startups have access to all the necessary financial resources.

Another significant initiative is the credit guarantee scheme. It provides guarantees for loans extended to DPIIT-recognized startups by scheduled commercial banks, Non-Banking Financial Companies (NBFCs) and venture debt funds (VDFs). It aims to reduce risk for lenders and encourage more financial institutions to support startups.

Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *