Prime Minister Narendra Modi had inaugurated the Startup India initiative on January 16, 2016, with the aim of creating a robust environment to foster innovation, support startups, and stimulate investments in the country’s startup sector. Underlining the significance of acknowledging startups that contribute to nation-building, socio-economic development, and self-reliance, PM Modi had officially designated January 16 as National Startup Day in 2022.
2024 marks the eighth anniversary of the Startup India programme, having expanded from around 400 startups in 2016 to over 1.18 lakh startups so far.
The recognised entities are eligible for multiple benefits from the government including compliance self-certification for labour laws and environmental laws, assistance in patent applications, tax exemption under section 80IAC of the Income-tax Act, and more.
So far, 2,977 income tax exemptions have been given and 3,658 startups have been funded under the SIDBI Fund of Funds scheme which was established in 2016 with a corpus of Rs 10,000 crore, data from the Startup India website showed. The scheme provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, who in turn invest money in startups through equity and equity-linked instruments.
Other than the Fund of Funds scheme, the Startup India programme also involves a Seed Fund scheme to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization; and a Credit Guarantee Scheme for providing credit guarantees to loans extended to DPIIT-recognized startups by banks, NBFCs, venture debt funds under SEBI registered AIFs.
On Tuesday, as part of the National Startup Day celebrations, DPIIT announced the winners of the National Startup Awards 2023 and the 4th edition of the States’ Startup Ranking Framework, two of the flagship initiatives under Startup India. The list will be updated here later.
Meanwhile, below are the reactions commemorating the National Startup Day from some of the notable entrepreneurs. Read on:
Rahul Pagidipati, CEO, ZebPay
“India has emerged as a global powerhouse in the startup ecosystem, showcasing phenomenal growth and fostering innovation across diverse sectors. The nation’s vibrant entrepreneurial spirit has led to a remarkable surge in the creation of startups, contributing significantly to broader economic growth. The growth of the Web 3 industry in India has also been remarkable over the past few years. India is emerging as a strong force in the Web 3 space with more than 450+ start-ups. This reinforces the fact that the potential of Indian startups and talent pool continues to be strong and is only going to grow further in the years to come.”
Nitya Sharma, Founder and CEO, Simpl
“In the era of unbundling of e-commerce, startups play a vital role in creating a level playing field and bringing market access to millions of small businesses led by MSMEs and D2C merchants in the country. They also help in building customers’ trust in merchants online or offline, resulting in a significant acceleration in the trade of goods and services and contributing to India’s objective of achieving a $5 trillion economy by 2028. This National Startup Day should set the tone for the growth of this ecosystem over the next 10 years where governments, industry and academia pool their knowledge and resources together to build a truly digital-first nation, powering the world’s economy.”
Shashank Randev, VC Founder, 100X.VC
“National Startup Day 2024 is special. The heartbeat of Indian innovation echoes the resounding potential of startups—armed with the ability and tenacity to disrupt and offer transformative solutions for the vast market. Just as data fuels the engine of progress, consider this: In the last decade alone, Indian startups have burgeoned – creating new category leaders in an untapped market – Freshworks, Swiggy, Paytm, Veeba, Nykaa and so on. The ability to provide game-changing solutions is not just a pursuit; it’s a commitment to rewriting the code of possibilities for a billion dreams. Buckle up, for the journey has just begun.”
Pankaj Sharma, Co-Founder & Director, Log9 Materials
“India’s vibrant startup scene, boasting over 80,000 ventures and over 100 unicorns, is shifting gears in 2024. While 2022’s funding frenzy cools, investors prioritize stability and profitability. Expect strategic investments in established players, leading to potential mergers and acquisitions as companies seek to optimize. This focus on consolidation signifies a maturing ecosystem, embracing sustainable models and impact investing. Startups tackling climate change, healthcare, and education will continue to thrive, driven by a record $38 billion raised in 2023. Fintech and deep tech, powered by AI and ML, are hotbeds for innovation. 2024 might be a year of measured advancement, but the embers of growth will illuminate the path towards a thriving Indian startup landscape with global impact.”
Nishith Rastogi, Founder, and CEO, Locus
“National Startup Day is a powerful testament to the boundless potential of entrepreneurship, which is instrumental in creating jobs, driving innovation, and fueling economic growth in India. The success story of the ONDC is particularly inspiring in the logistics field, demonstrating how innovative startups can transform entire industries. At Locus, we firmly believe that the government’s visionary initiatives, exemplified by programs like Digital India, act as ideal launchpads for Indian entrepreneurs.”
Saurabh Jain, Co-Founder, Stable Money
“In India’s dynamic startup landscape powered by technology, entrepreneurs’ collective efforts are set to propel the nation’s GDP by 4-5 per cent in the next three to five years. With a substantial pool of 92,683 recognized startups, a robust mechanism is imperative for sustained growth, where collaboration and mentorship play pivotal roles in fostering the startup ecosystem, 2024 promises clarity for Indian fintech, reigniting investor confidence. Crucially, by reaching consumers in Tier 2, Tier 3, and rural areas, fintechs are not just overcoming challenges but strengthening the financial technology market, projected to hit $1.3 trillion by 2025.”