12 steps taken by govt to boost India's startup ecosystem

Feb 13, 2024 Abhishek Yadav

Startup India Action Plan

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Startup India Seed Fund Scheme

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Fund of Funds for Startups Scheme

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Credit Guarantee Scheme for Startups

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Regulatory Reforms

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Self-Certification under Labour and Environmental Laws

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Income Tax Exemption for 3 years

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Faster Exit for Startups

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Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019)

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Support for Intellectual Property Protection

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States’ Startup Ranking Framework

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The Startup India Investor Connect Portal

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12 steps taken by govt to boost India's startup ecosystem

12 steps taken by govt to boost India's startup ecosystem

Startup India Action Plan

The Action Plan comprises 19 action items spanning areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry academia partnership and incubation”.

The Action Plan comprises 19 action items spanning areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry academia partnership and incubation”.

Startup India Seed Fund Scheme

The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the Scheme starting from 2021-22.

The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the Scheme starting from 2021-22.

Fund of Funds for Startups Scheme

Fund of Funds for Startups Scheme

The Government has established FFS with a corpus of Rs. 10,000 crores, to meet the funding needs of startups.

The Government has established FFS with a corpus of Rs. 10,000 crores, to meet the funding needs of startups.

Credit Guarantee Scheme for Startups

The Government has established the Credit Guarantee Scheme for Startups to provide credit guarantees to loans extended to DPIIT-recognized startup banks, NBFCs, and others.

The Government has established the Credit Guarantee Scheme for Startups to provide credit guarantees to loans extended to DPIIT-recognized startup banks, NBFCs, and others.

Regulatory Reforms

Regulatory Reforms

Over 55 regulatory reforms have been undertaken since 2016 to enhance the ease of doing business, ease of raising capital and reduce the compliance burden for the startup ecosystem.

Over 55 regulatory reforms have been undertaken since 2016 to enhance the ease of doing business, ease of raising capital and reduce the compliance burden for the startup ecosystem.

Self-Certification under Labour and Environmental Laws

Self-Certification under Labour and Environmental Laws

Startups are allowed to self-certify their compliance under 9 Labour and 3 Environmental laws for a period of 3 to 5 yearsfrom the date of incorporation.

Startups are allowed to self-certify their compliance under 9 Labour and 3 Environmental laws for a period of 3 to 5 yearsfrom the date of incorporation.

Income Tax Exemption for 3 years

Income Tax Exemption for 3 years

The recognized startups that are granted an InterMinisterial Board Certificate are exempted from income tax for 3 consecutive years out of 10 years since incorporation.

The recognized startups that are granted an InterMinisterial Board Certificate are exempted from income tax for 3 consecutive years out of 10 years since incorporation.

Faster Exit for Startups

Faster Exit for Startups

The Government has notified Startups as ‘fast track firms’enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.

The Government has notified Startups as ‘fast track firms’enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.

Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019)

Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019)

A DPIIT-recognized startup is eligible for exemption from the provisions ofsection 56(2)(viib) of the Income Tax Act.

A DPIIT-recognized startup is eligible for exemption from the provisions ofsection 56(2)(viib) of the Income Tax Act.

Support for Intellectual Property Protection

Support for Intellectual Property Protection

Startups are eligible for fast-tracked patent application examination and disposal. They are provided with an 80% rebate in the filing of patents and a 50% rebate in the filing of trademarks.

Startups are eligible for fast-tracked patent application examination and disposal. They are provided with an 80% rebate in the filing of patents and a 50% rebate in the filing of trademarks.

States’ Startup Ranking Framework

States’ Startup Ranking Framework

the major objectives of the ranking exercise are to facilitate states to identify, learn and replace good practices, highlighting the policy intervention by states for promoting the startup ecosystem.

the major objectives of the ranking exercise are to facilitate states to identify, learn and replace good practices, highlighting the policy intervention by states for promoting the startup ecosystem.

The Startup India Investor Connect Portal

The Startup India Investor Connect Portal

The platform links startups and investors to help entrepreneurs from various industries, functions, stages, regions, and backgrounds in mobilizing capital.

The platform links startups and investors to help entrepreneurs from various industries, functions, stages, regions, and backgrounds in mobilizing capital.