Startup India Initiative

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Context

India recorded the highest-ever annual addition of ~44,000 startups in 2025, reinforcing its position as the third-largest startup ecosystem globally.

About

  • Launch: 16 January 2016
  • Nature: Flagship initiative of Government of India
  • Managed by: Department for Promotion of Industry and Internal Trade
  • Aim: Transform India from job seekers to job creators

Objectives

  • Build a robust startup ecosystem
  • Encourage innovation and entrepreneurship
  • Simplify regulations and reduce compliance burden
  • Provide financial, incubation, and mentorship support
  • Generate large-scale employment

Action Plan – Core Pillars

  1. Simplification & Handholding
  2. Funding Support & Incentives
  3. Industry–Academia Partnership & Incubation

Key Features

  • Self-certification under labour & environmental laws
  • Startup India Portal & Mobile App for single-window support
  • Fund of Funds for Startups (FoF): ₹10,000 crore, implemented via Small Industries Development Bank of India
  • Credit Guarantee Fund (₹500 crore per year for 4 years via SIDBI)
  • Tax benefits: Income tax exemption for 3 consecutive years, Capital gains tax exemption (subject to conditions)
  • Fast-track patents with 80% fee rebate
  • Easier exit within 90 days under IBC
  • Relaxation in government procurement norms

Incubation & Innovation Support

  • Atal Innovation Mission (AIM) and SETU under NITI Aayog
  • Startup fests, incubators, accelerators
  • 7 Research Parks (modelled on IIT Madras)
  • Industry–academia collaboration and student innovation programs

Eligibility for Startup Recognition

  • Entity age ≤ 10 years
  • Annual turnover ≤ ₹100 crore
  • Innovation-driven business model
  • Not formed by splitting/restructuring existing business

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