Government initiatives to promote startups across the country

2024-07-29 Information

The Government of India has taken various initiatives to promote startups across the country. The details of the various initiatives taken by Ministries/Departments of the Government to promote startups are as under:

The Government with intent to build a strong ecosystem for nurturing innovation and encouraging investments launched the Startup India initiative on 16th January 2016. As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February2019, entities are recognized as ‘startups’ under the Startup India initiative by the DPIIT. DPIIT has recognized 1,40,803 entities as startups as on 30^th June 2024. The State/Union Territory (UT)-wise details of number of DPIIT recognized startups are placed as Annexure-I. For attaining specific objectives, various programs are implemented by the Government under the Startup India initiative. All the steps undertaken by the Government under the initiative are inclusive and are implemented across age-groups, States/Union Territories (UTs), cities, towns, and rural areas. The details of such Government initiatives are placed as Annexure-II. Sustained efforts by the Government under the Startup India initiative have led to an increase in the number of recognised startups to 1,40,803 as on 30th June 2024. The recognized startups have reported to have created over 15.5 lakh direct jobs. There are recognized startups from every State and UT of the country.

Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new enterprises in the non-farm sector. It aims to provide employment opportunities to traditional artisans/ rural and urban unemployed youth at their doorstep.

PMEGP being a Central Sector Scheme assists General Category beneficiaries with Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Physically Handicapped, Transgenders, beneficiaries belonging to Northeastern Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 50 lakhs in the manufacturing sector and Rs. 20 lakhs in the service sector.

Also, own contribution of beneficiaries under Special Category including women is 05% and 10% for General Category beneficiaries.

Since 2018-19, existing PMEGP/REGP/MUDRA enterprises are also supported based on past good performances with 2nd loan for upgradation and expansion. Under 2nd Loan, maximum project cost admissible for Margin Money (MM) subsidy under Manufacturing sector is Rs. 1.00 crore and for Service sector is Rs. 25 Lakhs. Eligible subsidy on 2nd loan for all categories is 15% of project cost (20% for NER & Hill States).

Since inception i.e., FY 2008-09, more than 9.69 lakh micro enterprises have been assisted with Margin Money subsidy of more than Rs 25,500 Crore providing employment to an estimated ~79 lakh persons. Approximately, 50% of the units are set up by SC/ST/Women and 80% of the units are set up in rural area. During the next 2 years FY (2024-25 to 2025-26), Ministry has a target to set-up 1.6 lakh new enterprises with employment generation potential for 12.8 lakh persons.

PMEGP Performance during the last 5 years in terms of no of Units assisted, Margin money subsidy disbursed and estimated employment generated is as per Annexure III.

Ministry of Rural Development is implementing its flagship schemeDeendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM). DAY-NRLM aims to reduce poverty by enabling poor households to access gainful self-employment and skilled wage employment opportunities resulting in sustainable and diversified livelihood options for the poor.

The Startup Village Entrepreneurship Program (SVEP) is a sub component of DAY-NRLM. SVEP aims to support entrepreneurs in rural areas to set up local enterprises. The number of enterprises supported under the Start-up Village Entrepreneurship Programme (SVEP) are as per Annexure IV.

It is expected that the supported enterprises of 3,02,825 under Start-up Village Entrepreneurship Programme have created an approximate employment of 6,26,848.

Department Science and Technology (DST), implements an umbrella program NIDHI (National Initiative for Developing and Harnessing Innovations) launched in 2016, which has various components to support innovation and entrepreneurship in academic setups. NIDHI facilitates setting up of incubation centers throughout the country, which provide handholding support to youth to become budding entrepreneurs and innovators. NIDHI support is also extended for proof of concept (PoC), prototyping, capacity building and early-stage seed fund which help in launching of new startups. This support leads to the development of indigenous technologies, which not only provide tech-based solutions/services for the benefit of the society but also lead to the economic development and employment generation in the country.

The details on the number of startups operating in the country at present, State/UT-wise in agriculture and allied sectors supported under “Innovation and Agri-Entrepreneurship Development” under Rashtriya Krishi Vikas Yojana (RKVY) is as per Annexure V.

The Government of India is committed to promote agri-startups by providing financial and technical support to agri-startups in agriculture and allied sectors. Ministry of Agriculture and Farmers’ Welfare (MoA and FW) is implementing “Innovation and Agri-Entrepreneurship Development” programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 with an objective to promote innovation and agri-entrepreneurship by providing financial and technical support for nurturing startups ecosystem in the country. So far, 5 Knowledge Partners (KPs) and 24 RKVY Agribusiness Incubators (R-ABIs) have been appointed for training and incubation of agri-startups and implementation of this programme. Under the programme, the financial support upto Rs. 5.00 lakh is provided at the idea/pre seed stage and up to Rs. 25 lakh at the seed stage to entrepreneurs/ startups in the field of agriculture and allied sector to launch their products, services, business platforms, etc. into the market and facilitate them to scale up their products and operations. Start-ups are trained and incubated by these Knowledge Partners (KPs) and RKVY Agribusiness Incubators (R-ABIs) appointed under the programme.

The agri-startups supported under the programme is providing employment generation directly or indirectly and contributing towards economic development in the country.

Start-ups, Innovation and Intellectual Property Rights (IPR) Division under the Ministry of Electronics and Information Technology (MeitY) has undertaken various initiatives and measures to promote a technology-led startups and innovation ecosystem in the country. This proactive approach builds from established best practices designed to strengthen and encourage the overall tech startup development infrastructure by overcoming persistent bottlenecks to work ground-up seamlessly. Some of the major initiatives are:

ANNEXURE I

The State/UT-wise number of DPIIT recognised startups are as under:

S. No.

State/UT

Number of DPIIT recognised startups

Andaman and Nicobar Islands

Andhra Pradesh

2,252

Arunachal Pradesh

Assam

1,318

Bihar

2,786

Chandigarh

489

Chhattisgarh

1,517

Dadra and Nagar Haveli and Daman and Diu

Delhi

14,734

Goa

520

Gujarat

11,436

Haryana

7,385

Himachal Pradesh

484

Jammu and Kashmir

855

Jharkhand

1,305

Karnataka

15,019

Kerala

5,782

Ladakh

Lakshadweep

Madhya Pradesh

4,500

Maharashtra

25,044

Manipur

151

Meghalaya

Mizoram

Nagaland

Odisha

2,484

Puducherry

152

Punjab

1,539

Rajasthan

4,960

Sikkim

Tamil Nadu

9,238

Telangana

7,336

Tripura

123

Uttar Pradesh

13,299

Uttarakhand

1,138

West Bengal

4,627

Total

1,40,803

Annexure II

The details of various programs undertaken by the Government to promote startups across the country are as under:

Annexure III

PMEGP Performance during the last 5 years in terms of no of Units assisted, Margin money subsidy disbursed and estimated employment generated are as under:

Year

No. of Units Assisted

MM Subsidy

(Rs. Crore)

Estimated Employment Generated

FY19-20

66,653

1,950.82

5,33,224

FY20-21

74,415

2,188.80

5,95,320

FY21-22

1,03,219

2,977.66

8,25,752

FY22-23

85,167

2,722.17

6,81,336

FY23-24

89,118

3,093.88

7,12,944

ANNEXURE IV

The No. of enterprises supported under the Start-up Village Entrepreneurship Programme (SVEP) (State-wise cumulative till June 2024) are as under:

S. No.

State/UT

Total Enterprises
Supported (cumulative)

Andhra Pradesh

27,631

Arunachal Pradesh

505

Assam

4,840

Bihar

25,994

Chhattisgarh

20,197

Goa

1,398

Gujarat

5,940

Haryana

9,773

Himachal Pradesh

376

10.

Jammu & Kashmir (UT)

3,476

11.

Jharkhand

25,636

12.

Karnataka

1,754

13.

Kerala

32,309

14.

Madhya Pradesh

27,607

15.

Maharashtra

7,146

16.

Manipur

1,695

17.

Meghalaya

954

18.

Mizoram

1,308

19.

Nagaland

4,118

20.

Odisha

15,043

21.

Punjab

3,007

22.

Rajasthan

11,011

23.

Sikkim

371

24.

Tamil Nadu

4,834

25.

Telangana

17,188

26.

Tripura

682

27.

Uttar Pradesh

28,014

28.

Uttarakhand

3,106

29.

West Bengal

16,912

30.

A&N

31.

Puducherry

Total

3,02,825

ANNEXURE V

S No.

States and UTs

Total number of startups

Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chhattisgarh

Goa

Gujarat

Haryana

Himachal Pradesh

10.

Jammu & Kashmir

11.

Jharkhand

12.

Karnataka

211

13.

Kerala

14.

Madhya Pradesh

15.

Maharashtra

226

16.

Manipur

17.

Meghalaya

18.

Mizoram

19.

Nagaland

20.

Odisha

21.

Punjab

22.

Rajasthan

23.

Tamil Nadu

137

24.

Telangana

25.

Tripura

26.

Uttar Pradesh

27.

Uttarakhand

28.

West Bengal

29.

Delhi NCR

30.

Andman and Nicobar

31.

Chandigarh

32.

Pondicherry

Total

1708

ANNEXURE VI

State/ UT-wise details of number of startups supported under TIDE 2.0 scheme are as under:

S. No.

Name of the State/UT

Numbers of Start-ups Supported Under TIDE 2.0 Scheme

Andhra Pradesh

Assam

Bihar

Chhattisgarh

Gujarat

104

Haryana

Himachal Pradesh

Karnataka

127

Jammu and Kashmir

10.

Kerala

11.

Madhya Pradesh

12.

Maharashtra

13.

NCT-Delhi

14.

Odisha

15.

Punjab

16.

Rajasthan

17.

Tamil Nadu

157

18.

Telangana

142

19.

Uttar Pradesh

112

20.

Uttarakhand

21.

West Bengal

Total

1235

This information was given by the Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship (MSDE), Shri Jayant Chaudhary in a written reply in the Lok Sabha today.

Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce and Industry

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