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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 2594.
TO BE ANSWERED ON TUESDAY, THE 04TH AUGUST, 2026.
CREDIT GUARANTEE SCHEME FOR STARTUPS AND SISFS
2594. SHRI DUSHYANT SINGH:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) the measures taken by the Government to ensure that the benefits of the
Startup India initiative, including the Credit Guarantee Scheme for Startups and
the Startup India Seed Fund Scheme (SISFS), effectively reach startups in Tier-
II and Tier-III cities in the country including districts such as Jhalawar-Baran in
Rajasthan;
(b) whether any specific strategies have been adopted by the Government to
address challenges such as limited access to finance, mentorship and
infrastructure in these regions, if so, the details thereof;
(c) the steps being taken by the Government to promote job creation through
startups in sectors beyond technology, with a view to encouraging diversified
employment and sustainable economic growth; and
(d) the manner in which the measures are being tailored to meet the specific needs
of startups in smaller cities and towns and the support mechanisms in place to
ensure their long-term viability and growth?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a): Startup India initiative was launched on 16th January 2016, with an intent to
build a strong ecosystem for nurturing innovation, startups and encouraging
investments in the startup ecosystem of the country.
The Government is implementing the Startup India Seed Fund Scheme (SISFS)
and Credit Guarantee Scheme for Startups (CGSS) under the Startup India
initiative to support startups at various stages of their business cycle.
SISFS provides financial assistance to seed-stage startups through incubators.
SISFS is implemented from 1st April 2021. The Experts Advisory Committee
(EAC) of SISFS evaluates and selects incubators for allocation of funds. The
approved incubators select startups in accordance with the guidelines. Funds
under this Scheme are released to the incubators in milestone-based
installments. For the purpose of seeking milestone-based installments,
incubators submit detailed report on status of utilization of funds and audited
expenditure. The EAC monitors the performance of the incubators and fundingto startups from time to time. The operational guidelines of the Scheme are
accessible at:
https://www.dpiit.gov.in/static/uploads/2025/07/eaf3e3bdae9f4d657117f18f6c91780a.pdf
Specifically in the State of Rajasthan, incubators supported under the Scheme
have selected 169 startups with approved funding of Rs. 27.56 crore as on 30th
June 2026. Further, incubators under the Scheme have selected 1 startup each
from the districts of Baran and Jhalawar, with approved funding of Rs. 15 lakh
each.
CGSS is implemented to enable credit access through debt funding to
startups through eligible financial institutions [Member Institutes (MIs)].
CGSS is operationalized by the National Credit Guarantee Trustee Company
(NCGTC) Limited and has been operationalized from 1st April 2023. The MIs
evaluate credit applications by using prudent banking judgement and due
diligence in selecting commercially viable proposals and conduct the account
of the borrowers with banking prudence. The MIs are governed by the
financial institutions norms, monitoring and procedures as laid down by the
Reserve Bank of India [in case of banks, Non-Banking Financial Companies
(NBFCs) and Financial Institutions] and Securities Exchange Board of India
(SEBI) [in case of Alternative Investment Funds]. The operational guidelines
for CGSS are accessible at:
https://www.ncgtc.in/en/product-details/CGSS/Credit-Guarantee-Scheme-for-
Start-ups-(CGSS)
Specifically, in the State of Rajasthan, 6 loans amounting to Rs 28.10 crore have
been guaranteed to startup borrowers from Jaipur and Udaipur as on 30th June
2026.
Further, the selected incubators under the SISFS and the network of Member
Institutes under the CGSS are spread across the country, enabling effective
reach of the Schemes across Tier-II and Tier-III cities as well.
(b): The Government is undertaking several measures to enable access to finance,
mentorship and infrastructure across the country, including in Tier II and Tier III
cities. Details of such measures are placed as Annexure-I.
(c): Under the Startup India initiative, the Government constantly undertakes various
efforts for the development and growth of startup ecosystem and to enhance job
creation in the country.
As a result, a total of 2,40,092 entities have been recognised as startups by
DPIIT as on 30th June 2026. These recognized startups have reportedly
created over 24.62 lakh direct jobs across more than 55 varied industries which
include areas beyond technology as well. The industry-wise list of direct jobs
created by recognized startups (self-reported) is placed as Annexure-II.
(d): The programs under the Startup India initiative are implemented on a Pan-India
basis with certain specific outreach and awareness measures for Tier-II and
Tier-III cities. Such measures inter-alia include capacity building and
handholding, ecosystem development and international exposure programs.
The details of such measures are placed as Annexure-III.
*******ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA
UNSTARRED QUESTION NO. 2594 FOR ANSWER ON 04.08.2026.
Measures undertaken by the Government to enable access to finance, mentorship
and infrastructure across the country including in Tier-II and Tier-III cities:
1. The Ministry of Skill Development and Entrepreneurship (MSDE) through its
autonomous organizations, namely National Institute for Entrepreneurship and
Small Business Development (NIESBUD) and Indian Institute of
Entrepreneurship (IIE) has taken various initiatives to promote
entrepreneurship development amongst all sections of the society. These
initiatives include, Swavalambini programme, Entrepreneurship Awareness
Programmes (EAP), Entrepreneurship Development Programmes (EDP),
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyaan (PMJANMAN),
Entrepreneurship Development Centres (EDC) in North East Region’s
Educational Institutions, Dharti Aaba Janjatiya Gram Utkarshh Abhiyan
(DAJGUA), Pradhan Mantri Surya Ghar Muft Bijli Yojana Scheme (PM SGMBY
Scheme), and Capacity Building Programme for Fair Price Shop Owners.
2. Ministry of Micro Small & Medium Enterprises (MSME) is implementing the
Entrepreneurship and Skill Development Programme (ESDP) which aims to
motivate the youth/aspiring entrepreneurs to consider self-employment or
entrepreneurship as one of the career options.
3. The Atal Innovation Mission (AIM) of NITI Aayog fosters innovation and
entrepreneurship among India’s youth through flagship programs like Atal
Tinkering Labs (ATLs) and the Community Innovator Fellowship (CIF). Atal
Incubation Centres (AICs) incubation facilities and Atal Community Innovation
Centres (ACIC) are established under AIM to nurture innovative startup
businesses and serve the unserved/underserved areas of the country with
respect to the startup and innovation ecosystem. Further, programmes such as
Mentor India under Atal Innovation Mission (AIM) and Women
Entrepreneurship Platform, are connecting startups and aspiring entrepreneurs
with mentors.
4. The Ministry of Education’s Innovation Cell (MIC) and All India Council for
Technical Education (AICTE) promotes innovation and entrepreneurship
across educational institutions.
5. Youth-centric initiatives have been introduced by the Ministry of Youth Affairs
and Sports such as setting up of the autonomous body called Mera Yuva Bharat
(MY Bharat), the purpose of it, is to provide an over-arching institutional
mechanism powered by technology for youth development and youth-led
development through Experiential Learning Programs (ELPs), volunteering
opportunities, mentorship programme, etc.
6. Under the Ministry of Defence the Scheme for Innovations for Defence
Excellence (iDEX) and Acing Development of Innovative Technologies with
iDEX (ADITI) are fostering innovation and technology development in defence
and aerospace by engaging startups.
7. Under the Department of Science & Technology, the Research, Development,
and Innovation (RDI) Scheme has been approved to incentivize private sector
participation in research and development (R&D). Further, DST is implementing
the National Initiative for Developing and Harnessing Innovations (NIDHI) to
promote innovation and entrepreneurship among the youth. The initiativecomprises NIDHI-PRAYAS (prototype grant support), NIDHI-EIR
(Entrepreneur-in-Residence fellowships), NIDHI-iTBI (Inclusive TBIs in Tier-II
and Tier-III regions). The DST is also implementing the National Quantum
Mission (NQM), under which four thematic hubs (T-Hubs) have been
established.
8. The Anusandhan National Research Foundation (ANRF) has initiated the
program, Mission for Advancement in Highimpact Areas (MAHA) to address
priority-driven, solution-focused research in mission-mode.
9. The Department of Biotechnology (DBT) has established biotechnology
incubation and pre-incubation centres across States & Union Territories (UTs)
under the BioNEST (Bioincubators Nurturing Entrepreneurship for Scaling
Technologies) and EYUVA (Encouraging Youth for Undertaking Innovative
Research Activities) schemes.
10. Ministry of Electronics and Information Technology (MeitY) is undertaking
initiatives such as GENESIS (Gen-Next Support for Innovative Startups)
Scheme, TIDE 2.0 (Technology Incubation and Development of Entrepreneurs)
Scheme, and IndiaAI Mission to promote the startup ecosystem.
11. Under the Ministry of Rural Development, the Deendayal Antyodaya Yojana-
National Rural Livelihoods Mission (DAY-NRLM) through Start-up Village
Entrepreneurship Programme (SVEP) supports Self-Help Groups (SHGs) and
their family members to set-up small enterprises in the nonfarm livelihoods
sector.
12. The Department of Agriculture & Farmers’ Welfare (DA&FW), Government of
India is implementing “Innovation and Agri-Entrepreneurship Development”
programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19
onwards with an objective to promote innovation and agri-entrepreneurship by
providing financial support and nurturing an incubation ecosystem in the
country.
13. The Government is undertaking taking various measures under the Startup
India initiative. The flagship Schemes namely, Fund of Funds for Startups
(FFS), Startup India Fund of Funds 2.0, Startup India Seed Fund Scheme
(SISFS) and Credit Guarantee Scheme for Startups (CGSS) support startups
across sectors at various stages of their business cycle. The Government also
implements periodic exercises and programs including States’ Startup Ranking,
National Startup Awards, Innovation Week, and TEJAS (Transforming
Entrepreneurial Journeys Across States & Districts) which play an important
role in the holistic development of the startup ecosystem including non-metro
and rural startup ecosystems. The Government also encourages and supports
ecosystem led initiatives such as Startup Mahakumbh which serve as a vibrant
platform for stakeholders to network and collaborate. Initiatives to improve
market access and enable public procurement also support startups in growing
and scaling up their businesses. The Government has also taken various
measures to enhance ease of doing business including starting up of business,
raising capital, and reducing compliance burden to simplify the regulatory
environment and create a conducive business environment. Activities to
encourage corporates to support startups by way of mentorship, access to
infrastructure, sharing resources and knowledge, assistance in market
linkages, and investor connect are also undertaken.
14. To strengthen international linkages and enable global market access for Indian
startups, the Government facilitated participation of startups in major
international innovation platforms such as Bharat Innovates 2026 and VivaTech2026. Bharat Innovates 2026, organised in Nice, France as part of the
India–France Year of Innovation, enabled Indian startups to showcase
innovations, participate in over 1,350 B2B meetings, and forge more than 50
collaborations with global partners, creating opportunities for startup
acceleration, research partnerships, technology commercialisation and market
access. Similarly, at VivaTech 2026, where India participated as the AI Country
Partner with its largest-ever delegation of over 80 deep-tech startups,
Indian startups showcased innovations across emerging technology sectors
and engaged with global investors, technology leaders and businesses,
strengthening cross-border collaborations and expanding international market
opportunities.
*******ANNEXURE-II
ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA
UNSTARRED QUESTION NO. 2594 FOR ANSWER ON 04.08.2026.
Industry-wise details of direct jobs created by entities recognised as startups by DPIIT
as of 30th June 2026 (self-reported):
S. No. Industry Number of direct jobs created
1. Advertising 16,913
2. Aeronautics Aerospace & Defence 21,402
3. Agriculture 119,311
4. AI 54,149
5. Airport Operations 1,403
6. Analytics 12,187
7. Animation 2,674
8. AR VR (Augmented + Virtual Reality) 7,360
9. Architecture Interior Design 15,675
10. Art & Photography 6,378
11. Automotive 56,467
12. Biotechnology 6,517
13. Chemicals 26,015
14. Computer Vision 3,434
15. Construction 149,325
16. Dating Matrimonial 1,046
17. Design 12,820
18. Education 123,930
19. Enterprise Software 35,241
20. Events 8,889
21. Fashion 37,454
22. Finance Technology 81,139
23. Food & Beverages 151,875
24. Green Technology 38,498
25. Healthcare & Lifesciences 212,510
26. House-Hold Services 25,377
27. Human Resources 116,124
28. Indic Language Startups 4,714
29. Internet of Things 18,825
30. IT Services 292,226
31. Logistics 18,583
32. Marketing 38,668
33. Media & Entertainment 29,606
34. Nanotechnology 2,322
35. Non- Renewable Energy 15,498
36. Other Specialty Retailers 23,699
37. Others 28,382
38. Passenger Experience 403
39. Pets & Animals 4,620
40. Professional & Commercial Services 133,486
41. Real Estate 23,711
42. Renewable Energy 67,131
43. Retail 50,291
44. Robotics 8,63345. Safety 12,286
46. Security Solutions 48,635
47. Social Impact 15,386
48. Social Network 6,402
49. Sports 10,088
50. Technology Hardware 76,067
51. Telecommunication & Networking 21,813
52. Textiles & Apparel 59,332
53. Toys and Games 6,870
54. Transportation & Storage 39,856
55. Travel & Tourism 38,126
56. Waste Management 22,817
TOTAL 24,62,589
**********ANNEXURE-III
ANNEXURE REFERRED TO IN REPLY TO PART (d) OF THE LOK SABHA
UNSTARRED QUESTION NO. 2594 FOR ANSWER ON 04.08.2026.
The details of various measures being undertaken to ensure that the benefits of the
Startup India initiative are effectively reaching startups across the country:
1. Capacity Building and Handholding
Capacity building workshops are undertaken throughout the year across regions including
non-metro cities under the States’ Startup Ranking (‘SRF’) exercise to promote and handhold
States and UTs in developing regional ecosystems. Monitoring, capacity development, and
handholding sessions are also conducted specifically for incubators beyond metro cities and
regions.
2. Outreach and Awareness
Outr each and awareness activities for startups are organized across the country including in
areas beyond metropolitan cities. These activities include encouraging entrepreneurs from
non-metropolitan cities and enabling opportunities for funding, incubation, mentorship and
business linkages in collaboration with State/UT administrations. Various startup showcases
are also organised where startups pitch their business proposals to investors and participate
in capacity building activities. The programs implemented under the Startup India initiative are
also propagated through various social media platforms.
3. Ecosystem Development Events and Programs
Various national ecosystem development events and programs are held such as the Startup
Mahakumbh, which fosters innovation and entrepreneurship by bringing the ecosystem
together from various parts of the country; ASCEND (Accelerating Startup Caliber &
Entrepreneurial Drive) sensitization workshops on startups and entrepreneurship are
conducted across North Eastern States to support upcoming entrepreneurs from the region;
and the Startup India Innovation week is held around the National Startup Day i.e., 16th
January, to celebrate entrepreneurship and promote innovation with stakeholders from across
India. Further, the TEJAS (Transforming Entrepreneurial Journeys Across States & Districts)
initiative seeks to strengthen district-level startup ecosystems.
4. International Exposure and Linkages
International linkages are developed through international Government to Government
partnerships, participation in international forums, hosting of global events, and international
bridges with different countries that aid in promoting cross collaboration.
5. Encouraging Ecosystem Collaboration
The Government launched the Startup India Hub portal for stakeholders of the entrepreneurial
ecosystem in India to discover resources, information, and various benefits under the Startup
India initiative on a common digital platform. This portal enables various programs and
initiatives to be accessed digitally, improving accessibility for entrepreneurs and startups even
from non-metro cities and regions.
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