Parliament Question: Implementation of Startup Initiative India

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 4048. TO BE ANSWERED ON TUESDAY, THE 17TH MARCH, 2026. IMPLEMENTATION OF STARTUP INITIATIVE INDIA 4048. SHRI RAJKUMAR ROAT: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) the number of startups that have applied under the Startup India initiative, through NITI Aayog and the Department of Science and Technology (DST) during the last five years; (b) the number of startups have received financial assistance thereunder and the extent of variation, if any, between the funds displayed on the websites of incubators and the actual funds available with them; (c) whether many startups, despite being eligible, are not provided an opportunity to present their ideas and that their applications are rejected without being heard, if so, the details thereof; (d) whether no clear reasons are communicated for such rejection and no effective appellate mechanism is available, if so, the details thereof; (e) whether in the absence of a recognized incubation centre in the Banswara- Dungarpur region, the youth are being deprived of the benefits of Government schemes, if so, the details thereof; and (f) whether the Government proposed to ensure that every eligible startup is provided at lest one fair pitching opportunity, to mandate public disclosure of funds availability by incubators to establish a transparent appellate mechanism, and to setup an authorized incubation centre in the Banswara-Dungarpur region, if so, the timeline therefor and if not, the reasons therefor? 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) & (b): 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. In the last five years viz. 2021, 2022, 2023, 2024 and 2025, 1,65,443 entities have been recognized as startups by the Government.Under the Startup India initiative, the Government is implementing three flagship Schemes, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) to provide funding opportunities and support startups across sectors at various stages of their business cycle. Under FFS, supported AIFs have invested around Rs. 20,837 crore in 995 startups, in the last five years viz. 2021, 2022, 2023, 2024 and 2025. Under SISFS, supported incubators have approved around Rs. 591 crore to 3,268 startups in the last five years viz. 2021, 2022, 2023, 2024 and 2025. CGSS has been operationalized from 1st April 2023. In the last three years, viz. 2023, 2024 and 2025, startups have been guaranteed 334 loans amounting to around Rs. 808 crore under CGSS. With regard to applications received under programmes implemented by NITI Aayog and the Department of Science and Technology (DST), under the Atal Research and Innovation for Small Enterprises (ARISE) – Atal New India Challenge (ANIC) programme of NITI Aayog, 405 startup applications have been received during the last five years. Of these, 102 applications were received under ANIC 1.0 and 303 applications under ANIC 2.0. Further, the Department of Science and Technology (DST), through the National Initiative for Developing and Harnessing Innovations (NIDHI) programmes, has received a large number of applications from innovators and startups. Under NIDHI-PRAYAS, around 20,000 applications have been received so far through 57 incubators. (c) & (d): Selection of startups for funding and support under Schemes of Startup India is undertaken through structured evaluation mechanisms defined in the respective Scheme guidelines. Under FFS, AIFs approach SIDBI for investment. The AIF proposal is then placed before the Venture Capital Investment Committee (VCIC) for its recommendation. AIFs are pooled investment vehicles which raise funds from investors/ contributors and invest, inter-alia, in securities of unlisted companies such as startups as per their investment methodologies and in line with the guidelines of the scheme as available online at https://www.dpiit.gov.in/offerings/schemes-and-services/details/startup-india- initiative-MTMzYDNtQWa. Under SISFS, the Experts Advisory Committee (EAC) is responsible for the overall execution and monitoring of SISFS. The EAC evaluates and selects incubators for allocation of funds under the Scheme. Each selected incubator has an Incubator Seed Management Committee (ISMC), consisting of experts that evaluates and selects startups for seed support. ISMC determines the quantum and kind of funding (in accordance with the guidelines of SISFS) to eligible startups. Under CGSS, the Management Committee (MC) is responsible for reviewing, supervising and monitoring the functioning of CGSS. The MC is fullyempowered to appraise the performance of the scheme. The MIs evaluate credit applications by using prudent banking judgement and use their business discretion / due diligence in selecting commercially viable proposals and conduct/monitor the account(s) of the borrowers with normal banking prudence, as outlined in Scheme guidelines as available online at: https://www.ncgtc.in//content/products/0/20250509/Gazette_Notification_CGSS _8th_May_2025_44e1a2d0dc.pdf Any grievances raised by startups, including those related to the evaluation of applications, are examined by the relevant stakeholder or the concerned implementing agency. Further, grievances related to the schemes raised through the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) are also examined, and appropriate actions are taken as per the extant processes/guidelines of CPGRAMS. (e) & (f): All programs and Schemes under the Startup India initiative, including FFS, SISFS and CGSS, are implemented on a pan- India basis with multiple specific outreach and awareness measures undertaken to expand coverage. Further, as detailed in parts (c) & (d) above, each Scheme has a structured framework, operational guidelines, and redressal mechanisms to provide fair opportunities to all startups from across the country. Specifically for incubation, under SISFS, applicants can apply for seed fund from any three incubators selected as disbursing partners for the scheme in order of their preference, irrespective of the location of the incubator. The Government also implements periodic exercises and programs, including States’ Startup Ranking, National Startup Awards, and Innovation Week, which play an important role in the holistic development of the startup ecosystem across regions. The Government also encourages and supports ecosystem-led initiatives such as Startup Mahakumbh, which serves as a vibrant platform for stakeholders to network and collaborate. Initiatives to improve market access and enable public procurement support startups in growing and scaling up their businesses. These measures are complemented by regulatory reforms and other ecosystem development events and programs. Specific measures undertaken to promote the startup ecosystem across States/Union Territories (UTs), including districts in Rajasthan, are placed as Annexure-I. As a result of such initiatives, in the State of Rajasthan, 7,698 entities have been recognized as startups by the Government as on 31st January 2026. Specifically, 35 startups have been recognized from the district of Banswara, and 26 startups have been recognized from the district of Dungarpur as on 31st January 2026. *******ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PARTS (e) & (f) OF THE LOK SABHA UNSTARRED QUESTION NO. 4048 FOR ANSWER ON 17.03.2026. The details of various measures being undertaken to promote the startup ecosystem across the country are as follows: 1. Capacity Building and Handholding Capacity building workshops are undertaken throughout the year across regions including nonmetro 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. Various other startup workshops and demos are organized to handhold startups to access the flagship schemes and challenges launched under Startup India. 2. Outreach and Awareness Outreach 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. 4. International Exposure and Linkages The Startup20 Engagement Group was institutionalised under India’s G20 Presidency to facilitate harmonisation and cross collaboration amongst the largest global economies. The meetings and engagements of Startup20 Engagement Group under India’s G20 Presidency were held across the country providing access to global market, visibility and resources of India’s regionals startup ecosystems. International linkages are further 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 nonmetro cities and regions. *******