Parliament Question: Status of the Start-up India Scheme

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 3888. TO BE ANSWERED ON TUESDAY, THE 12TH AUGUST, 2025. STATUS OF THE START-UP INDIA SCHEME 3888. SHRI PARSHOTTAMBHAI RUPALA: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) the progress made under the Start-up India initiative, including the number of start-ups recognized and the benefits availed by them; (b) the details of funding opportunities provided to startups, including the Start-up India Seed Fund Scheme and the Fund of Funds for Start-ups; (c) the measures taken to promote entrepreneurship among youth, women and marginalized communities, including the Credit Guarantee Scheme and Stand Up India Scheme; (d) the number of jobs created and the economic impact of the start-ups supported under the initiative; and (e) the steps taken to address the challenges faced by start-ups, including regulatory and policy issues? 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): Since the launch of the Startup India initiative, number of entities recognized as startups by Department for Promotion of Industry and Internal Trade (DPIIT) has increased from around 500 in 2016 to 1,80,683 as on 30th June 2025. Under Startup India initiative, the Government is implementing 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 at various stages of their business cycle. FFS has been established to catalyze venture capital investments and is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs) which in turn invest in startups. AIFs supported under the Scheme have invested Rs. 23,679 crore in 1,282 startups as on 30th June 2025.SISFS provides financial assistance to seed stage startups through incubators. The incubators supported under the Scheme have selected 2,942 startups for a total approved funding of Rs. 522.42 crore as on 30th June 2025. CGSS is implemented for enabling collateral free loans to startups through eligible financial institutions. CGSS is operationalized by the National Credit Guarantee Trustee Company (NCGTC) Limited and has been operationalized from 1st April 2023. As on 30th June 2025, 289 loans amounting to Rs. 667.85 crore have been guaranteed for startup borrowers. (c): Government has implemented various measures/schemes across the country to promote entrepreneurship among the youth, women and marginalized communities, including measures under Credit Guarantee Scheme for Startups (CGSS) and Stand-up India Scheme. Details of such initiatives are placed as Annexure-I. (d): Since the launch of Startup India initiative in 2016, entities recognised as startups by DPIIT have created over 19.5 lakh direct jobs as on 30th June 2025. As a result of sustained efforts under Startup India initiative, entities recognised as startups are present in every State/Union Territory (UT) of the country. Further, of the total entities recognized as startups, more than 45% have at least one-woman director/partner as on 30th June 2025. As per impact assessments of Schemes under Startup India initiative - FFS and SISFS, supported startups have reported improvement in economic areas such as revenue, and employment generation. Further, capacity building of investors has been enabled and startups from a wide variety of sectors have been supported. (e): For simplifying and streamlining business regulations and fostering ease of doing business across the country, the Government is undertaking various measures through initiatives such as Business Reform Action Plan, Jan Vishwas, and Reducing Compliance Burden on Businesses and Citizens. These measures include simplification of procedures related to applications, renewals, inspections, filing records, etc.; rationalization by repealing, amending or subsuming redundant laws, digitization by creating online interfaces eliminating manual forms and records, and decriminalization of minor technical or procedural defaults. Specifically for the startup ecosystem, the Government has taken more than 60 measures to enhance ease of doing business, raising capital and reducing compliance burden. These measures include profit linked deductions under Section 80-IAC of the Income Tax Act 1961, relaxation in compliances, carry- forward of losses, fast-track approval process for in-bound mergers, faster-exit provisions, relaxation in public procurement, etc. ********ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 3888 FOR ANSWER ON 12.08.2025. I. Key measures to promote entrepreneurship including for the youth and marginalized communities: 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 Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) Scheme, Project Swavalambini, Skill Strengthening for Industrial Value Enhancement (STRIVE), Entrepreneurship Awareness Programmes (EAP), Entrepreneurship Development Programmes (EDP), Faculty Development Programmes (FDP), Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyaan (PM-JANMAN), Entrepreneurship Development Centres (EDC) in North East Region’s Educational Institutions, and Udyam Disha – Mentor Platform. 2. Under the Government’s Skill India Mission (SIM), MSDE provides skill, re-skill and up-skill training through an extensive network of skill development centres/ institutes etc. under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS), National Apprenticeship Promotion Scheme (NAPS) and Craftsman Training Scheme (CTS) through Industrial Training Institutes (ITIs), across the country. 3. 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 non-farm livelihoods sector. 4. Under Startup India initiative, the flagship funding schemes, (FFS, SISFS, and CGSS), States’ Startup Ranking Framework exercise, National Startup Awards, events such as Innovation Week and Startup Mahakumbh, digital platforms such as the Startup India portal and BHASKAR, activities to encourage corporates to supporting startups by way of mentorship, access to infrastructure, sharing resources and knowledge, assistance in market linkages and investor connect and district outreach programs are undertaken to encourage grassroots innovation and setting up of startups across the country by entrepreneurs. 5. The Ministry of Education’s Innovation Cell (MIC) and All India Council for Technical Education (AICTE) promotes innovation and entrepreneurship across educational institutions. 6. 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.7. The Ministry of Minority Affairs (MoMA) implements various skill development schemes namely ‘Seekho Aur Kamao’, ‘Upgrading the Skills and Training in Traditional Arts/Crafts for Development (USTTAD)’, ‘Nai Roshni’ and ‘Nai Manzil’ for socio-economic development of youth from minority communities. These schemes and initiatives have now been converged into an integrated Scheme called ‘Pradhan Mantri Virasat Ka Samvardhan’ (PM VIKAS). 8. The Stand-up India Scheme was launched with an objective to provide loans from Scheduled Commercial Banks (SCBs) of value between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a greenfield enterprise in the manufacturing, services or trading sector and also for activities allied to agriculture. II. Key measures to support women-led startups and promote inclusive entrepreneurship: 1. Women-led applicants are incentivized under the flagship schemes of Fund of Funds for Startups (FFS) and Credit Guarantee Scheme for Startups (CGSS). 2. Capacity building programs such as the Women Capacity Development Programme (WING), Virtual Incubation Programs, Startup Learning Program for Women in Technology, Accelerating Women Entrepreneurs Program support women-led startups and women entrepreneurs in their startup journey. 3. Outreach and awareness measures include a dedicated webpage on Startup India Hub portal detailing Government measures, Accelerating Startup Calibre & Entrepreneurial Drive (ASCEND) Startup Workshop Series for north-eastern region, SuperStree Podcast, Women for Startups workshops with States/UTs, and information dissemination through various media platforms to reach women-led startups and entrepreneurs across the country. 4. Women-led startups and entrepreneurs are also recognised for their progress and achievements through measures and initiatives such as interaction of women entrepreneurs with the Hon’ble President of India, specific provisions in the States’ Startup Ranking exercise to encourage support for women-led startups in States/UTs and special category for women-led startups in National Startup Awards (NSA). 5. Apart from the above-mentioned measures and as detailed in Part I. of the Annexure, other Ministries and Departments have also implemented programmes and initiatives to support women entrepreneurship such as Digital Marketing and Entrepreneurship Development for Women Self Help Groups (WSHGs), Adivasi Mahila Sashaktikaran Yojana (AMSY), Women Entrepreneurship Development Programme (WEDP), Science and Technology for Women (STW) programme, Swavalambini – Women Entrepreneurship Programme, Women Entrepreneurship Platform (WEP), Skill Upgradation and Mahila Coir Yojana, etc. *******