Parliament Question: Support mechanism for Startups and small enterprises

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE RAJYA SABHA UNSTARRED QUESTION NO. 3864. TO BE ANSWERED ON FRIDAY, THE 27TH MARCH, 2026. SUPPORT MECHANISM FOR STARTUPS AND SMALL ENTERPRISES 3864. SHRI SATNAM SINGH SANDHU: Will the Minister of Commerce and Industry be pleased to state: (a) the incentives and support mechanisms available to startups and small enterprises to engage in R&D activities under recently launched Research, Development and Innovation (RDI) scheme; (b) the efforts made to attract Foreign Direct Investment (FDI) in R&D and innovation sectors, and the expected impact on the Indian economy; and (c) the measures taken to protect intellectual property rights and ensure that innovations benefit the Indian economy and society? ANSWER THE MINISTER OF STATE IN THE MIN ISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA) (a): The Government has launched the Research Development and Innovation (RDI) Scheme with a corpus of Rs. 1 lakh crore. RDI Scheme aims to provide long- term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in Research and Development (R&D). The scheme has been designed to overcome the constraints and challenges in funding of private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness. The Scheme targets to de-risk private sector-led R&D and funding support to eligible technology entities including startups and Micro, Small and Medium Enterprises (MSMEs) in sunrise sectors for transformative projects at higher Technology Readiness Levels (TRL 4 and above). In case of startups, equity- based financing or loan or both cases may be considered. Under the Scheme, the funding support is generally limited to up to 50% of the assessed project cost, and the remaining amount is to be mobilised by the project proponent or from other sources. (b): To promote Foreign Direct Investment (FDI), the Government has put in place an investor friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route (without government approval). More than 90% of the FDI inflow is received under the automatic route. India continues to open up its economy to global investors by raising FDI limits, removing regulatory barriers, developing infrastructure and improving business environment.FDI policy provisions have been progressively liberalized and simplified across various sectors such as Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Power Exchanges, ecommerce activities, Coal Mining, Contract Manufacturing, Digital Media, Civil Aviation etc. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas, Telecom and Space. As a result of such Government efforts, FDI inflows have grown from USD 71.30 billion in FY 2023-24 to USD 80.62 billion in FY 2024-25 marking an increase of 13%. Further, as per the Securities and Exchange Board of India (SEBI) Annual Report 2024- 25, the Alternative Investment Funds (AIFs) market segment in India has matured significantly. Specifically, the total commitments raised by AIFs have surged from Rs. 3.7 lakh crore in 2019-20 to Rs. 13.5 lakh crore by the end of FY 2024-25. (c): The Government has taken various measures to protect intellectual property rights and ensure that innovations benefit the Indian economy and society at the grassroots. The details of the various measures are placed as Annexure-I. *******ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE RAJYA SABHA UNSTARRED QUESTION NO. 3864 FOR ANSWER ON 27.03.2026. There are several measures undertaken to protect intellectual property rights and ensure that innovations benefit the Indian economy and society at the grassroots. Details are as under: 1. Over the past decade, IP laws have been amended several times to streamline and simplify the processing of IP applications, reduce compliance burden, enhance the use of IT and digital technologies, and extend benefits to sectors critical to the Indian economy. Significant fee concessions have also been provided to sectors critical to the Indian economy to reduce the financial burden of intellectual property protection, encourage innovation, and support brand building among startups and MSMEs.  80% fee concession granted to Startups, MSMEs, and Educational Institutes for patent filing, prosecution, and maintenance  Similarly, Startups and MSMEs received fee concessions of 75% for Designs and 50% for Trade Marks 2. IP Processes have been streamlined:-  Patents Rules, 2003 have been amended to further simplify and streamline the patent procedure to create a conducive environment for innovation and protection of Intellectual Property (IP) in India  The time to submit request for examination has been reduced to 31 months from 48 months to fast-track the patent examination process,  Requirements and timelines for providing foreign filing details have been streamlined to simplify the patent application process,  ‘Certificate of Inventorship’ has been introduced to enhance patenting ecosystem in India by formally recognizing efforts of the inventors in the patented inventions; and  10% reduction in the official fee for patent renewal is available if the fees for at least four years are paid in advance through electronic mode. 3. Modernization of IP offices and use of Advanced Technologies IP Offices have been digitized and made online to make the system more compact, time bound, transparent and easier to use by applicants as well as Examiners and Registrars/ Controllers. Major initiatives are: a. IP website has been redesigned to improve contents and ease of access and make it more interactive, informative and easy to navigate. IP data on real-time basis has been made available on the website in respect of filing and processing of IP applications. The website provides login-free Search facility for hassle-free dissemination of IP information to stakeholders. b. Complete digitization of Patent & Trade Mark offices enables 24*7 Comprehensive E- filing systems, all communications are made through Emails, SMS alert facility, hearings are done through video-conferencing and certificates of grant of patents are delivered online. As a result, applicants no longer need to visit the IP office for filing and processing of their patent & trade mark applications, with more than 95% of Patent and Trademark applications now filed online.c. AI-powered Trademark Search Technology: Artificial Intelligence (AI) and Machine Learning (ML) based Trademark Search Technology has been introduced for a more efficient and accurate examination and faster disposal of Trade Mark applications. d. IP Sarthi Chatbot: A digital assistant has been designed to provide instant support and guidance to users navigating the IP registration processes. Indian small businesses can get instant help regarding IPR by asking answers of the questions on the Chatbot. 4. Strengthened Global IP Collaboration a. The Office of the CGPDTM in partnering with the WIPO regularly organizes Patent Cooperation Treaty (PCT) Roving Seminars in India to promote the awareness in respect of protecting the intellectual property and innovations globally through Patent Cooperation Treaty (PCT). b. In collaboration with WIPO and the Office of the Controller General of Patents, Designs and Trade Mark, the National Law University (NLU) Delhi has introduced a specialized Master’s program in Intellectual Property Rights (IPR) Laws to foster global IP expertise and strengthen India’s IP ecosystem through WIPO’s active engagement. c. “WIPO IP Diagnostics – Indian Adaptation”, a self-assessment tool, has been designed to enable small businesses to conduct a self-assessment of their intellectual property (IP) assets, providing guidance tailored to the Indian IP laws and procedures and enriched with local examples. By answering targeted questions, Indian small businesses can generate customized reports that offer insights into how India's IP system can support their strategic business objectives. For wider coverage, the tool has been made available multiple languages, English, Bengali, Hindi, Tamil, and Urdu. 5. IP Awareness: The Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM) implements the National Intellectual Property Awareness Mission (NIPAM) to conduct IP awareness programs in educational institutions. 6. National Intellectual Property (IP) Awards are conferred every year to recognize and reward the top achievers comprising individuals, institutions, organizations and enterprises, startup and MSMEs for their IP creations and commercialization, which have contributed towards strengthening IP eco-system in the country and in encouraging creativity and innovation. 7. SIPP Scheme: The Start-Ups Intellectual Property Protection (SIPP) scheme launched in 2016 to provide pro bono facilitation to startups for the filing and processing of patent, trademark, and design applications. Under this scheme, the Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM) bears the professional fees payable to facilitators. 8. Robust Grievance Redressal Mechanism: The IP Office has robust Redressal Mechanism which has been further strengthened to ensure the prompt, fair, and transparent resolution of complaints and concerns. Daily Open House Conference has been started to enable direct daily communication of stakeholders with senior officers to provide timely solutions to their problems and Open House IT Helpdesk has been created as a single-window platform to swiftly address queries and grievances across all key areas of Intellectual Property. 9. Manpower augmentation, expanding knowledge capacity & Skill Building: The sanctioned strength of Patent Examiners and Controllers has been increased to 1,433 as on 31.01.2026. To promote the study, research and development of IPR in higher education institutions, IPR Chairs have been set up across the country under the Scheme for Pedagogy & Research in IPRs for Holistic Education and Academia (SPRIHA). Currently, 39 IPR Chair are established under SPRIHA.10. Commercialization of IP: Technology Innovation Support Centres (TISC) have been set up in various Central and State Universities and State Council for Science & Technology across the country for supporting IPR education, boosting IP filings and enhancing IP commercialization. The network has been further expanded with 22 new TISCs across 20 states in the country. 11. As a result of above measures, overall filing in last 05 years of Patents by Startups and MSMEs have increased significantly:- Financial Year All categories Startup Small Entity 2020–21 58,502 1611 797 2021–22 66,440 1501 1369 2022–23 82,811 2041 1758 2023–24 92,168 2571 3549 2024–25 1,10,375 2704 2747 Source: Annual Report of O/o CGPDTM 2024-25 ******