Centre Allocates Rs 580 Cr in Funding to Over 10K Startups in Five Years
In a significant boost to the entrepreneurial ecosystem in India, the Union government has successfully empowered over 10,000 technology startups across the country through various schemes over the past five years. This achievement was highlighted in a written reply to a question in the Rajya Sabha by Jitin Prasada, the Minister of State for Electronics & Information Technology.
A total of Rs 580 crore in funding was allocated to these startups through incubators, with more than 3,600 tech startups receiving support from the Ministry of Electronics and Information Technology (MeitY) alone, amounting to Rs 212 crore in disbursed funds.
Flagship Schemes under Startup India Initiative
The government rolled out several flagship schemes under the Startup India initiative to bolster the startup ecosystem. These include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). These schemes were instrumental in enabling startups to attract investments from angel investors or venture capitalists, or to seek loans for their ventures.
According to Prasada, these efforts have culminated in over 1.43 lakh startups currently operating across India, recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
MeitY’s Initiatives for Startups
Under MeitY’s umbrella, several initiatives have been introduced to foster innovation and entrepreneurship. These include:
- Technology Incubation and Development of Entrepreneurs (TIDE 2.0)
- Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH)
- Next Generation Incubation Scheme (NGIS)
- Domain-specific Centres of Excellence (CoEs)
- Theme-based Incubation Centre
Launched in 2019, TIDE 2.0 aims to provide financial and technical backing to institutes of higher learning and top R&D organisations, with a budget of Rs 264.62 crore slated over five years.
The SAMRIDH program extends support to accelerators, offering them services to startups along with matching funding of up to Rs 40 lakh.
With a focus on supporting tech startups in Tier-2 and Tier-3 cities, the NGIS Scheme is designed to assist 300 startups over three years, with a total budget of Rs 95.03 crore.
Furthermore, MeitY has operationalized 42 CoEs to advance India’s status as an innovation hub in emerging technologies. These centres span various domains, propelling India’s journey towards becoming a leader in technology and innovation.
Additionally, the initiative has led to the establishment of entrepreneur parks through collaboration with institutions like STPI New Delhi, Makers Village in Cochin, Kerala, IIIT-Patna, and IIT-Hyderabad. These parks focus on sectors such as medical electronics and Fabless chip design, aiming to foster an environment of innovation-led electronic system and design manufacturing.
In conclusion, the concerted efforts by the Union government and MeitY in empowering startups with substantial funding and comprehensive support through various schemes and initiatives underline India’s commitment to nurturing innovation and technological advancement. This concerted push is poised to position India as a global powerhouse in technology and entrepreneurship.
