Govt Aided Over 10K Tech Startups With INR 530 Cr Funding In Past 5 Years: MoS IT
India, recognized for harboring the third-largest startup ecosystem globally, has made significant advancements in nurturing tech startups, with 116 unicorns and 112 soonicorns calling it home. The government’s proactive approach in supporting these emerging businesses has been pivotal in sustaining this growth.
In a detailed update to the Parliament, the Minister of State for Electronics and Information Technology, Jitin Prasada, highlighted the government’s concerted efforts in backing more than 10,000 tech startups over the last five years. The initiatives under various schemes and programs have led to a total funding disbursement of INR 580 Cr through incubators, demonstrating the government’s commitment to fostering innovation and entrepreneurship in the country. Notably, the Ministry of Electronics and Information Technology (MeitY) itself has supported over 3,600 tech startups, contributing INR 212 Cr of the total funding.
As of July 31, the Department for Promotion of Industry and Internal Trade (DPIIT) has brought 1.43 Lakh startups under its recognition. This marks a slight increase from the 1.4 Lakh startups acknowledged in June, underscoring the steady growth of the startup landscape in India. Furthermore, the government shared that the startups registered with the DPIIT have been instrumental in generating over 15.5 Lakh direct jobs, showcasing the significant role these companies play in the country’s economy.
The Startup India initiative, launched by the central government, has been a cornerstone in this developmental journey. It has introduced several flagship schemes aimed at aiding young businesses through various stages, including fund-raising from investors or financial institutions. Among these, the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) scheme stands out, having established 51 TIDE 2.0 Incubation Centres, providing startups with the much-needed financial and technical support.
Other notable government schemes aimed at bolstering the entrepreneurial spirit include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). These initiatives reflect the government’s dedication to creating a conducive environment for startups to thrive, innovate, and contribute to the economy.
In a recent move, acknowledging the evolving needs of the startup ecosystem, Finance Minister Nirmala Sitharaman announced several measures to bolster the sector. The abolition of the controversial angel tax, establishment of an INR 1,000 Cr VC fund for the space economy, reduction of TDS for ecommerce platforms, and the creation of ecommerce export hubs in PPP model were among the key announcements aimed at supporting startups in their future endeavors.
With these comprehensive strategies and continuous government support, India’s startup ecosystem is poised for sustained growth and innovation. The creation of direct jobs and the development of a robust digital infrastructure underscore the significant impact of these startups on the nation’s economy and its positioning on the global stage.
The journey of Indian startups from fledgling businesses to becoming global unicorns and soonicorns illustrates the potential of the entrepreneurial spirit when backed by supportive policies and initiatives. As these startups continue to chart their paths to success, they not only contribute to economic growth but also bring about societal improvements through innovation and technology. With the government’s steadfast support, the future of India’s startup ecosystem looks brighter than ever.
