Startup India: A Governmental Startup Support System

Startup India: A Governmental Startup Support System


Startup India is a flagship initiative started by Indian Government to support startups ideas at the initial level. The intention is to build a strong ecosystem for nurturing innovations and Startups in the country that will sustainability in economic growth and generate large scale employment opportunities. The Startup India initiative will empower the Indian startups to grow through innovations and design.

Startup India Campaign was launched on 16th January 2016 by the current prime minister of India Narendra Modi and comes under Ministry of Commerce and Industry. Department of Industrial Policy and Promotions (DIPP) are responsible for organising the operations of Startup India. The launch event was attended by top 40 CEOs and startup founders from Silicon Valley. The basic idea of Start India is not to leave any talent behind.

The prime minister of India Narendra Modi addressed Indian startups on the launch of Startup India and said –

I see startups technology and innovations as exciting and effective instruments for India’s Transformation.

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What is the eligibility of a business to be recognised as a Startup by Startup India?

Startup India has been announced by Government of India for creating a conducive environment for startups in India. In this mission, various ministries proposed various activities for this purpose. To bring the uniformity, an entity shall be considered as a “Startup”. So which entity or business unit will be considered as a Startup? Followings are the key qualities; you have to review your business before applying for Startup India action plans.

So which entity or business unit will be considered as a Startup? Followings are the key qualities; you have to review your business before applying for Startup India action plans.

Followings are the key qualities that you must review your business model with before applying for Startup India action plans.

  • Up to 5 years from the date of its incorporation/registration.
  •  The turnover for any of the financial years should not exceed Rs, 25cr.
  • It is working towards innovation, development, deployment and also to commercialise new products, processes or services driven by technology or intellectual property.
  • The entity must have its identical recognition means it should not have been formed by splitting from an already running or existed business.
  • The meaning of entity here is a private limited company or registered partnership firm or a limited liability partnership.

Apart from the above criteria, if you want to obtain the tax benefits from the government, a startup so identified under above definition shall be required to obtain a certificate of an eligible business from the Inter-Ministerial Board of Certification which consists of:

  • Joint Secretary, Department of Industrial Policy and Promotions
  • Representative of Department of Science
  • Representative of Department of Biotechnology

What is the Government’s Role in Startup India Campaign?

This is very clear up to now that Government wants Indian entrepreneur to grow their business ideas in the hassle free country. But what is their key role? So, to keep the only light on the hard and tough path of entrepreneurship of Indian brains, Government has prepared an action plan. This Startup India Action Plan has a dozen of policy innovations to foster more creative startups. Like Relaxations in Tax policy and financial and labour laws.

Ministry of Human Resource Development and Department of Science and Technology together are creating startup support hubs in colleges and universities like – National Institute of Technology, Indian Institute of Technology, the Indian Institute of Science Education and Research and the National Institute of Pharmaceutical Education and Research.

The Reserve bank of India has also been involved in this campaign. They are taking steps to help improve the ease of doing business in the country and contribute to an ecosystem that is conducive for the growth of Startup Business.

Educational Alliances with Startup India

Educational Alliances is one of the important strategies of Startup India. The Government is trying to have a bond with prestigious educational institutes and establish alliances with them. Under this scheme, a bunch of startups will acknowledge a MoU with the educational institute and they will establish the startup centres inside the campus. Till now the National Institute of Silchar and Indian Institute of Madras have joined the program.  These startup centres promote the startup ideas inside the campus and provide proper guidance to the bright minds of the institutions.

According to the current news, MoU has been signed with Yi Mysuru. The chairman of Yi Mysuru, Raymya Bopanna said that –

The MoU has been signed keeping in mind that the laws are increasing both in number and complexity. It requires professionals to respond to specific queries on startup initiatives, agreement reviews or drafting, compliance requirement, tax issues, structuring of corporate deals or registering of startups.

Startup India Investors till now

So now the big question comes,

Has any big investor invested in startups through Startup India?

The answer is still vague.

But some of the famous investors have invested a bit. Like Soft Bank, headquarter in Japan has invested $2Bilion into Indian Startups. Despite it, Google declared to launch one startup based on highest votes in which top three startups will be allowed to join the next Google Launchpad week and the final winner will be ventured by Google.

With the initiation of Startup India, there is some hope that Indian Startups would get some of the support from Government to grow. Hopefully, new entrepreneurs who are completely unaware of the basics also get some idea regarding how they can proceed. But still, the path is not much clear. A lot of policies and law need to be modified.

Namita Lal
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Namita Lal

Content Writer at Business Alligators
She is a SAP Consultant by profession and Student of management and technology. A hardcore Business Enthusiasts at heart. She does analysis of startups and their new business ideas; afterwards writes their story and mantra of success. Apart from Technology and Business, Her interests in Camera make her try to see the world differently. A good book and hot cup of tea are her favorite time pass.
Namita Lal
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