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Contents
Source: The post is based on an article “70,000 Startups & The Helping Hand of Sarkar” published in the Times of India on 12th July 2022.
Syllabus: GS3 – Achievements of Indians in Science & Technology; Indigenization of Technology and Developing New Technology.
Relevance: Start-ups Ecosystem in India
News: In recent periods, the government has released a detailed ‘Start-up India Action Plan’, to support and empower start-ups in the country.
About the Start-up India action plan
It includes 19 action points focussing on three different categories as given below
(a) handholding support to entrepreneurs/start-ups;
(b) creating funding support and incentivisation mechanisms for start-ups; and
(c) supporting industry academia partnerships and providing necessary incubation support for start-ups.
Status of Start-ups ecosystem in India
Today, India ranks at the third place in the global start-up ecosystem
The sector is also growing at an annual rate of 12-15%. In 2014, the number of start-ups were not more than 400. However, the number of start-ups has jumped to a whopping number of 70,000 in 2022.
Around 102 start-ups have risen into the $1 billion-plus valuation club.
Why start-ups are significant?
They contribute to generating wealth and employment in the country.
They propel innovation and technological development across key development sectors.
What were the factors that have led to high growth in the start-ups sector in India?
There has been an enabling environment that has led to a vibrant startup movement across the country.
The Union government launched ‘Start-up India Stand-up India’ in 2015.
The government unlocked the space sector and opened it up to private players.
The start-ups have been receiving funding without any interruptions. For example, even the Covid pandemic, could not impact funding
The Department of science and technology (DST) reshaped the start-up culture in the country. It launched the Technology Business Incubator (TBI) having a network of more than 160 incubators.
The DST also set up the Seed Support System in the TBIs for providing much needed early-stage funding to start-ups.
Under the National Initiative for Developing and Harnessing Innovations (NIDHI) TBI programme, 105 incubators have been set up across the country, over the last five years.
What are the noteworthy contributions of DST’s programme on innovation and entrepreneurship?
The TBI network identified and supported start-ups during the pandemic period.
The network of incubators has supported more than 12,000 start-ups which include 1,500-plus women-led start-ups. These start-ups have filed more than 900 patents and produced more than 1,15,000 new jobs.
Service Tax exemption to both incubators and incubatee.
Permission to hold equity by DST-supported incubators (not for profit legal entities) i.e., converting government grants to equity subscription.
CSR funding for incubators.
First government agency to
– offer programmes in PPP mode for scouting and supporting innovation and start-ups:
– partner and create Sebi-registered PPP innovation fund.
– bilaterally and multilaterally partner with international government and multilateral agencies respectively, for innovation and entrepreneurship development.
It has pioneered in training and capacity building of incubation managers with exposure to global best practices.
The TBIs were first to get support from multilateral international developmental agencies like UNDP, infoDev etc.
Way Forward
India’s vibrant and mutually supplementing start-ups ecosystem should be seen as a role model for the rest of the world.
