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Source: The post is based on the article “Under the Startup India initiative, ‘Action Plan’ for Startups unveiled to create a vibrant startup ecosystem in the country” published in PIB on 2nd August 2023.
What is the News?
The Union Minister of State for Commerce and Industry has informed Lok Sabha about the various programs undertaken by the Government to promote startups across the country.
What are the programs launched by the Government to promote startups across the country?
Startup India Action Plan: It was unveiled in 2016.The Action Plan comprises 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”.
Fund of Funds for Startups (FFS) Scheme: It was established with a corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS.
Credit Guarantee Scheme for Startups (CGSS): It is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance DPIIT recognised startups.
Support for Intellectual Property Protection: It facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filing of trademark vis-a-vis other companies.
International Market Access to Indian Startups: It aims to help connect Indian startup ecosystems to global startup ecosystems through various engagement models.
Start-ups Intellectual Property Protection(SIPP) Scheme: It facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees.
– The Government bears the entire fees of the facilitators for any number of patents, trademarks or designs, and startups only bear the cost of the statutory fees payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filing of trademark vis-a-vis other companies.
Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
Faster Exit for Startups: The Government has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
Startup India Hub: The Government launched a Startup India Online Hub in 2017 which is one of its kind online platforms for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other.
National Startup Advisory Council
Startup India Seed Fund Scheme (SISFS): The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.
National Mentorship Portal(MAARG)
Startup20 Engagement Group: It is a new engagement group initiated under India’s G20 presidency. It aims to create a global narrative for supporting startups and enabling synergies between startups, corporates, investors, innovation agencies and other key ecosystem stakeholders.
