The variety of government-recognized startups, beneath the Startup India initiative launched by Prime Minister Narendra Modi in January 2016, has grown practically 85X. Registered with the Department for Promotion of Industry and Internal Trade (DPIIT), the variety of startups has elevated from 504 in 2016 to general 42,733 startups in 2020, in response to the Commerce Ministry’s information. The annual variety of recognised startups scaled to five,420 in 2017 adopted by 8,946 startups in 2018, 11,683 startups in 2019, and 14,778 startups in 2020. However, the year-on-year growth fee has contracted sharply from 975 per cent in 2016-17 to 65 per cent in 2017-18, 30.5 per cent in 2018-19, and 26.5 per cent in 2019-20.
According to the information shared by the Ministry of Commerce with Financial Express Online earlier, 8,939 startups had been acknowledged until March 2018. As of January 27, 2021, the variety of recognised startups in the brand new yr stood at 1,402, MoS Commerce and Industry Som Parkash mentioned sharing information on the annual variety of recognised startups in a written reply to a query in the Lok Sabha just lately. Nonetheless, the most recent tally of recognised startups as of February 17, 2021, has crossed the 44,000-mark, in response to the information from the Startup India platform.
The authorities additionally allows funding in recognised startups by way of SIDBI’s Rs 10,000 crore Fund of Funds for Startups (FFS). Financial Express Online had reported last week that FFS has enabled Rs 5,089.55 crore funding into 391 government-recognised startups as of January 31, 2021. However, the jump in the variety of funded startups was solely 22 per cent from 320 startups backed beneath the programme as of February 18, 2020. Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vedantu, Vogo, Zostel, and so forth., had been among the notable startups funded via FFS.
Importantly, registration with the Startup India portal is completely different from registration for DPIIT recognition. Startup India portal-registered startups don’t qualify for DPIIT advantages even as they’ll apply for varied acceleration, incubator programmes, and different challenges on the web site together with accessing sources such as like studying and growth programmes, authorities schemes, state insurance policies for startups, and extra. Startups are required to use individually to avail different beneﬁts such as entry to mental property companies, rest in public procurement norms, simple winding of firm, entry to SIDBI Fund of Funds.
Eligible startups ought to be integrated as a personal restricted firm or registered as a partnership agency or a restricted legal responsibility partnership with a turnover of lower than Rs 100 crores in any of the earlier monetary years. The authorities presently considers an entity a startup solely as much as 10 years from the date of its incorporation and that it ought to be working in direction of innovation or enchancment of present merchandise, companies, and processes, and will have the potential to generate employment and create wealth.