The Startup India scheme was launched under Modi’s government in Jan 2016 to promote Indian startups ecosystem. According to the Commerce Ministry’s recent reports and statistics, there is a 57% surge in the number of government-recognized startups over last year. As per the reports, there were 24,927 government-recognized startups in 2019, whereas it has jumped to 39,114 in 2020 (numbers as of November 3, 2020). These startups are identified by the Department of Industry and Internal Trade (DPIIT).
DPIIT had aimed to bring in 50,000+ startups, 20 lakh jobs (including direct and indirect), and 500 new accelerators and incubators. They also considered a proposal of spending close to 10,000 crore funds to increase the number of incubators and their functionality. Along with these, DPIIT had an idea of developing 100+ innovation zones in urban local bodies and seven research parks to improve the workability of startups.
Small Industries Development Bank of India (SIDBI) had committed an amount close to 3200 crore rupees to 47 SEBI registered Alternative Investment Funds (AIF) that have invested in 320 startups. These funds do not invest directly in the new companies but provide capital to AIF through equity and equity-linked instruments.
These numbers are positive indicators of startups growth in India. Startup India scheme has also provided an opportunity for the startups to manage during the covid-19 crisis.
Startups have played a huge role in bringing the country’s talent out in the best possible way. Few startups have performed well in the past and have been acquired by the top MNCs like Google and Facebook. Though the current government supports the startups thick and thin under the Startup India scheme, more incentives and additional funding can increase the success of the startups in the near future.