Context: 

India celebrates the ninth anniversary of the Startup India initiative as a National Startup Day on January 16.

About Startup India

• Startup India is a flagship initiative launched by the Government of India on 16th January 2016 to build a strong eco-system for nurturing innovation and startups in the country which will drive economic growth and generate large-scale employment opportunities.  
• This initiative is managed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce & Industry.

Core Features of Startup India

• Ease of Doing Business: Startups can operate with more simplified processes such as self-certification and single window clearances.
• Tax Benefits: The startups that are eligible enjoy tax exemptions over the first three financial years as they are established, and this helps them get to their initial growth phase.
• Funding Support: The Fund of Funds (FFS) for Startups worth ₹10,000 crores is an important source of early-stage funding for the growth of a startup.
• Sector-Specific Policies: The government has undertaken specific industry policies targeted at industries like biotechnology, agriculture and renewable energy for promotion.

Key Achievements of Startup India

• Growth of Startups: In 2016, there were around 500 DPIIT-recognized startups, whereas in January 2025 this number stood at 1,59,157.
• Women Entrepreneurs: On October 31, 2024, 73,151 recognized startups had at least one woman director and the number of women entrepreneurs was growing.
• Job Creation: From 2016 to October 31, 2024, Startup India has generated over 16.6 lakh direct jobs, which is a lot of employment.
• Sectoral Growth: Startups in fintech, edtech, health-tech, and e-commerce have addressed local challenges and gained global recognition, with companies like Zomato, Nykaa, and Ola.
• India has firmly established itself as the third-largest startup ecosystem in the world.  
• The creation of more than 100 unicorns. A Unicorn is a private startup company that is valued at over $1 billion

Flagship Schemes Implemented Under Startup India

• Startup India Seed Fund Scheme (SISFS): Launched by DPIIT for four years in 2021, the scheme has a corpus of INR 945 crore and aims to support around 3,600 startups through 300 incubators.
• Credit Guarantee Scheme for Startups (CGSS): Implemented by National Credit Guarantee Trustee Company Limited (NCGTC), it aims at providing credit guarantees to DPIIT-recognised startups for loans.

• Fund of Funds for Startups (FFS) Scheme: It is a flagship initiative under the Startup India Action Plan, launched in 2016. 

• The Small Industries Development Bank of India (SIDBI) manages the FFS. 
• The FFS provides capital to SEBI-registered Alternative Investment Funds (AIFs).

Other Initiatives to Support Startups

• BHASKAR: The Department for Promotion of Industry and Internal Trade (DPIIT) launched the Bharat Startup Knowledge Access Registry (BHASKAR) platform as part of the Startup India program in September 2024.  

• It aims to centralize and streamline interactions within India’s entrepreneurial ecosystem by connecting startups, investors, mentors, service providers, and government bodies.

• Startup Mahakumbh: It is a flagship event that brings together startups, unicorns, soonicorns, investors, industry leaders, and ecosystem stakeholders under one roof. (Soonicorns are startups with the potential to become unicorns by achieving the $1 billion valuation mark) 

• The First Edition was held in 2024 at Bharat Mandapam, New Delhi under the theme ‘Bharat Innovates’ 
• The Second Edition will be held on 3–5 April 2025 at Bharat Mandapam, New Delhi under the theme, “Startup India @ 2047 – Unfolding the Bharat Story”.