Startup India Scheme: Launch Date, Benefits, Atal Innovation Mission | Startup India UPSC

Startup India Scheme

Startup India Scheme is an incubator, accelerator, and leadership springboard for social entrepreneurs. Through the scheme, the government works with early-stage social entrepreneurs to launch ventures that create deep impact, facilitate growth-stage social entrepreneurs to scale their models and drive large-scale systemic change, and rain and coach leaders for the sector, who are as yet unrecognized and untapped.

The Government of India’s flagship program, Startup India, aims to create a robust ecosystem for fostering startups and innovation in the nation, fostering long-term economic growth and creating significant employment possibilities. The government hopes that this effort will enable startups to develop via creativity and innovation.

The I-MADE program, which aims to assist Indian entrepreneurs in creating 10 lakh (1 million) mobile app start-ups, and the MUDRA Bank’s scheme (Pradhan Mantri Mudra Yojana), which aims to provide microloans with low-interest rates to business owners from low socioeconomic backgrounds, have already been introduced by the government under the Startup India Scheme.

What are Startups?

A startup refers to a business that is just getting started. Startups are created by one or more business owners who desire to provide a good or service for which they feel there is a market. These businesses typically have large startup expenses and little income, so they seek funding from several sources, including venture capitalists.

Across 56 diverse sectors, the Department for Promotion of Industry and Internal Trade (DPIIT) has acknowledged startups. It is interesting to note that under the Startup India Scheme, the number of startups increased from 471 in 2016 to 72,993 in 2022.

Highlights of the Startup India Scheme

The major highlights of Startup India Scheme are:

Points	Description
Start Up India Scheme Launch Date	16th January 2016
Concerned Ministry	Ministry of Commerce and Industry
Start Up India Scheme Department	Department for Promotion of Industry and Internal Trade

Benefits of Start Up India Scheme

The benefits under the Startup India Scheme are:

• Investment pool for startups of 10,000 crores.
• Reduction in the cost of registering a patent.
• Enhanced Bankruptcy Code to guarantee a 90-day timeframe for filing.
• For the first three years of operation, there will be no inspections. For the first three years of business, there is no tax.
• There will be tax-exempt capital gains during the first three years of operation.
• Conformity with self-certification.
• A hub for innovation was established as part of the Atal Innovation Mission.
• To focus on 5 lakh schools and engage 10 lakh kids in programs connected to innovation.
• New programs to protect startup companies’ intellectual property.

Eligibility for Startup India Scheme

An entity can apply for Startup India Scheme when:

• It is incorporated in India as a limited liability partnership, a partnership firm, or a private limited company.
• It has a history of fewer than ten years, meaning it was incorporated or registered less than ten years ago.
• Since incorporation/registration, the company’s annual revenue has never exceeded INR 100 crores.

An organisation created through the division or reconstruction of an already-existing corporation is not regarded as a “Startup.”

How the Startup India Scheme Facilitated Growth of Start Up in India?

The Government of India, under various programs, undertook the below-mentioned initiatives to promote the Startup India Scheme in all parts of the country.

Startup India Action Plan

• The Action Plan established the framework for government assistance, programmes, and incentives intended to develop a thriving startup ecosystem in the nation.
• There are 19 actions included in it, covering topics like simplification and support, funding assistance and incentives, and industry-academia collaboration and incubation.
• The Startup India Action Plan established the framework for government assistance, programmes, and incentives intended to develop a thriving startup ecosystem in the nation.

Startup India Hub

• It is a first-of-its-kind online platform that enables interaction and discovery between all participants in India’s entrepreneurial ecosystem.
• Startups, investors, funds, mentors, academic institutions, incubators, accelerators, corporations, governmental bodies, and more are all hosted by the online hub.

Startup India Seed Fund Scheme (SISFS)

It seeks to offer funding help to entrepreneurs for market entry, product testing, prototype creation, proof of concept, and commercialization.

Government Schemes

• The National Initiative for Developing and Harnessing Discoveries (NIDHI), an umbrella programme started by the Department of Science and Technology (DST), aims to foster knowledge-based and technology-driven innovations into profitable enterprises.
• The PRAYAS initiative, created to support entrepreneurs financially, stands for Promoting and Accelerating Young and Aspiring Innovators and Startups.

☛ Government Schemes for UPSC

Defense Sector and Biotechnology

• The Innovations for Defence Excellence (iDEX) program was established by the Department of Defense Production with the goal of encouraging innovation and technological advancement in the defence and aerospace sectors by involving businesses, R&D organisations, and academic institutions and giving them funding to conduct research.
• Through the Biotechnology Industry Research Assistance Council (BIRAC), the Department of Biotechnology supports and fosters biotechnology businesses to promote biotechnology innovation.

Atal Innovation Mission

• The government has established Atal Incubation Centers (AIC) as part of the Atal Innovation Mission to foster businesses in various industries.
• Additionally, it has introduced the Atal New India Challenge (ANIC) program to help entrepreneurs with technological ideas that address pressing societal and national problems.

Start Up India Initiative: Process of Registration

The following are the prerequisites for the successful registration of businesses under the Startup India scheme:

• Before starting a business, a person should incorporate it as a Private Limited Company, a Limited Liability Partnership, or a Partnership Firm and get the PAN, certificate of incorporation, and other necessary compliances.
• To register a business, a person must first connect to the Startup India official website, complete the registration form, and upload all necessary paperwork.
• Some crucial documents needed for registration are a letter of recommendation, an incorporation/registration certificate, and a brief business description.
• Since start-ups are not eligible for income tax benefits, businesses must first be approved by the Department of Industrial Policy and Promotion (DIPP) to take advantage of these advantages. To be qualified for IPR-related benefits, they must also hold an Inter-Ministerial Board (IMB) certification.
• You will receive a recognition number for your startup and a certificate of recognition immediately following successful registration and document verification.

Startup India UPSC

The Startup India Scheme is one of the most aspirational schemes launched by the Prime Minister of India to boost the start-up culture in India. It is important for an aspirant to cover this topic in detail for the upcoming UPSC Exam. One should keep referring to the Current Affairs from time to time to be updated with all the recent happenings.

Startup India Scheme UPSC Questions

Question: What is the amount the government has set aside as a corpus fund managed by equity funding support for the development and growth of innovation-driven Startups?

1. 10,000 crores
2. 20,000 crores
3. 30,000 crores
4. 40,000 crores

Answer: Option A

Question: To fulfil the Government of India’s mission & to promote entrepreneurship in the country, Academia Alliance Program has been formed. With whose initiative Academia Alliance Program has been formed?

1. Niti Ayog
2. Confederation of Indian Industries
3. Startup India
4. Ministry of New & Renewable Energy

Answer: Option C