The government has set up FFS to meet the funding needs of startups. (Representational image)
The Startup India program has been primarily established to provide an enabling environment for Startups.
India’s startup space has seen rapid growth in terms of numbers and impact. The number of startups recognized by the government has increased from 452 in 2016 to 84,012 in 2022 (as on 30 November 2022).
49% startups are from Tier II and Tier III. An enabling environment for the startup community has been facilitated by several government initiatives from time to time.
Among other major operations, Startup India The program is primarily set up to provide an enabling environment for startups.
From providing funding to tax incentives, from supporting intellectual property rights to easier public procurement, from enabling regulatory reforms to providing access to international festivals and events, the Startup India program has been a major policy initiative of the government.
Under the Startup India initiative, the Government has implemented the Fund of Funds for Startups (FFS) and the Startup India Seed Fund Scheme (SISFS) to provide capital to startups at different stages of their business cycle.
Both the schemes have been implemented on a pan-India basis.
Fund of Funds for Startups (FFS) Scheme: The government has set up FFS 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.
Startup India Seed Fund Scheme (SISFS): The objective of the scheme is to provide financial support to startups for proof of concept, prototype development, product testing, market entry and commercialization.
other programs
Credit Guarantee Scheme for Startups (CGSS): Government to provide credit guarantee for loans extended by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) to DPIIT recognized Startups under SEBI registered Alternative Investment Fund Credit Guarantee for Startups The plan has been established.
The objective of CGSS is to provide credit guarantee up to a specified limit for loans extended by Member Institutions (MIs) to finance eligible borrowers. DPIIT recognized startups.
Atal Innovation Mission (AIM): With an aim to serve as a platform to promote innovation hubs, grand challenges, startup businesses and other self-employment activities especially in technology driven sectors.
Fast Exit for Startups: The objective is to make it easier for startups to shut down operations.
Startup India Hub: With an aim to create a single point of contact for the entire startup ecosystem and enable exchange of knowledge and access to funds.
Tax exemption to startups for 3 years: With an objective to promote the growth of startups and meet the working capital requirements.
other plans;
- Stand-up India: For funding SC/ST and/or women entrepreneurs
- Pradhan Mantri Mudra Yojana
- Self Employment Loan Schemes – Credit Line – 1 – Micro Finance Scheme
- Support for International Patent Protection in Electronics and Information technology (SIP EIT)
- Aspire – a scheme to promote innovation, rural industry and entrepreneurship
Apart from the above mentioned initiatives, there are several schemes, which are specific to different sectors and needs of entrepreneurs.
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