Nearly 58 per cent of government-recognised start-ups in THESE 5 states | Check FULL LIST

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Image source: PIXABAY.COM About 58 percent of the start-ups recognized by the government in these 5 states. View the full list.

start up indiaAbout 58 per cent of the start-ups recognized by the government are confined to only five states of the country. A total of 84,012 start-ups have been recognized by the government (as on November 30, 2022). However, the latest government data showed that nearly 60 per cent of the total government recognized start-ups are from states including Maharashtra, Karnataka, Delhi, Gujarat and Uttar Pradesh.

While Maharashtra tops the list with 15,571 government recognized start-ups, states like Karnataka, Delhi, Uttar Pradesh and Gujarat have 9,904 respectively; 9,588; 7,719, and 5,877 such institutions.

The government launched the Start-up India initiative on January 16, 2016, with the intention of creating a strong ecosystem for innovation and nurturing start-ups in the country. To meet the objectives of the initiative, the government unveiled an action plan Start-up India which laid the foundation for government support, schemes and incentives envisaged to create a vibrant start-up ecosystem in the country.

The action plan includes a number of items spanning areas such as “facilitation and handholding”, “funding support and incentives” and “industry-academia partnership and incubation”.

Under the Start-up India initiative, to provide capital at different stages of the business cycle of start-ups, the Government has implemented Fund of Funds for Start-ups (FFS) and Start-up India Seed Fund Scheme (SISFS). Have done , Both the schemes are implemented on all India basis.

The Fund of Funds for Startups scheme was approved and set up in June 2016 with a corpus of Rs 10,000 crore, to be contributed in the 14th and 15th Finance Commission cycles depending on the progress of implementation, to enable Startups Much needed boost can be given. Enables access to the Indian start-up ecosystem and domestic capital.

Under the FFS, the scheme does not invest directly in start-ups, instead it provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, that invest in growing Indian startups through equity. Invests money and equity linked instruments in start-ups.

Small Industries Development Bank of India (SIDBI) has been mandated to operate this fund through selection of suitable daughter funds and overseeing the disbursement of committed capital. AIFs supported under FFS are required to invest at least 2x the amount committed under FFS in start-ups.

According to the commerce ministry, till November 30, 2022, a commitment of Rs 7,527.95 crore has been made to AIF in the FFS of the Rs 10,000 crore fund. In addition, Start-up India Seed Fund Scheme has been approved for 4 years from 2021-22. The objective of the scheme is to provide financial support to start-ups for proof of concept, prototype development, product testing, market entry and commercialization.

By November 30, 2022, in SISFS, to the corpus of Rs. 945 crores 455.25 crore has been sanctioned to 126 incubators, of which Rs. 186.15 crore has been distributed. Under the Start-up India initiative, entities are recognized as start-ups by the Department for Promotion of Industry and Internal Trade (DPIIT).

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 Start-ups under SEBI registered Credit for Start-ups Guarantee scheme has also been established. Alternative Investment Fund.

(With IANS inputs)

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