“Never dream of becoming something if you dream, dream of doing something”
Shri Narendra Modi
Hon’ble Prime Minister of India
Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities.
The Government, through this initiative taken on 16th of January, 2016 by Hon’ble Prime Minister aims to empower startups to grow through innovation and design. Several programs have been undertaken since the launch of the initiative. His vision of transforming India into a country of job creators instead of job seekers. These programs have catalyzed the startup culture, with startups getting recognized through the Startup India initiative and many entrepreneurs availing the benefits of starting their own business in India. India has managed to retain its position as the 3rd largest start-up ecosystem in the world with more experienced professionals taking entrepreneurial route. It has also scrolled up three places in 2018 to position itself in the 57th rank in the Global Innovation Index from 60th position in the previous year. Besides this, India also holds the title for the highest Unicorn holder of 8 ventures right after the US and China. The Indian unicorn list is expected to add 10 more businesses by the end of 2020.
SCHEMES LAUNCHED BY THE GOVERNMENT OF INDIA
|1.||The Venture Capital Assistance Scheme||Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
This scheme :-
√ Help in assisting agripreneurs to make investments in setting up agribusiness projects through financial participation.
√ Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).
|2.||Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)||SIP-EIT is a scheme to provide financial support to MSMEs and Technology Startup units for international patent filing to encourage innovation and recognize the value and capabilities of global IP along with capturing growth opportunities in ICTE sector.|
|3.||Stand-Up India for Financing SC/ST and/or Women Entrepreneurs||Stand Up India Scheme facilitate bank loans between 10 lakh and 1 crore to atleast one scheduled caste (SC) or Scehduled Tribe, borrower and atleast one women per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.|
|4.||Single Point Registration Scheme||The Government is the single largest buyer of a variety of goods. With a view to increase the share of purchases from the small-scale sector, the Government Stores Purchase Programme was launched in 1955-56. NSIC registers Micro & small Enterprises (MSEs) under Single Point Registration scheme (SPRS) for participation in Government Purchases.
Benefits of Single Point Registration Scheme
√ Free of cost tender info
√ Exemption from emd (earnest money deposit)
√ Advantage in tender participation
√ Procurement from mses
|5.||ExtraMural Research or Core Research Grant||Science and Engineering Research Board (SERB) under Ministry of Science & Technology
Extramural Research (EMR) funding scheme of SERB to academic institution, research laboratories and other R&D organizations to carry out basic research in all frontier areas of Science and Engineering is in limelight for more than four decades since from the inception of SERC.
√ This scheme encourages emerging and eminent scientist in field of science and engineering for individual centric competitive mode of research funding.
√ Since the scheme provides core research support to the active researchers, the existing name Extramural Research (EMR) has been renamed as Core Research Grant (CRG)
√ The scheme provides core research support to active researchers to undertake research and development in frontier areas of Science and Engineering
|6.||High Risk -High Reward Research Science and Engineering Research Board (SERB)||High Risk and High Reward Research is a scheme supporting and inviting new proposals and ideas expected to have a paradigm shifting influence on the Science and Technology
√ The Scheme for funding High Risk – High Reward Research aims at supporting proposals that are conceptually new and risky, and if successful, expected to have a paradigm shifting influence on the S&T.
√ This may be in terms of formulating new hypothesis, or scientific breakthroughs which aid in emergence of new technologies.
|7.||IREDA NCEF Refinance Scheme||Indian Renewable Energy Development Agency Ltd. (IREDA) has published a revised refinance scheme under the support by The National Clean Energy Fund (NCEF) elaborating about the revival of the operations of existing biomass power & small hydro power projects affected due to unforeseen circumstances.
√ The scheme aims to revive the operations of the existing biomass power &small hydro power projects by bringing down the cost of funds for these projects by providing refinance at concessional rates of interest, with funds sourced from the National Clean Energy Fund (NCEF).
|8.||Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)||SFURTI is a Scheme of Fund for Regeneration of Traditional Industries. Ministry of MSME has launched this scheme in the year 2005 with the view to promote Cluster development. KVIC is the nodal Agency for promotion of Cluster development for Khadi as well as for V.I. products. As on date, a no. of 76 Clusters have come up as per the scheme and many of these clusters have been completed.
√ The Revamped SFURTI Cluster will intensify the sustainability of the programme beyond the project period through creation of Special Purpose Vehicle (SPV) or deemed SPV.
√ Further, the revamped guideline has added many new features for all round development of SFURTI clusters
|10.||Assistance to Professional Bodies & Seminars/Symposia Department Of Science & Technology||The Programme extends partial support on a selective basis, for organizing seminar / symposia/ training programmes / workshops / conferences at national as well as international level. The support is provided to Research Institutes/ Universities/Medical and Engineering Colleges and other Academic Institutes/ Professional Bodies who organize such events for the scientific community to keep them abreast of the latest developments in their specific areas.
√ The support is generally given for encouraging participation of young scientists and research workers in such events and publication of proceedings / abstracts for wider dissemination.
√ The Programme also supports S&T Professional bodies.
|11.||Multiplier Grants Scheme||Department of Electronics and Information Technology (DeitY) is implementing Multiplier Grants Scheme (MGS). MGS aims to encourage collaborative R&D between industry and academics/ R&D institutions for development of products and packages. Under the scheme, if industry supports R&D for development of products that can be commercialized at institution level, then government will also provide financial support that is up to twice the amount provided by industry. The proposals for getting financial support under the scheme are to be submitted jointly by the industry and institutions.
The Scheme is extended upto 31st March 2020 with a total outlay of Rs. 36 Crores and DeitY contribution of Rs. 24 Crore. The Technology Development Council (TDC) budget head will be used for implementation of this scheme. Based on this pilot implementation and feedback, the scheme would be reviewed by Working Group.
|12.||Loan For Rooftop Solar Pv Power Projects||Headed by the Indian Renewable Energy Development Agency (IREDA), this scheme promotes renewable energy development by providing support for solar PV projects on rooftops. The IREDA will provide 70% of the project cost, while the entrepreneur will contribute the remaining 30% of the amount. In some projects, where the unit has great track record, higher benefits, and more productivity, the IREDA may extend the loan amount to 75% of the project cost. The loan has to be repaid in a maximum of 9 years.|
|13.||Sustainable Finance Scheme||SIDBI has introduced a new scheme called the Sustainable Finance Scheme for funding sustainable development projects that contribute energy efficiency and cleaner production but not covered under the international or bilateral lines of credit.
ü All sustainable development projects such as renewable energy projects, Bureau of Energy Efficiency (BEE) star rating, green microfinance, green buildings and eco-friendly labelling, etc. are applicable for the scope of this scheme.
|15.||Sidbi Make In India Soft Loan Fund For Micro Small And Medium Enterprises (Smile)||SIDBI Make in India Loan for Enterprises (SMILE) was also launched by Jaitley. The Scheme is intended to take forward Government of India’s ‘Make in India’ campaign and help MSMEs take part in the campaign.
√ The focus will be on identified 25 sectors under ‘Make in India’ programme’ with emphasis on financing smaller enterprises within the MSME sector.
√ The scheme is expected to benefit approximately 13,000 enterprises, with employment for nearly 2 lakh persons.
√ The objective of the Scheme is to provide soft loan, in the nature of quasi-equity and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME as also for pursuing opportunities for growth for existing
|16.||NewGen Innovation and Entrepreneurship Development Centre||The NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC) is being promoted in educational institutions
√ to develop institutional mechanism
√ to create entrepreneurial culture in S&T academic institutions and to foster techno-entrepreneurship for generation of wealth and employment by S&T persons.
√ The NewGen IEDCs are established in academic institutions (science colleges, engineering colleges, universities, management institutes) having requisite expertise and infrastructure
OUTCOMES OF THE STARTUPS SCEHEME LAUNCHED BY THE GOVERNMENT OF INDIA
|> The overall startup base in the country is estimated to exceed 7500, a growth of 12-15% from last year.|
|> The number of women founders has multiplied to 14% in 2018 from 11% last year as well as more Tier 2/Tier 3 cities are emerging as startup accommodators. A whopping figure of 7200-7700 Start-ups incepted during 2013-18, with overall base proliferating at a rate of 12-15%.|
|> Enterprise Software witnessed a growth of 16% with over 1100 ventures cropping up in 2018, so did the FinTech segment with a rate of 14% and more than 900 startups due to the onset of innovative technology leading to the efficiency in payment, lending and banking.|
|> The seamless digital transaction process for consumers has brought about 500 million new users thus increasing internet penetration leading the way for the growth in Marketplace at a pace of 12%.|
|>Integrating a tech platform by seamlessly connecting doctors and patients has led to a significant rise of 8% in HealthTech space.|
|> Over 500 startups in this domain have come up comprising of online pharmacies, wearable solutions for fitness tracking and coaching, health monitoring devices, consultation platforms, etc.|
|> The technology-induced educational solutions for the new generation of learners and the wide level of acceptance in the ecosystem has resulted in the creation of over 400 startups implying a growth of the EdTech segment by 6% in the last five years.|
|> Industry verticals like logistics and transport witnessed a growth rate of 5%, Industrial & Manufacturing – 4%, Consumer Software – 4%, FoodTech – 3%, HRTech – 2%, RetailTech – 2% while others including Automotive, Travel, Media & Entertainment, AdTech, Real Estate, Gaming, Security, etc. has a collective growth rate of 24%.|
|> AgriTech sector has augmented at a rate of 12% while the CleanTech sector witnessed a growth of 9%. 1200+ Number of Start-ups added in 2018; steady and sustained growth in new Start-ups.|
|> Number of startups to incorporating Advance tech in their business has soared and is constantly expanding at 40% CAGR.|
|> Data Analytics stands tall in its adoption across various industry verticals and took away the massive chunk of the pie of 27% out of the 1200+ startups added this year. Not far behind is IoT at 26% and Artificial Intelligence (AI) at 24%, followed by AR/VR at 6% and Blockchain at 5%. 3D Printing, drones, automation vehicles, RPA collectively constituted of 12%.|
|> Between 2016-2019, 15,113 startups were recognised under the Startup India programme across 492 districts in 29 states and six Union territories 55% of the recognised startups are from Tier 1 cities, 27% from Tier 2 cities, and 18% are from Tier 3 cities|
|> 13,176 recognised startups have reportedly created 1,48,897 jobs with an average of 11 employees per startup|
|> 45% recognised startups have at least one or more women directors|
|> 24 Indian states have introduced a startup policy|
|> The government made 22 regulatory amendments and approved 1,275 patent rebates in the last three years|
|> More than 288.16K registered users are there on the Startup India hub|
|> Startup India Hub has addressed 121.83K queries and facilitated 673 startups|
LONG WAY TO GO!
No doubt all the initiative taken by the government of India will boast economic growth of the country and it is proved in past years . More than 233.27K have registered under the Startup India learning programme. At the same time, government think tank NITI Aayog launched the Atal Innovation Mission to foster innovation among budding entrepreneurs at the grassroots level. As part of this, 5,441 Atal Tinkering Labs have been set up across the country. In the Union Budget for 2018, the government also allocated $480 Mn (INR 3414.19 Cr) for new-age technologies to further support innovation in the Indian startup ecosystem.Under the Startup India programmed, startups were defined and redefined. For instance, the startups’ age was also increased from 5 to 7 years (10 in the case of biotech). The government has taken various initiatives to boost the growing startup culture in the country such as fast-tracking of startup patent applications, income tax exemption, and self-certification. It also launched the Startup India Hub to bridge the gap between various stakeholders of the startup ecosystem. Government of India has launched a mobile app and a website for easy registration for startups. Anyone interested in setting up a startup can fill up a simple form on the website and upload certain documents. The entire process is completely online.
India is at crossroads where it now has to cater to the aspirations of a billion people. Existing frameworks can prove to be inadequate and there is a great need to leverage a billion minds and become a global power. Startups and entrepreneurship is the best way forward in becoming a knowledge superpower.