START USTART UUP INDIA UP INDIA

Introduction

• Startup India is a flagship initiative of thstrong eco system for nurturing innovastrong eco-system for nurturing innovadrive sustainable economic growth aopportunities.pp

• The Government through this initiative aThe Government through this initiative ainnovation and design.

• In order to meet the objectives of the initiaAction Plan that addresses all aspects of theG h l diGovernment hopes to accelerate spreading

he Government of India, intended to build ation and Startups in the country that willtion and Startups in the country that willand generate large scale employment

aims to empower Startups to grow throughaims to empower Startups to grow through

ative, Government of India is announcing thise Startup ecosystem. With this Action Plan the

f h Sof the Startup movement:

Definition of Startup

Startup means an entity, incorporated or reg

p

p y, p gannual turnover not exceeding INR 25 crortowards innovation, development, deploymeprocesses or services driven by technology oprocesses or services driven by technology o

• Provided that such entity is not formed by salready in existence.

Pro ided also that an entit shall cease to• Provided also that an entity shall cease tofinancial years has exceeded INR 25 crore oincorporation/ registration

gistered in India not prior to five years, withg p y ,re in any preceding financial year, workingent or commercialization of new products,r intellectual propertyr intellectual property.

splitting up, or reconstruction, of a business

be a Start p if its t rno er for the pre io sbe a Startup if its turnover for the previousor it has completed 5 years from the date of

What is the eligibility for s

To be considered as eligible as startu

• A recommendation (with regard to innovativDIPP, from an Incubator established in a pos

• An incubator, which is funded (in relation to tscheme to promote innovationscheme to promote innovation

• A recommendation (with regard to innovativeDIPP, from an Incubator recognized by GoI og y

• Be funded by an Incubation Fund/ Angel FunNetwork duly registered with SEBI that endoB f d d b G I f ifi d • Be funded by GoI as part of any specified sc

• Have a patent granted by the Indian Patent anature of business being promotednature of business being promoted

startups?

p the entity, should be supported by

ve nature of business), in a format specified by st-graduate college in India.the project) from GoI as part of any specified

e nature of business), in a format specified by ornd/ Private Equity Fund/ Accelerator/Angel rses innovative nature of the business orh i i cheme to promote innovation or

and Trademark Office in areas affiliated with the

Salient features of

Simplification and HandholdingSimplification and Handholding

• Simple Compliance Regime for startuSimple Compliance Regime for startuAccordingly, the process of conducting inspsimple. Startups shall be allowed to self-cerlaws.

L h f M bil d P t l f • Launch of Mobile app and Portal for Currently, the Startup ecosystem in India alsand collaborate with other ecosystem partneand collaborate with other ecosystem partneintroduce a Mobile App to provide on-the-go

Start up Indiap

ups based on Self-certificationups based on Self certificationpections shall be made more meaningful and rtify compliance with 9 labour and environment

li d i f ti hcompliance and information exchangeso lacks formal platform(s) for Startups to connect ers Towards these efforts the Government shall ers. Towards these efforts, the Government shall o accessibility

Salient features of Start

• Startup India Hub to handhold startups dur

The “Startup India Hub” will be a key stakehoand spoke model and collaborate with Centraland spoke model and collaborate with Centralnetworks, banks, incubators, legal partners, co

• Legal support and fast-tracking patent exa

The valuation of any innovation goes up immeTo this end, the patent application of Startups so that they can realize the value of their IPRs y

up India. Contd

ing various phases of their development.

lder in this vibrant ecosystem and will work in a hub& State governments Indian and foreign VCs ange& State governments, Indian and foreign VCs, ange

onsultants, universities and R&D institutions.

mination at reduced costs.

nsely, once it gets the protective cover of a patent. shall be fast-tracked for examination and disposal, at the earliest possiblep

Salient features of Start up

Relaxed norms of public procuremen

Typically, whenever a tender is floatevery often the eligibility condition speturnover” Such a stipulation prohibitsturnover . Such a stipulation prohibitssuch tenders.

I d t t St t GIn order to promote Startups, Govemanufacturing sector) from the criteriaany relaxation in quality standards or t

Faster exit for startups

To make it easier for Startups to

India. Contd

t for startups.

d by a Government entity or by a PSU,cifies either “prior experience” or “prior

s/ impedes Startups from participating ins/ impedes Startups from participating in

t h ll t St t (i thernment shall exempt Startups (in thea of “prior experience/ turnover” withoutechnical parameters.

o wind up operations.

Funding support an

Funding support through a Fund of Fund

In order to provide funding support to Startuinitial corpus of INR 2 500 crore and a total initial corpus of INR 2,500 crore and a total years (i.e. INR 2,500 crore per year).

Credit guarantee fund for startups .

Debt funding to Startups is perceived as higDebt funding to Startups is perceived as higLenders to provide Venture Debts to StaNational Credit Guarantee Trust Companybudgetary Corpus of INR 500 crore per yea

nd Incentives

ds with a corpus of Rupees 10,000 crore.

ups, Government will set up a fund with an corpus of INR 10 000 crore over a period 4 corpus of INR 10,000 crore over a period 4

gh risk area and to encourage Banks and othergh risk area and to encourage Banks and otherartups, Credit guarantee mechanism throughy (NCGTC)/ SIDBI is being envisaged with ar for the next four years.

Industry-Academia Partnership an

• Organizing Startup Fests to showcaseplatforms.platforms.These fests would provide a platform to Stawork with a larger audience comprising of pSt tStartups.

• Launch of Atal Innovation Mission (AUtilization (SETU) Program of NITI Aayog( ) g y gThe Atal Innovation Mission (AIM) shall hav

Entrepreneurship promotion through Self-Emwherein innovators would be supported andentrepreneurs.p

Innovation promotion: to provide a platform

nd Incubation

innovations and providing collaboration

artups in India to showcase their ideas and potential investors, mentors and fellow

AIM) with Self –Employment and Talentggve two core functions:

mployment and Talent Utilization (SETU), d mentored to become successful

where innovative ideas are generated

Funding support and Inc

Tax exemption on capital gains invested in

If the money is invested in fund of funds recocapital gains tax exemptions In addition exicapital gains tax exemptions. In addition, exinewly formed MSMEs by individuals shall be e

Tax exemption to startups for 3 years

U d th S h I T ti iUnder the Scheme, Income Tax exemption iswill be eligible for tax benefits only after obsetup for this purpose.

centives. Contd.

Fund of Funds

ognised by the government, the investor can claimisting capital gain tax exemption for investment inisting capital gain tax exemption for investment in

extended to all startups.

il bl f fi t th H th t tavailable for first three years. However, the startuptaining certificate from the Inter-Ministerial Board,

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ndustry-Academia Partnership and y p

• Harnessing private sector expertise for settif f GTo ensure professional management of Governm

Government will create a policy and framework fpublic private partnership.public private partnership.

• Setting up of 7 new research parks modeled oThe Government shall set up 7 new Research Pof INR 100 crore each.

• Launching of innovation focused programs fo• In order to promote research and innovation amop

implement the certain measures namely :Innova

Incubation. Contd.

ng up incubators./ fment sponsored / funded incubators,

for setting-up of incubators across the country in

on the Research Park at IIT Madras.arks in various institutes with an initial investment

or students.ong young students, the Government shall g y g ,

ation Core,NIDHI & Uchhattar Avishkar Yojana.

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Industry-Academia Partnership and

• Annual Incubator Grand Challenge to promo

Incubators play an important role in identifyacross various phases of their lifecycle. To p yincubators in India.

Th G t i i t k fThe Government is proposing to make forwclass incubators. In its first phase, the aimthis, GoI shall identify and select 10 incubclass. These incubators would be given INmay be used for ramping up the quality of s

d incubation.Contd

ote good practices among incubators.

ying early stage Startups and supporting them support creation of successful world class pp

d l ki i t t t d b ildi ldward looking investments towards building worldm is to establish 10 such incubators. To enablebators who have the potential to become worldNR 10 crore each as financial assistance whichservice offerings.

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Credit Guarantee Fund

The initiative provides for creating a credit guaD l t B k f I di (SIDBI) ith CDevelopment Bank of India (SIDBI) with a Corpu

With this Action Plan the Government intends to With this Action Plan the Government intends to

From digital/technology sector to a wide array osocial sector, healthcare, education, etc.; and

From existing tier 1 cities to tier 2 and tier 3 citiesFrom existing tier 1 cities to tier 2 and tier 3 cities

rantee fund for startups through Small Industriesf R 500 f th t fus of Rs.500 crore per year for the next four years.

accelerate spreading of the startup movement:. accelerate spreading of the startup movement:.

of sectors including agriculture, manufacturing,

s including semi urban and rural areass including semi-urban and rural areas.

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Thank YYou

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