Prime Minister Narendra Modi’s flagship scheme for Indian startups – Startup India — on Thursday crossed the 50,000-mark for the quantity of startups recognized by its implementing body Department for Promotion of Industry and Internal Trade (DPIIT). According to the information accessible by the Startup India programme, 50,018 startups had been recognized by DPIIT at the time of filing this report. The scheme launched by PM Modi on January 16, 2016, intended to give sops about registration, earnings tax exemption, a lot easier public procurement norms, rebate in patent filing, effortless winding up of business, and more. TheSpuzz Online had reported in March last year on 29,681 DPIIT recognized startups as of March 11, 2020. This had more than tripled from 8,939 startups registered till March 2018.
In terms of job creation, 5,49,842 jobs had been reported so far by 48,093 recognised startups with an typical quantity of 11 staff per startup, the Ministry of Commerce and Industry stated in a statement on Thursday. In FY21 alone, about 1.7 lakh jobs had been designed by recognized startups. Among sectors with the highest quantity of registered startups below the Startup India programme, meals processing, item development, application development, IT consulting, and company assistance services led the pack.
“The fact that so many startups have emerged is a sign that government and entrepreneurial community have realized that growth and livelihoods will come through this route. While there is a limit to setting up factories and even if we set up a factory of the size of a football field in the modern context it may at most create direct employment to 200-300 people across shifts unlike an app or a portal that may generate similar direct and multiple indirect livelihoods in few months,” Rameesh Kailasam, CEO at IndiaTech.org — business association representing India’s customer web begin-ups, unicorns and investors – told TheSpuzz Online.
Of 50,000 startups recognized by DPIIT, 19,896 had been recognized in the previous 12 months, the Ministry of Commerce and Industry stated in a statement on Thursday. The recognized startups had been based across 623 districts even though every State and union territory had at least one startup. India’s 30 states and UTs have currently announced their respective startup policies even though Maharashtra, Karnataka, Delhi, Uttar Pradesh, and Gujarat had the highest concentration of startups. The government stated that it took only 180 days to add the last 10,000 startups vis-à-vis 808 days for the very first 10,000 at the starting of the scheme. During FY17, 743 startups had been recognized which elevated to more than 16,000 startups recognized in FY21.
“India requires startups which use forward-looking technology, are innovative with ability to scale and are capable of creating wealth and livelihoods. That’s been the focus of most current successful startups and unicorns in the internet tech space. While the number of startups is a good indicator and demonstrates entrepreneurial hunger, however, the real change would come from this focus and approach,” added Kailasam.
Meanwhile, the quantity of startups funded SEBI registered option investment funds (AIF) by means of Rs 10,000 crore Fund of Funds for Startups (FFS) below Startup India had jumped from 247 as of June 24, 2019, to 320 as of February 18, 2020, as reported by TheSpuzz Online earlier. FFS launched by PM Modi in 2016 had committed Rs 3,123.20 crore to 47 AIFs till February. PM Modi had in January also announced a seed fund worth Rs 1,000 crore for startups In his address to the BIMSTEC nations at the Startup India’s international summit Prarambh, PM Modi stated that “going forward, the government will also help startups to raise debt capital by providing the guarantee.”