Prime Minister Narendra Modi’s pet scheme to make India a startup hub – Startup India has crossed the 40,000-mark for startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). The quantity of recognized startups so far – 40,729, as per the government information, has elevated 63.4 per cent more than the previous 12 months from 24,927 startups recognized by DPIIT as of November 17, 2019. In reality, the government investment promotion agency Invest India had tweeted the similar day that 26 startups are getting recognized by DPIIT every single day. Moreover, the government’s citizen engagement platform MyGovIndia had tweeted that every single recognized startup employs an typical of 12 people today. Launched in January 2016 by PM Modi, DPIIT startups beneath the Startup India programme had developed 1,54,558 jobs in 2019 up from 95,338 jobs in 2018 and 49,648 in 2017.
According to the information shared by the Ministry of Commerce with TheSpuzz Online earlier, 8,939 startups have been recognized till March 2018. The recognised startups beneath DPIIT are entitled to self-compliance beneath 3 environmental and six labour laws, exemption from paying earnings tax for 3 consecutive years along with exemption on capital gains and investments above fair marketplace worth. The positive aspects incorporate up to 80 per cent rebate in filing patents and winding up inside 90 days beneath Insolvency and Bankruptcy Code, 2016.
Also study: Breaking down Reliance vs Amazon: The epic battle for Indian e-commerce bragging rights
Importantly, startups registered on the Startup India portal do not qualify for DPIIT positive aspects although they can apply for many acceleration, incubator programmes, and other challenges on the web-site along with accessing sources such as like understanding and improvement programmes, government schemes, state polices for startups, and more. For DPIIT recognition, startups are expected to apply separately to avail other benefits such as access to intellectual house services, relaxation in public procurement norms, quick winding of organization, access to SIDBI Fund of Funds.
According to the government information, SIDBI had committed Rs 3123.20 crore to 47 SEBI registered Alternative Investment Funds (AIFs) as of February 18, 2020. These funds have raised Rs 25,728 crore corpus and have invested Rs 3,378.47 crore into 320 startups out of which Rs 912.91 crore have been drawn from Fund of Funds for Startups. Instead of investing straight invest in startups, Fund of Funds delivers capital to AIFs, identified as daughter funds, that additional invest in startups via equity and equity-linked instruments.