The year-on-year development price of the quantity of persons employed at the Department for Promotion of Industry and Internal Trade (DPIIT) recognized startups across India has contracted sharply. From 58.6 per cent rise in startup employment from CY2018 to 2019, the development price plunged to only 13.8 per cent for CY 2019-2020 period, according to the information shared by MoS Commerce and Industry Som Prakash in the Lok Sabha on Wednesday. The employment volume had jumped massively from 96,528 in 2018 to 1,53,126 in 2019 but faltered with a fairly marginal raise to 1,73,315 in 2020 amid Covid influence across sectors due to which majority enterprises like startups had either slowed down or paused hiring.
The details of employment was furnished by startups for the duration of their filing of recognition kind, Prakash stated. The major states in startup employment in 2020 have been Maharashtra, Karnataka, and Delhi with 34,008 28,840 and 19,511 persons employed respectively. In reality, the 3 startup hubs accounted for 47 per cent of India’s total startup employment. On the other hand, states with the least quantity of persons employed at startups in 2020 have been Arunanchal Pradesh with zero employment Sikkim, Meghalaya, and Mizoram with two persons employed every, Ladakh with 3 and seven persons employed in Lakshadweep.
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According to a report on the National Startup Awards 2020 by Startup India final year, 12 jobs on an typical have been made per startup. 43,149 startups have been registered with DPIIT as of February 3, 2021, according to the Startup India portal. This is up from 24,927 recognized startups as of November 17, 2019. The DPIIT recognised startups 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 rewards contain up to 80 per cent rebate in filing patents and winding up inside 90 days beneath Insolvency and Bankruptcy Code, 2016.
However, startups registered on the Startup India portal do not straight qualify for DPIIT rewards even as they can apply for distinctive acceleration, incubator programmes, and other challenges on the web-site along with accessing sources such as like finding out and improvement programmes, government schemes, state polices for startups, and more. Startups are necessary to apply separately for DPIIT recognition to avail other benefits like access to intellectual house services, relaxation in public procurement norms, uncomplicated winding of organization, access to SIDBI Fund of Funds.