STARTUP ECOSYSTEM IN INDIA
1SCENARIO IN INDIA
  1. Government of India launched Startup India flagship initiative in 2016.1
  2. India is the 2nd largest start-up hub in the world.2
  3. Around 26 start-ups are being recognised by DPIIT everyday.3
  4. 18,000+4 start-ups were recognized by DPIIT (up till May 2019), which includes 8,993 start-ups recognised in 2018 alone.5

Sources: 1, 2, 3, 4, 5

2GOVERNMENT GRANTS TO DEVELOP STARTUP CULTURE
  • SIDBI (Small Industries Development Bank of India)- Major funds managed by SIDBI:
    • Fund of Funds for Startups: $1.43 Bn available for contribution to various Alternative Investment Funds (AIFs)6
    • India Aspiration Fund: $286 Mn sector agnostic fund for startups7
    • ASPIRE Fund: $44.34 Mn available for funding agro-based start-ups8
  • Venture Capital Scheme - Small Farmers’ Agri-Business Consortium (SFAC) has sanctioned venture capital assistance to 484 Projects amounting to $20.13 Mn having project cost of $233.30 Mn during January to December 2018.9
  • Multiplier Grants Scheme - $5.15 Mn support funds to reform R&D of start-ups through industrial linkages.10
  • New Generation Innovation and Entrepreneurship Development Centre (IEDC) - Provides one-time, non-recurring financial assistance up to a maximum of $35,755 for knowledge-based and technology-driven start-ups.11
  • Aspire - A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship – was launched by Ministry of Micro, Small and Medium Enterprises. It aims to set up a network of technology centres and to set up incubation centres to accelerate entrepreneurship and to promote start-ups for innovation in agro-based industries.12

Sources: 7, 8, 9, 10, 11, 12

3ATAL INCUBATION CENTER
  • 100+13 Atal Incubation Centers (AICs) are to be established by the NITI Aayog, that will foster 5,000-6,000 innovative Startups 1 500+ start-ups incubated at 19 AICs in the first phase and close to 10% focus on women empowerment.14
  • 5,441115 schools were selected till March 2019 and a target of 10,000 schools has been set for establishing Atal Tinkering Labs by 2020. Each selected school receives a grant of $28,60416 each.
  • 13 Startup Centres, 16 Technology Business Incubators (TBIs) and 6 Research Parks have been approved by National Expert Advisory Committee (NEAC). This is a joint initiative by the Department of Science and Technology and the Ministry of Human Resource Development under the Startup India scheme.17

Sources: 13, 14, 15, 16, 17

4INTELLECTUAL PROPERTY RIGHTS
  • Patent Rules, 2003 and Trade Mark Rules, 2017 have been amended to streamline processes, to make them more user-friendly.18
  • Start-ups Intellectual Property Protection (SIPP) scheme was launched to encourage innovation and creativity in startups. Under this scheme, 80% rebate for patent filing fees and 50% for trademark filing is provided to startups.19
  • Support for International Patent Protection in Electronics & Information Technology (SIP-EIT) offers reimbursement up to 50% of expenses incurred in patent filing or $21,543 whichever is less.20
  • 1,029 facilitators empaneled by Startup India to assist startups in filing of patents and trademarks till July 2018.21

Sources: 18, 19, 20, 21