Startup India

Startup India is a flagship initiative of the Government of India, launched on 16 January 2016 and administered by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, to build a strong, self-sustaining ecosystem for nurturing innovation and start-ups across the country.

Objectives of Startup India include: promoting entrepreneurship and a culture of innovation; simplifying the regulatory and compliance environment for new ventures; generating large-scale employment, particularly for the country's young population; and strengthening India's overall economic growth by encouraging home-grown innovation rather than relying only on imported technology.

The initiative's action plan is generally organised around three broad areas:

1. Simplification and handholding -- a single-window Startup India portal for registration and information; self-certification for compliance under specified labour and environment laws; a simpler and faster process for winding up a failed start-up; and legal support along with fast-track examination of patent applications at a reduced fee.
2. Funding support and incentives -- a government-backed Fund of Funds for Startups that channels capital through registered venture capital funds; a Credit Guarantee Scheme that reduces the collateral burden on lenders financing start-ups; a period of income-tax exemption on profits (subject to inter-ministerial board approval); and relief from tax on certain investments that would otherwise be treated as income.
3. Industry-academia partnership and incubation -- setting up incubation centres, innovation labs, and research parks, often in partnership with academic institutions, so that ideas emerging from colleges and research bodies can be converted into viable ventures, and organising events and challenges to identify promising start-ups. …