Prime Minister Narendra Modi’s pet scheme to boost entrepreneurship — Startup India, which was launched in 2016, is bearing fruits for entrepreneurs. The number of startups recognised under the scheme has jumped 97 per cent to 17,694 till March 2019 from 8,939 till March 2018, according to the data sourced from the Ministry of Commerce and Industry.
The number, however, has further increased to 17,713 as on April 11 as per the Startup India website.
The jump in funding provided to startups by Alternative Investment Funds (AIF) is even higher at 146 per cent. From Rs 569.58 crore deployed by AIFs as on March 31, 2018, the amount increased to Rs 1403.55 crore as on March 31, 2019.
Till the end of March last year, 120 startups were funded by AIFs compared to 218 startups for the same period this year, the data showed.
“The Government has been supporting the startup ecosystem to realize the full benefit of the entrepreneurial and innovative spirit of young Indians. Through Rs 10,000 crore Fund of Funds, the government has supported 35 AIFs. As of January 11, 2019, commitments of Rs 1750.70 crore to 35 venture capital funds (VCFs) have been made under the Startup India Action Plan,” a government official told Financial Express Online.
The selected VCFs are expected to raise an overall corpus of Rs 17,963 crore. Also, 13,176 recognised startups have reported 1,48,897 jobs, the official responded to an email query sent by Financial Express Online.
In terms of geographic spread, 45 per cent of the Department for Promotion of Industry and Internal Trade recognised startups are from tier II and III cities while women entrepreneurs make up for just 9 per cent of the startups founded in India.
The average age of startup founders is 28 years in India.
Ruling party BJP in its manifesto released on Monday had outlined multiple sops for startups in India. the growth map for startups in India including a seed startup fund worth Rs 20,000 crore and collateral-free credit up to Rs 50 lakh for entrepreneurs under a new loan scheme.
The party also announced that it will facilitate setting up of 50,000 new startups in India by 2024. Currently, there are 17,578 startups registered under Startup India programme and 182 have been funded.
This is a fantastic objective and vision and it will transform India. Angel tax is now a dead issue and the biggest challenge for startups is lack of seed funding which the government will solve, former Infosys s chief financial officer and technology investor T V Mohandas Pai had told Financial Express Online.