New Delhi: The government launched the Startup India initiative on January 16th, 2016, with the aim of promoting innovation and stimulating investments. The government unveiled an Action Plan for Startups, which consists of schemes and incentives designed to foster a dynamic startup environment. This Action Plan encompasses 19 action items covering areas like “Simplification and Handholding,” “Funding Support and Incentives,” and “Industry-Academia Partnership and Incubation.” Under the Startup India initiative, the government is executing various programs to identify, nurture, and empower startups to fulfill the specific goals of the Action Plan.
Within the framework of the Startup India initiative, the government is currently implementing three flagship schemes to aid startups at different stages of their business cycle: Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS).
SISFS provides financial aid to seed-stage startups through incubators, with a fund of Rs. 945 crore. In Tamil Nadu, 20 incubators have been approved with a total allocation of Rs. 86.10 crore, out of which Rs. 43.63 crore has been disbursed to approved incubators as of December 31st, 2023.
FFS aims to boost venture capital investments and is managed by the Small Industries Development Bank of India (SIDBI), which offers capital to SEBI-registered Alternative Investment Funds (AIFs) for investment in startups. FFS has a fund of Rs. 10,000 crore, and in Tamil Nadu, SIDBI has pledged Rs. 500 crore to 6 AIFs, of which Rs. 384 crore has been disbursed to the AIFs by December 31st, 2023.
CGSS facilitates collateral-free loans to DPIIT recognized startups through eligible financial institutions and is managed by the National Credit Guarantee Trustee Company (NCGTC) Limited. CGSS has been operational on a pilot basis since April 1st, 2023. In Tamil Nadu, a total of 5 loans amounting to Rs. 8.65 crore have been disbursed to eligible recognized startups by December 31st, 2023.
The government has implemented various programs under the Startup India initiative to achieve specific objectives. These initiatives are inclusive and are rolled out across states/Union Territories (UTs), cities, towns, and rural areas, including Tamil Nadu.
Thanks to sustained efforts under the Startup India initiative, the number of DPIIT recognized startups has surged from over 300 in 2016 to 117,254 as of December 31st, 2023. In Tamil Nadu alone, there are 7,559 DPIIT recognized startups as of December 31st, 2023.
This information was provided by Shri. Som Parkash, Union Minister of State for Commerce and Industry, in a written reply in the Rajya Sabha today.