The Union government has therefore adopted several measures that have greatly supported the growth of the startup ecosystem in India. In the past five years, it planned more than 10,000 IT startups through different schemes and offered them assistance and funding. The above-mentioned remarkable achievements have recently been revealed by Mr Jitin Prasada, Minister of State for Electronics & Information Technology in his written reply to a question in Rajya Sabha.
Funding Details
The Centre provided Rs 580 crore of funding for incubation through incubators to the startups. Such incubators have helped promote innovation, support through mentoring plus the provision of resources. Of these, more than 3,600 tech start-ups were funded directly by the Ministry of Electronics & IT (MeitY) with a total amount mobilized to the tune of Rs 212 crore.
Flagship Schemes
From angel investors and venture capitalists, Fund of Funds for Startups (FFS) made possible investments. It served as an active marker for the startups who needed capital to fund their business. The Startup India Seed Fund Scheme (SISFS) aimed at providing seed capital to early-stage startups which were as follows: It discouraged the budding businessmen from turning their dreams into realities. Due to this realization of credit need, the Credit Guarantee Scheme for Startups (CGSS) facilitated startups in accessing credit. It relieved local pressures on finances and allowed them to concentrate on research and development.
MeitY’s Initiatives to bolster Startup Ecosystem
The Ministry of Electronics and Information Technology or MeitY aimed to support the startup through the following efforts. TIDE 2.0 was launched in 2019 as a Technology Incubation and Development of Entrepreneurs.TIDE 2.0 provided extended financial and technical support to institutes of higher learning and premier R& D organizations. from which it incurred an outlay of Rs 264.62 crore PRAGATI will provide over five years to fund innovation.
MeitY’s Startup Accelerator for Product Innovation, Development, and Growth (SAMRIDH) funded selected accelerators and offered accelerator support to startups. Funds of up to Rs 40 lakh matching the proposal accelerated their growth as well. Next Generation Incubation Scheme (NGIS) is targeted at incubating 300 tech startups in Tier-2 and Tier-3 cities over three years. Starting with an average budget of Rs 95.03 crore, NGIS was envisioned to spread innovation across the masses in India. Some of the CoEs implemented by MeitY included 42 CoEs where the ministry sought to encourage innovation in the use of new technologies. These centers projected India as a country capable of hosting research and developmental activities of the highest order.
Entrepreneur Parks and Incubation Centers
The vision of MeitY didn’t end with just the financial support. It formed Entrepreneur Parks that exist across India offering the ideal setting where new entrants could network, create, and experiment. Initiatives such as the Makers Village in Cochin, Kerala which was specifically focused on medical electronics aimed at enhancing electronics design manufacturing or EDA. The establishment of the Fabless Chip Design Incubation Center at IIT Hyderabad aimed at incubating and promoting chip design startups and in turn, helped build the semiconductor ecosystem in India.
Conclusion
Due to these concerted efforts, India today has more than 1.43 lakh recognized startups running through various sectors. This is a brief to the Department for Promotion of Industry and Internal Trade (DPIIT) for their immense contribution towards economic growth, employment, and technological development. India will remain on its quest for transformation into an innovation economy and the Centre continues to stand firm with startups as a symbol of hope.
Disclaimer – We have collected this information from various trustworthy sources on the Internet, and the facts have been checked manually and verified by our In House team.
