Table of Contents
India’s Recognised Startups Create Over 15.5 Lakh Direct Jobs
India’s startup ecosystem has witnessed a significant growth, with over 1.4 lakh recognised startups creating more than 15.5 lakh direct jobs in the country. This was revealed by the Minister of State (Independent Charge) for Skill Development and Entrepreneurship, Jayant Chaudhary, in a reply to a question in the Lok Sabha.
Government Initiatives
- Atal Innovation Mission (AIM): Launched in 2016, AIM supports innovation and entrepreneurship, with a focus on incubation, funding, and mentorship.
- Department for Promotion of Industry and Internal Trade (DPIIT): Responsible for promoting and developing the startup ecosystem in India.
- Startup Village Entrepreneurship Programme (SVEP): Aims to promote entrepreneurship and startup culture in rural areas.
- Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 Scheme: Supports startups working with emerging technologies in the ICT domain.
Startup Village Entrepreneurship Programme (SVEP)
The Startup Village Entrepreneurship Programme (SVEP) is a sub-component of the Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM). The objective of SVEP is to help the rural poor come out of poverty by creating an ecosystem for entrepreneurship development in rural areas.
SVEP aims to support entrepreneurs in rural areas to set up their enterprises, providing them with necessary assistance and resources. The program develops an ecosystem for enterprise development in rural areas, which consists of the Community Enterprise Fund (CEF) for enterprise financing.
Role of SVEP Development
SVEP plays a critical role in bridging the gap between rural and urban areas by promoting entrepreneurship and enterprise development in rural areas. It is implemented by the Department for Promotion of Industry and Internal Trade (DPIIT) and is an important initiative for rural development. Overall, SVEP is a significant program that aims to promote entrepreneurship and enterprise development in rural areas, thereby contributing to the overall growth and development of the country.
Department for Promotion of Industry and Internal Trade (DPIIT)
The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry in India. It is responsible for the formulation and implementation of promotional and developmental measures for the growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. DPIIT plays a crucial role in promoting and developing the startup ecosystem in India. It is the nodal department for coordinating and implementing programs with the United Nations Industrial Development Organization (UNIDO) in India.
Key Initiatives
- State Ranking Framework
- National Startup Awards
- Seed Fund Scheme
- MAARG
- SCO (Shanghai Cooperation Organisation)
- Startup India Investor Connect
These initiatives aim to facilitate the growth of startups in India, provide them with necessary assistance, and promote entrepreneurship and innovation.
Responsibilities DPIIT:
- Formulating and implementing industrial policies
- Facilitating and increasing foreign direct investment (FDI) flows to the country
- Coordinating with other ministries and departments to promote the industrial sector
- Implementing programs with international organizations like UNIDO
Overall, DPIIT plays a vital role in promoting the growth of industries and startups in India, and its initiatives have contributed significantly to the country’s economic development.
Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 Scheme
The Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 Scheme is a program supported by the Ministry of Electronics and Information Technology (MeitY) to foster innovations and support startups working with emerging technologies in the Information and Communications Technology (ICT) domains.
The main objective of TIDE 2.0 is to promote tech entrepreneurship through financial and technical support to ICT startups engaged in using emerging technologies such as IoT, AI, Block-chain, Robotics, etc. in eight pre-identified areas of societal relevance.
Eligibility
There are two categories of eligibility:
Entrepreneur in Residence (EiR)
- The applicant should be a resident of India.
- The applicant should be an undergraduate degree holder or a final year student.
- The applicant should not have any other source of funding.
- The applicant should solely be committed to exploring his/her business idea.
- The applicant should not be the promoter or shareholder/beneficiary of any other company.
Grant
- The applicant should be a resident of India.
- The applicant should be an undergraduate degree holder or a final year student.
- The applicant can apply as a private limited company.
- The applicant should have a definite Proof of Concept (PoC), which needs to be further developed into Minimum Viable Product (MVP).
Focused Sectors
The scheme focuses on the following sectors:
- Healthcare
- Education
- Agriculture
- Infrastructure and Transportation
- Environment and Clean Tech
- Clean Energy Solutions
- Financial Inclusion Including Digital Payments
- Other Emerging Areas
Financial Support
The scheme offers two types of financial support:
- EiR: 4 EiR Fellowships of Rs 4 Lakhs per startup for 1 year may be provided to any applicant having an idea, who then can start working for validation and development of that idea.
- Grant: 4 grants of Rs 7 Lakhs per startup for 1 year may be provided to any applicant having a Proof of Concept (PoC), who then can start working for further conversion into Minimum Viable Product (MVP).
TIDE 2.0 Offers
In addition to financial support, TIDE 2.0 offers:
- Co-Working and Infrastructure Facilities (Labs)
- Workshop Facilities and Utilities
- Funding and Further Opportunities for Investment
- Technical and Business Mentoring
- Business Support and Networking
The scheme aims to strengthen 2000 Technology Startups, leveraging ICT-enabled technologies, in selected areas of national concern.
India’s Startup Ecosystem Ranks Third Globally
Prime Minister Narendra Modi recently announced that India has emerged as the third-largest startup ecosystem in the world. This achievement is a testament to the country’s growing entrepreneurial spirit and innovative mindset.
Rise of Indian Startups
According to the latest data, India is home to 105 unicorns, with the number of early-stage deals increasing by 64.3%. The country’s startup ecosystem has witnessed significant growth, with Mumbai rising five places to #31 and Delhi ranking #23 in the Global Startup Ecosystem Report (GSER).
Global Rankings
The GSER report highlights the top startup ecosystems globally, with India ranking third behind the US and China. Boston and Beijing, which were previously ranked first and second, have moved down two spots. Singapore has entered the top 10 ecosystems for the first time, moving up an impressive 10 places from #18 last year.
Indian Cities on the Rise
Mumbai has seen a 57% boost in Ecosystem Value, with the number of unicorns increasing from six to 15. Delhi has also witnessed significant growth, with the count of early-stage deals increasing by 64.3%. Other Indian cities, such as Bengaluru and Hyderabad, are also emerging as startup hubs.
Government Support
The Indian government has been actively promoting the startup ecosystem through various initiatives, such as the Startup India program, Department for Promotion of Industry and Internal Trade (DPIIT), Startup Village Entrepreneurship Programme (SVEP), and Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 Scheme. These initiatives have provided funding, mentorship, and infrastructure support to startups, enabling them to grow and thrive.
Future Outlook
With India’s startup ecosystem ranking third globally, the future looks promising for Indian entrepreneurs. The country is expected to continue its upward trajectory, with more startups emerging in various sectors, including technology, healthcare, and education.
Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM) is a flagship initiative of the Government of India, set up in 2016, to promote innovation and entrepreneurship in the country. AIM is a part of the NITI Aayog, the premier policy think tank of the Government of India.
The primary objectives of AIM are:
- Promote innovation: Encourage innovation and entrepreneurship in various sectors, including education, healthcare, energy, and more.
- Foster entrepreneurship: Support startups and entrepreneurs, especially in the early stages, to help them overcome challenges and scale up.
- Develop innovation ecosystem: Create a robust innovation ecosystem in India, comprising of incubators, accelerators, and makerspaces.
AIM has launched several initiatives to achieve its objectives:
- Atal Incubation Centres (AICs): AIM has established a network of incubators across the country, providing funding, mentorship, and infrastructure support to startups.
- Atal Tinkering Laboratories (ATLs): AIM has set up over 5,000 ATLs in schools across India, providing students with hands-on experience in innovation and entrepreneurship.
- Atal New India Challenges (ANICs): AIM has launched a series of challenges, focusing on specific sectors, to encourage innovation and entrepreneurship.
- Mentorship programs: AIM provides mentorship support to startups and entrepreneurs, connecting them with industry experts and thought leaders.
AIM has had a significant impact on the Indian innovation ecosystem:
- Over 10,000 startups supported: AIM has supported over 10,000 startups, creating jobs and driving economic growth.
- 500+ incubators and accelerators: AIM has established a network of over 500 incubators and accelerators, providing support to startups across the country.
- 1 million+ students impacted: AIM’s ATLs have impacted over 1 million students, promoting innovation and entrepreneurship among the youth.
AIM continues to play a vital role in promoting innovation and entrepreneurship in India, driving economic growth and job creation.
Economic Impact
The startup ecosystem in India has had a significant economic impact, with:
- Over 1.4 lakh recognized startups: Creating more than 15.5 lakh direct jobs.
- 114 unicorns: With a combined valuation of $350 billion as of March 2024.
- Contribution to GDP: The government aims to increase the contribution of startups and MSMEs to India’s GDP to 50% by 2024, from the current 29%.
- Job creation: The government aims to provide jobs to 15 crore Indians, up from 11 crores currently.
Conclusion
India’s startup ecosystem has reached a significant milestone, with over a lakh of recognised startups creating direct employment opportunities for millions. This achievement is a testament to the country’s entrepreneurial spirit, innovative mindset, and supportive policies. As the ecosystem continues to grow, it is poised to play a vital role in driving India’s economic growth, fostering innovation, and creating jobs for the future. The success of Indian tech startups has garnered global recognition, attracting substantial foreign investment and fostering international partnerships. This influx of capital has fueled the growth of the startup ecosystem, enabling startups to expand their operations, reach new markets, and further contribute to the country’s economic development.
FAQ’s
Q: How many recognized startups are there in India?
A: There are over 1.4 lakh recognized startups in India.
Q: How many direct jobs have been created by these startups?
A: These startups have created more than 15.5 lakh direct jobs.
Q: What is the objective of the Startup Village Entrepreneurship Programme (SVEP)?
A: The objective of SVEP is to promote entrepreneurship and startup culture in rural areas.
Q: What is the role of the Department for Promotion of Industry and Internal Trade (DPIIT)?
A: DPIIT is responsible for promoting and developing the startup ecosystem in India.
Q: What is the Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 Scheme?
A: TIDE 2.0 is a program that supports startups working with emerging technologies in the ICT
Q: What is the ranking of India's startup ecosystem globally?
A: India's startup ecosystem ranks third globally, behind the US and China.
Q: What is the Atal Innovation Mission (AIM)?
A: AIM is a flagship initiative of the Government of India to promote innovation and entrepreneurship in the country.