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Startup India

Brief about the Scheme

Startup India is a flagship initiative of the Government of India (launched January 2016), intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design. In order to meet the objectives of the initiative, Government of India announced Startup India Action Plan that addresses all aspects of the Startup ecosystem. With this Action Plan the Government hopes to accelerate spreading of the Startup movement: The Action Plan is divided across the following areas:

  • Simplification and Handholding
  • Funding Support and Incentives
  • Industry-Academia Partnership and Incubation

Detailed Write-up

  1. Scheme Objectives: The Action Plan is based on three pillars – Simplification and handholding, funding support and incentives, industry-academia partnership and incubation. Following are the 19 Action Points under the Startup India initiative:

    Simplification and handholding

    1. Compliance Regime based on Self-certification

    2. Startup India Hub

    3. Rolling out of Mobile App and Portal

    4. Legal Support and Fast-tracking Patent Examination at Lower Costs

    5. Relaxed Norms of Public Procurement for Startups

    6. Faster Exit for Startups

    Funding support and incentives

    1. Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 crore

    2. Credit Guarantee Fund for Startups

    3. Tax Exemption on Capital Gains

    4. Tax Exemption to Startups for 3 years

    5. Tax Exemption on Investments above Fair Market Value

    6. Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform

    Industry-academia partnership and incubation

    1. Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization (SETU) Program

    2. Harnessing Private Sector Expertise for Incubator Setup

    3. Building Innovation Centres at National Institutes

    4. Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras

    5. Promoting Startups in the Biotechnology Sector

    6. Launching of Innovation Focused Programs for Students

    7. Annual Incubator Grand Challenge

  2. Coverage & Eligibility: For coverage and eligibility under the scheme, an entity shall be considered as a ‘Startup’ -

    1. Up to five years from the date of its incorporation/registration,

    2. If its turnover for any of the financial years has not exceeded Rupees 25 crore, and

    3. It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.

  3. Budget Availability / Utilization since last 5 years*

  4. Physical Progress against milestones till the end of previous year (i.e. cumulative till 2015-16) and during the year 2016-17: Please find enclosed at Annexure I

  5. Salient Features in Bullet Form:

    • Easier access to funds for Startups

    • Easier compliance norms for Startups

    • Simpler regulations to help Startups register and stay in India

    • Easier access to infrastructure and mentorship through wider industry-academia collaboration

  6. Implementing Agency: Department of Industrial Policy and Promotion

  7. Monitoring and Review Mechanism: A Monitoring Committee meeting is conducted every month with all relevant stakeholders, including Department of Bio Technology, Department of Science & Technology, Ministry of Human Resource Development and NITI Aayog among others to review the progress of the Startup India initiative. Regular meetings with all concerned Departments/Ministries are also organized as and when required.

  8. Findings of Evaluation, if any

    No evaluation has been undertaken so far.

Scheme Guidelines (in searchable PDF / DOC) as amended up to 31.12.2016: Action Plan is available

Circulars / Notifications / Orders with file name indicating subject line in a self-explanatory manner: All circulars/notifications/orders are available

Budget Availability for the Scheme (Rs. In crore)


Plan Allocation

Plan Expenditure

Non-Plan Allocation

Non-Plan Expenditure





















As the scheme was launched only in January 2016 no Plan allocation was made during 2015-16.  However, the expenditure of Rs.2.66 crore was met from the budget head “Scheme for Investment Promotion

Year 2016-17 (In Rupees)


Plan Allocation

Plan Expenditure

Non-Plan Allocation

Non-Plan Expenditure