Question : Strengthening of Startup Ecosystems

(a) the details of the progress made and number of startups/startup hubs registered so far under Startup India Programme since its inception, State/UT-wise;

(b) whether the existing ecological mechanism is sufficient to finance the startups in the country, if so, the details thereof;

(c) whether the Government has launched States startups ranking framework to rank States for establishing a robust ecosystem for supporting startups, if so, the details thereof; and

(d) the other proactive steps taken/ proposed to be taken by the Government to strengthen the startups ecosystems both at National and local level for desired encouragement to the startups in the country?

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI C.R. CHAUDHARY)


(a): The details of the progress made under ‘Startup India’ initiative since its inception are provided at Annexure I. So far, 7987 Startups have been recognised under the Startup India initiative.

(b): Government has taken number of steps to support the existing ecological mechanism to finance Startups. A ‘Fund of Funds for Startups (FFS)’ has been established under the Startup India initiative to provide funding support for Startups. Under the FFS, a total amount of Rs. 600 crore has been released to SIDBI. Further, Rs. 1050.7 crore has been committed by SIDBI to 24 Alternative Investment funds (AIFs) and Rs. 122.86 crore has been disbursed to 17 AIFs, who in turn have invested Rs. 517.92 crore in 109 Startups.

(c): Yes, Madam.The Government has launched the States’ startups ranking framework on 6 February, 2018. It is expected that this initiative shall support in achieving following objectives:

i. Help bring to fore progress made by the States/ UTs for promoting Startup ecosystem
ii. Foster competitiveness & propel the States/ UTs to work proactively
iii. Facilitate States/ UTs to identify, learn and replicate good practices

The ‘State Startup Ranking Framework’ is spread across 7 areas of interventions with a total of 38 action points and overall score of 100 marks. The areas of interventions include Startup policy and implementation, incubation support, seed funding support, venture funding support, simplified regulations, ease of public procurement and awareness and outreach. In order to evaluate States in a balanced and transparent manner, the implementation of action points shall be assessed on supporting documents submitted by the State Government as well as feedback from Startup ecosystem components. This exercise will trigger a healthy competition among the States and motivate them to provide robust ecosystem support to Startups.

(d): As per the Startup India Action Plan launched in January 2016, Startup India Hub was envisioned to work in a hub and spoke model and collaborate with Central & State governments. Since the launch of Startup India initiative, many State Governments have been facilitated by Startup India Hub to strengthen the startups ecosystems at the State level.

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