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On 16th January 2016, Prime Minister Narendra Modi launched the Start Up India Action Plan, with an aim to build a strong eco-system for nurturing innovation and Startups in the country. Three years on, India has transformed into a big startup ecosystem in the world. The government has been working towards recognising the real potential of startups operating across diverse segments. The govt’s focus has been on three C’s – capital, courage and connections – which Prime Minister Modi describes as the main pre-requisites for setting up a business. Due to this, there has been a significant rise in entrepreneurs, particularly from Tier-2 and Tier-3 cities. The participation of women has also increased under the Startup India programme.

Prarambh: Startup India International Summit:

  • The Summit is being organized by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
  • The Summit marks the fifth anniversary of the Startup India initiative, launched on 16 January, 2016.
  • The Summit will be the largest startup confluence organised by the Government of India since the launch of the Startup India initiative.

Startup India:

  • Startup India is an initiative of the Government of India. The campaign was first announced by Indian Prime Minister, Narendra Modi during his speech in 15 August 2015 address from the Red Fort, in New Delhi.
  • The event was inaugurated on 16 January 2016
  • The action plan of this initiative is focussing on three areas:
    • Simplification and Handholding.
    • Funding Support and Incentives.
    • Industry-Academia Partnership and Incubation.
  • A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than ₹100 crore.
  • Under this initiative, the government has already launched the I-MADE program, to help Indian entrepreneurs build 10 lakh (1 million) mobile app start-ups, and the MUDRA Bank’s scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds.

Various benefits under it:

  • 10,000 crore startup funding pool.
  • Reduction in patent registration fees.
  • Improved Bankruptcy Code, to ensure a 90-day exit window.
  • Freedom from inspections for first 3 years of operation.
  • Freedom from Capital Gain Tax for first 3 years of operation.
  • Freedom from tax for first 3 years of operation.
  • Self-certification compliance.
  • Created an Innovation hub, under the Atal Innovation Mission.
  • To target 5 lakh schools, and involve 10 lakh children in innovation-related programmes.
  • New schemes to provide IPR protection to startup firms.
  • Built Startup Oasis as Rajasthan Incubation Center.

State rankings:

  • The second edition of the exercise was launched in 2019 and has now been completed with active participation of 22 states and 3 Union Territories.
    • Best performer: Gujarat, Andaman & Nicobar Islands
    • Top performers: Karnataka, Kerala
    • Leader: Maharashtra, Odisha, Rajasthan, Bihar, Chandigarh
    • Aspiring leaders: Telangana, Uttarakhand, Haryana, Jharkhand, Punjab, Nagaland
    • Emerging startup ecosystems: Chhattisgarh, Himachal Pradesh, Andhra Pradesh, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Assam, Delhi, Mizoram, Sikkim.


  • Indian Startups are now spread across the length and breath of the entire country.
  • The shift in global focus is on promoting women entrepreneurs and fostering an inclusive and innovative environment. Efforts are also being made by diverse stakeholders in the Indian startup ecosystem to elevate domestic policies in concurrence with global trends.
  • The role of the state government becomes very important in developing the necessary infrastructure and support to foster the startup ecosystem. Due to the given constraints of infrastructure and supporting services, India needs to build upon low-cost and high-impact solutions.
  • Although there has been an increase in angel and venture capital funding, the amount invested must be augmented. It is crucial that the ecosystem is well integrated to connect startups to fund houses and other stakeholders.
  • While it is important to elucidate overarching features of the ecosystem, this report delves deeper into the role of states and India’s federal structure in both building the ecosystem as well as closely monitoring futuristic measures that can aid India’s growth story.