With a purpose to create a robust ecosystem of the nation for fostering innovation and encouraging startups, the government introduced the Startup India initiative on January 16, 2016.
Major Investment in AI, New-Age Tech, and Machine-Building Sectors
The Ministry of Commerce and Industry will invest a significant portion of the second ₹10,000 crore Fund of Funds Scheme (FFS) in startups to young entrepreneurs in new-age technology, artificial intelligence, and machine-building sectors, an official stated.
Second Fund of Funds Scheme Launched in Union Budget
In the Budget, the government introduced a new FFS with a corpus of ₹10,000 crore. In 2016 too, the government had introduced a similar scheme.
“We are going to dedicate a lot of this ₹10,000 crore fund of funds largely for the new age tech, AI, and machine building,” the official said.
SIDBI to Manage the Fund for Startups Again
The 2016 scheme was established to spur venture capital investment and is managed by the Small Industries Development Bank of India (SIDBI), which infuses capital into Securities and Exchange Board of India (SEBI)-registered AIFs, which invest in startups.
SIDBI will also be tasked with running the second scheme, the official further added.
Over 1.5 Lakh Startups Recognized Since 2016
With the view of creating a robust ecosystem of the nation for incubating innovation and supporting startups, the government initiated the Startup India programme on January 16, 2016.
According to the government’s eligibility criteria, organizations are declared ‘startups’ under the Startup India program by the department. More than 1,50,000 organizations have been declared as startups under more than 55 sectors so far.
Tax and Non-Tax Incentives Under Startup India Action Plan
These units are eligible for tax as well as non-tax incentives under the action plan of Startup India.