Startup India
Building a strong ecosystem for innovation and entrepreneurship.
The Startup India initiative was launched on 16 January 2016. It is a flagship programme of the Government of India intended to build a strong ecosystem for nurturing innovation and startups, driving sustainable economic growth and generating large-scale employment opportunities.
Scheme at a Glance
| Launched | 16 January 2016 |
| Nodal Department | DPIIT, Ministry of Commerce & Industry |
| Recognition | DPIIT-recognised startups |
| Tax Holiday | 3 consecutive years out of first 10 years |
| Funding Support | Fund of Funds for Startups (FFS) |
Three Pillars / Benefits
- Simplification & handholding: Self-certification, easy compliance and a single-window mobile app/portal.
- Funding & incentives: Fund of Funds, tax exemptions and credit guarantee support.
- Industry-academia partnership & incubation: Setting up of incubators and innovation labs.
- Faster patent examination with rebates on filing fees.
- DPIIT stands for the Department for Promotion of Industry and Internal Trade.
- 16 January is celebrated as National Startup Day.
- India has one of the largest startup ecosystems in the world, with a rapidly growing number of unicorns.
Practice MCQs
Q1. In which year was Startup India launched?
a) 2014 b) 2015 c) 2016 d) 2017
Answer: c) 2016
Q2. Which department is the nodal body for Startup India?
a) DPIIT b) SEBI c) RBI d) NITI Aayog
Answer: a) DPIIT
Q3. National Startup Day is celebrated on:
a) 1 January b) 16 January c) 26 January d) 15 August
Answer: b) 16 January
Q4. Recognised startups can avail an income-tax holiday for how many years (out of the first 10)?
a) 1 year b) 2 years c) 3 years d) 5 years
Answer: c) 3 years
Q5. The dedicated funding mechanism under Startup India is called:
a) Fund of Funds for Startups b) MUDRA Fund c) Venture Capital Fund d) SIDBI Fund
Answer: a) Fund of Funds for Startups