Unprecedented Growth: DPIIT Recognizes 1.40 Lakh Startups In June 2024
In June 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) recognized 1.40 lakh startups. This milestone reflects the rapid growth of India’s startup ecosystem. Startups in India are receiving various benefits and support to nurture innovation and investments. Let’s dive into the details and understand the significance of this achievement.
What is DPIIT?
DPIIT stands for the Department for Promotion of Industry and Internal Trade. It is a part of the Ministry of Commerce and Industry. DPIIT promotes industrial growth and trade in India. It also supports startups through policies and incentives. DPIIT helps create a strong ecosystem for innovation and entrepreneurship. Established to replace the Department of Industrial Policy & Promotion (DIPP), DPIIT has been crucial in boosting India’s economic growth.
The Recognition of 1.40 Lakh Startups
DPIIT recognized 1.40 lakh Startups by June 30, 2024. This remarkable growth highlights the thriving startup culture in India. These recognized startups can now access a host of incentives. Benefits include income tax exemptions and easier access to funding. The Startup India action plan, launched in 2016, provides these incentives. The government aims to build a strong foundation for innovation and investment in Startups.
Top States for Startups
Maharashtra leads with over 25,000 recognized Startups. Karnataka follows with 15,019 Startups, and Delhi has 14,734. Uttar Pradesh and Gujarat also have significant numbers, with 13,299 and 11,436 startups, respectively. These states have created supportive environments for Startups to flourish.
Financial Support for Startups
Startup India Seed Fund Scheme
The Startup India Seed Fund Scheme provides crucial financial support. As of June 30, 2024, Rs 90.52 crore was approved for Startups. This amount is less compared to Rs 186.19 crore in 2023. The number of Startups receiving this support also decreased from 1,025 in 2023 to 592 in 2024.
Fund of Funds for Startups
Under the Fund of Funds for Startups, Rs 805.86 crore was invested by Alternate Investment Funds (AIFs) as of June 30, 2024. This is significantly lower than Rs 3,366.48 crore invested in 2023. The number of startups supported by AIFs also dropped from 148 in 2023 to 96 in 2024.
Credit Guarantee Scheme for Startups
The Credit Guarantee Scheme for Startups guaranteed loans worth Rs 154.60 crore as of June 30, 2024. This is down from Rs 271.49 crore in 2023. The number of guaranteed loans also decreased from 107 in 2023 to 75 in 2024.
The Role of ONDC
The Open Network for Digital Commerce (ONDC) is another DPIIT initiative. It promotes open networks for digital transactions. ONDC is not an app but a digital public infrastructure. As of June 2024, ONDC had over 5.7 lakh sellers and service providers. It witnessed rapid growth, with transactions increasing from 1,000 in January 2023 to over 9.9 million in June 2024.
The Impact of Recognizing 1.40 Lakh Startups
Recognizing 1.40 lakh Startups has several positive impacts. It encourages more entrepreneurs to start their ventures. The financial support and incentives help Startups grow and succeed. It also attracts more investments into the Indian startup ecosystem. The success of Startups can create more jobs and drive economic growth.
The Startup India Initiative
Launched on January 16, 2016, the Startup India initiative aims to build a robust ecosystem for nurturing innovation. The initiative provides benefits like income tax exemptions, easier patent filing, and access to funds. It also includes the Startup India Seed Fund Scheme, which offers financial support to early-stage startups. The Fund of Funds for Startups provides investments through AIFs. The Credit Guarantee Scheme for Startups ensures loans for startup borrowers.
Future Prospects
The recognition of 1.40 lakh Startups marks a significant milestone. However, the focus must remain on sustaining and growing this ecosystem. Continuous support and new policies are essential for Startups to thrive. The government and DPIIT must address the challenges faced by Startups. Ensuring easier access to funding, improving infrastructure, and fostering innovation are crucial steps.
Conclusion
Unprecedented Growth: DPIIT Recognizes 1.40 Lakh Startups In June 2024 reflects the dynamic and growing startup culture in India. DPIIT’s efforts to support Startups through various schemes and incentives are commendable. The recognition of these Startups and the support they receive play a vital role in driving innovation and economic growth. The journey of these Startups will shape the future of India’s economy, and continuous support will ensure their success.
Here are the references with links to the relevant sources:
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Department for Promotion of Industry and Internal Trade (DPIIT)
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Startup India Action Plan
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Ministry of Commerce and Industry, Government of India
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Open Network for Digital Commerce (ONDC)
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