In India, startups registered with the central government have yielded employment to around 6.5 lakh people.
Anurag Jain, the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary shared the information on Thursday, January 6. In an interview with Moneycontrol, he announced that DPIIT is strategising to generate 20 lakh new employment in the sector by officially registering 50,000 new startups in the upcoming four years, that is, by 2025.
The department acts as the nodal agency for the Startup initiative launched by the Government of India (GOI) in January 2016. The flagship initiative is intended to catalyse startups and create a solid and inclusive ecosystem for innovation and entrepreneurship. Jain stated that over 60,000 startups had been recognised since its launch, making India the third-largest startup hub globally.
Jain said, "The figure comes to 11 jobs per startup. The startup revolution is transforming our country from a nation of job seekers to job givers," reported Money Control.
The government had earlier based the numeral for employment generation on a formula that each directly created job in the sector contributes to three indirect jobs.
How Are Startups Benefitted
According to the official website of Startup India, getting recognised by the central government gives the following benefits to a startup-
- It gets an income-tax exemption for three consecutive years.
- It received an exemption on capital gains and investments above fair market value.
- It is helped in fast-tracking things and gets an 80 per cent rebate on patent filing.
- It is provided with an easy winding up of the enterprise within 90 days.
- It is facilitated with funding for investment through alternative investment funds.
The DPIIT Secretary informed that India has 736 districts, out of which 630 have registered startups, which are present in each state and union territory.
He said, "The startup movement is taking deep roots. What is interesting is that 45 per cent of all registered startups are from Tier II and Tier III towns. Also, 45 per cent of startups are led by women entrepreneurs. These are huge success stories," reported Money Control.
He stated that to realise the financial requirements of startups, the centre had set up a Rs 10,000-crore fund under the Small Industries Development Bank of India (SIDBI), and out of this, Rs 6,500 crore have been committed. He also announced that DPIIT has some plans for better development of startups in the country, such as innovation weeks, virtual exhibitions, and knowledge sessions.