Since the launch of Startup India in January 2016, Department of Industrial Policy and Promotion (DIPP) has recognised over 2,196 ventures and have eased the process of patent filing and credit availability for them.
According to government data, there has been a rise in registrations of startups in recent months. Over 800 startups have been recognised by the DIPP in the last two months alone.
During May 2017, the government made changes in the definition of startups and did away with the requirement of a recommendation letter from an incubator. In the definition, the government also included “scalability of business model with potential of employment generation or wealth creation.”
“We are yet to assess the job creation potential pegged by startups who have registered with us but the response is encouraging,” a senior official told ET.
Only a few of these, about 50 startups, have qualified for three years of tax holiday in a block of seven years if they are incorporated after April 1, 2016.
In its new rule, the government has also increased maximum age of startups from five years to seven years. For the biotechnology sector, the period was increased up to 10 years from the date of incorporation as the sector requires longer gestation period.
With the new definition now in place, more startups would be eligible to get tax benefits announced in last year’s action plan. “These changes are an effort to ensure ease of starting up new businesses to promote the Startup ecosystem and build a nation of job creators, instead of job seekers,” a press statement by DIPP had said.
Besides, the government has been working continuously to address the issue in the startup ecosystem and weed out inefficiency.
Two months ago, it launched Startup India Virtual Hub, an online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other.