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Startup India Initiative — Govt Scheme for UPSC | Vaidra
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Startup India Initiative

Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & IndustryactiveemploymentLaunched: 2016-01-16

About the Scheme

Startup India aims to build a strong ecosystem for innovation and entrepreneurship. India is now the 3rd largest startup ecosystem globally with 1.58 lakh DPIIT-recognized startups (Jan 2026). DPIIT recognized 50+ startups as unicorns; ₹10,000 crore Fund of Funds for Startups (FFS) and ₹945 crore Startup India Seed Fund operational.

Target Beneficiaries: 1.58 lakh DPIIT-recognized startups (Jan 2026); 53 unicorns; 48 states/UTs with startup policies

Implementing Agency: Department for Promotion of Industry and Internal Trade (DPIIT)

Official Website →

✦Key Features

  • 1.58 lakh DPIIT-recognized startups as of Jan 2026 — 3rd largest startup ecosystem globally
  • 53 unicorns (startups valued at $1 billion+); 23+ soonicorns (approaching unicorn status)
  • Fund of Funds for Startups (FFS): ₹10,000 crore; 114+ AIFs funded; ₹23,500+ crore in startups
  • 3 years tax holiday in first 10 years of incorporation
  • Self-certification for 9 labour and 3 environmental laws
  • National Startup Awards annually for outstanding startups
  • Startup India Hub: 1.3 lakh+ members; mentorship and networking

✓Eligibility Criteria

  • Incorporated as a Private Limited Company or a Registered Partnership Firm or an LLP.
  • Not older than 10 years from the date of incorporation.
  • Annual turnover not exceeding INR 100 Crore for any financial year since incorporation.
  • Working towards innovation, development or improvement of products or processes or services.
  • Should not be a result of splitting up or reconstruction of an existing business.

★Benefits

  • Access to government funding schemes and venture capital.
  • Relief from income tax for a specified period.
  • Simplified regulatory environment and reduced compliance costs.
  • Opportunities for government procurement and public tenders.
  • Mentorship, incubation support, and networking opportunities.

▶Application Process

  • Register on the Startup India portal.
  • Obtain DPIIT recognition for eligible startups.
  • Apply for specific benefits (e.g., tax exemption, funding) through relevant portals.
  • Submit required documents and undergo verification.
  • Participate in mentorship and incubation programs as applicable.

₹ Budget Allocation

10000

UPSC Relevance

GS Paper: GS3

Prelims Relevance8%
Mains Relevance9%

Syllabus Tags

EntrepreneurshipStartupsInnovationEconomyGS3