Updated: 15-01-2026 at 3:30 PM
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The Startup India Initiative is designed to nurture entrepreneurship and shift India from a job-seeking economy to a job-creating one. Before 2016, the country faced a visible gap in home-grown startups, limited risk capital, and relatively low Foreign Direct Investment (FDI) in innovation-driven sectors. This structural challenge paved the way for a transformational policy framework.
Innovation and fresh ideas play a crucial role in helping a nation achieve long-term prosperity and sustainable development. For decades, India was widely known as an outsourcing hub, where multinational companies benefited from low-cost, skilled labour. While this created employment, it limited India’s ability to build strong indigenous enterprises and globally competitive companies.
Before understanding the scheme in detail, the table below offers a concise snapshot of the Startup India Initiative, covering its objectives, launch details, and application process for quick reference.
| Name of the scheme | Startup India initiative |
|---|---|
| Launched in | 2016 |
| Launched by | Department of Promotion of Industry and Internal Trade (DPIIT) |
| Objective | To empower startups, boost entrepreneurship, and increase economic growth in the country. |
| Application process | Online |
Read More: Startup India Seed Fund Scheme
The Startup India initiative was launched on January 16, 2016, by Prime Minister Narendra Modi. This govt scheme was flagged off to promote and nurture innovation in the country. The youth will be assisted in turning their valuable ideas into companies and organisations.
The Sarkari Yojana is administered by the Department of Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry. The scheme aims to empower startups, boost entrepreneurship and increase economic growth in the country. This startup scheme mainly provides financial assistance to new startups in India and helps them grow.
The major motto of the Startup India scheme is to create employment in the country. It wishes to transform India from a country of job seekers to one of job creators. It works in furtherance of the ‘Aatmanirbhar Bharat’ Abhiyaan.
The economic and structural challenges led to the launch of the scheme, and the government aimed to solve these through it.
India needed:
More indigenous companies, rather than relying on outsourcing.
A structured startup funding ecosystem.
Policy reforms to simplify compliance and taxation.
Employment generation through innovation-driven enterprises.
The Startup India Initiative addressed these gaps by combining funding access, tax relief, mentorship, and regulatory easing under a single national framework.
The government and the Department of Promotion of Industry and Internal Trade have started various ventures and initiatives to generate awareness amongst the masses about this startup scheme. Many more initiatives have been taken under the scheme. Let us have a look at them!
State Startup Ranking: The states in the country are ranked based on the number of startups and the success of these startups. Such startups are supplied with multiple financial, advisory and other benefits to help them grow. In the last edition of the rankings, Gujarat was the best performer.
National Startup Awards: As a measure of motivation, the government has also started the National Startup Awards, which reward and acknowledge successful startups.
Seed Fund Scheme: Under the seed fund scheme, the government provides financial assistance for the development of prototypes and entering the market. It helps founders fund their startups and introduces them to the market.
MAARG (Mentorship, Advisory, Assistance, Resilience and Growth): MAARG is a platform that is aimed at providing mentorship and advice to budding entrepreneurs to help them take their organisations to new heights.
Read More: Exploring Group Insurance Options For Startup Ventures
There are several features of the Startup India Scheme that comprise all its unique details. Some of its features are:
The scheme provides self-certification to startups to reduce regulatory expenses.
The government of India also provides legal aid to startups at very low prices for quick patent evaluation.
Under the scheme, the govt provides startups with a starting fund worth Rs. 2500 crore and expects to gain around Rs. 10,000 crore in 4 years.
The government gives several other benefits to startups as well, such as tax exemption, a credit guarantee plan, and promoting biotechnology entrepreneurship.
These features collectively strengthen the foundation of every Startup India Initiative company.
The Startup India scheme has multiple benefits for entrepreneurs and startups. Let us have a look at them!
Tax Benefits: No tax to be paid for the first 3 years of operation of the Startup. These organisations also don’t have to pay capital gains tax for the initial 3 years of operation.
IPR Protection: The government is working on formulating better intellectual property rights laws and rules to extend better industry practices and security to startups.
Insolvency and Bankruptcy Code: The Code is comparatively lenient towards startups for the winding-up and closing-down process.
Job Creation: With the beginning of startups in India, the employment sector will boom with jobs. India will be able to realise its dream of being a job creator.
Startup Pool: The government scheme has a funding pool of Rs. 10,000 Crores to extend financial assistance to startups.
While the scheme does not regulate wages directly, the Startup India Initiative's salary impact is visible through job creation across sectors such as IT, manufacturing, healthcare, and green energy. Startups often offer competitive, skill-based remuneration aligned with market demand, stock options, and performance incentives.
3 types of organisations are eligible to apply for the Startup India registration. Those 3 eligible organisations are:
Partnership Corporation,
Limited Liability Partnership (LLP).
Private Limited Company.
Each eligible Startup India Initiative company must be incorporated in India and comply with DPIIT guidelines.
Also Read: O-SMART Scheme
To qualify, startups must meet the following Startup India Initiative eligibility conditions:
The period for which the company has been operating and in existence must not be over 10 years.
The company should be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP).
The annual turnover must not exceed Rs. 100 Crore for any year since its inception.
The startup should have a scalable business model and work towards developing or improving a product, process, or service.
Meeting these criteria is mandatory to access benefits and download the Startup India Scheme PDF from the official portal.
The procedure to apply for a Startup India scheme and avail of its benefits is mentioned below. Please follow the steps and apply successfully:
Step 1: Visit the official Startup India website.
Step 2: Click on DPIIT Recognition.
Step 3: Apply to obtain recognition by DPIIT after meeting the eligibility conditions.
Step 4: Fill out the application forms with all the necessary details.
Step 5: Upload the required documents along with your application.
Step 6: After approval, you shall receive a recognition number from DPIIT.
Startups are required to submit some supporting documents to successfully apply for the scheme. The list of those documents is as follows:
Self-certificate.
Incorporation certificate of business.
Startup India Registration.
These documents are essential for successful recognition under the Startup India Initiative.
The official Startup India Scheme PDF provides comprehensive guidelines, eligibility rules, tax benefits, and compliance details. Entrepreneurs should refer to it before applying to ensure an accurate understanding and smooth approval.
The Startup India Initiative has emerged as a cornerstone of India’s entrepreneurial transformation. From fewer than 5,000 startups in 2016 to over 1 lakh recognised startups today, the scheme has reshaped the country’s innovation landscape.
By reducing regulatory barriers, offering funding support, and promoting mentorship, the initiative empowers young founders to dream big and build sustainably. The success of the scheme reflects India’s growing confidence as a global startup hub.
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