Government earmarks Rs 126 crore for Startup India Seed Fund
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Last Updated: Feb 02, 2021, 08:24 PM IST
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The Startup India Seed Fund, which was announced by Prime Minister Narendra Modi last month, will become operational on April 1, 2021.
ETtech
Illustration: Rahul Awasthi
Bengaluru: The government has allocated Rs 126 crore towards the Startup India Seed Fund for the financial year 2021-22.
The fund aims to provide financial assistance to early stage startups in sectors such as water management, biotechnology and defence, which do not usually attract institutional venture capital funding.
The fund, announced by Prime Minister Narendra Modi last month, will become operational on April 1 and is looking to disburse Rs 945 crore over a period of five years. It will back eligible startups and incubators that will be evaluated by an Experts Advisory Committee (EAC) constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).
February 2, 2021
The last year had been a rude shock to everyone in the country, particularly for those who run small businesses and startups or work in the unorganised sector. As part of the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman announced several measures to improve the business and operating environment for small companies and startups.
Sitharaman also announced that the government would bring gig economy workers under the proposed labour code. “For first time globally, social security benefits will be extended to gig and platform workers. Minimum wages will apply to categories of workers. And they will all be covered by state insurance corporations,” she said
The first paperless Union Budget 2021-22 had evinced keen interest as the startup ecosystem tries to redefine its trajectory in the post-pandemic era. Over the years, startups have emerged as the new torchbearers of the Indian economy. As per the statistics, there are approximately 40,729 startups in India. A spate of policy initiatives such as revisiting the definition of startups, simplifying regulations, providing income exemptions, and setting up Fund of Funds has had a multiplier effect in terms of catalyzing entrepreneurship, generating employment, and giving a fillip to innovation besides encouraging the growth of startups.
Bolstered by a conducive policy landscape, the startup ecosystem has leapfrogged the traditional growth patterns to burgeon into the third-largest in the world, encompassing 38 unicorns. The COVID-19 pandemic has reaffirmed the significance of startups for exemplifying out-of-the-box thinking, creativity, and innovation. The disruption of the global
Beyond the noise: What Indian entrepreneurs need from Budget?
In two days, FM Nirmala Sitharaman will announce what will be India’s first post-COVID-19 Budget. This is on the back of a very difficult year for companies across sectors, and a lot is riding on this year’s Budget.
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In two days, Finance Minister Nirmala Sitharaman will announce what will be India’s first post-COVID-19 Budget. This is on the back of a very difficult year for companies across sectors, and a lot is riding on this year’s Budget.
YourStory spoke to key stakeholders from the startup ecosystem to understand their asks and needs to enable entrepreneurs to continue innovating in critical areas and realise Prime Minister Narendra Modi’s vision of an Aatmanirbhar Bharat.
Startup India Seed Fund to be operational from April 1
The Rs 945 crore Startup Indian Seed Fund Scheme will provide financial assistance to startups, and will be disbursed through selected incubators.
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The Rs 945 crore Startup India Seed Fund Scheme (SISFS) will be operational from April 1, 2021, to 2025 as the government looks to boost the ecosystem, providing the crucial capital for young companies.
The scheme will be implemented by the Department for Promotion of Industry and Internal Trade (DPIIT).
In a gazette notification, the government announced that Startup India Seed Fund Scheme will provide financial assistance to startups that have been recognised by the DPIIT and incorporated not more than