Boosting Startup Investments through Bharat Startup Ecosystem Registry

GS-3 Mains

Government Initiative

The government plans to use the Bharat Startup Ecosystem Registry to facilitate startup investments.

About the Registry

Part of the Startup India program.
Aims to unite and support various stakeholders in India’s startup ecosystem.
Creates a transparent system for startups to attract investments (domestic & global).
Serves as a comprehensive database for:
- Investors
- Incubators
- Academia
- Government bodies
- Mentors
- Industry bodies

India’s Thriving Startup Ecosystem

India ranks 3rd globally with over 1.12 lakh DPIIT-recognized startups (as of Oct 3, 2023).
Ranks 2nd for innovation quality (scientific publications & university quality).
114,902 entities recognized under Startup India initiative, with over 54,569 having at least one woman director.
Innovation spans sectors like DeepTech, SpaceTech, AI, and Electric Vehicles (EVs).

Significance of Startups

Indian unicorns are a national asset worth $350 billion (collective value in the last eight years).
Develop innovative solutions, technologies, and generate large-scale employment.
Many startups operate in remote areas, supporting local communities and economies.
Contributing to creating a sustainable EV ecosystem alongside the government.
Driving advancements in healthcare (patient management, data analysis, insurance claims).
Women play a significant role in India’s entrepreneurial journey.

Government Support Initiatives

Startup India (Jan 2016): Aims to build a strong domestic startup ecosystem and foster innovation & investment.
DPIIT-recognized startups get access to various incentives:
- Fund of Funds for Startups (FFS)
- Startup India Seed Fund Scheme (SISFS)
- Credit Guarantee Scheme for Startups (CGSS)
Startup India Seed Fund Scheme: Approved for four years (from FY22) with an outlay of ₹945 crore.
- Provides financial assistance for proof of concept, prototyping, product trials, market entry, and commercialization.
Startup Mahakumbh: A two-day event showcasing India’s startup prowess and fostering collaboration within the ecosystem.
Green Mobility Push: Creates opportunities for businesses in charging infrastructure, battery recycling, and energy storage solutions.
Startup20: An engagement group under India’s G20 presidency highlights the importance of startups in driving economic growth and innovation globally.
Private sector playing an increasing role in supporting entrepreneurs.
Policy for deep-tech startups in the final stages of consultation.
₹1 lakh crore fund announced for long-term, low-cost/zero-interest R&D loans.
Other initiatives: Atal Innovation Mission, Production-Linked Initiative (PLI) schemes create a growth-conducive environment.

Challenges

Regulatory hurdles and obtaining approvals/licenses.
Lack of infrastructure.
Need for more skilled talent.
Urban-centric startup presence.
Difficulty for social enterprises to secure investment (untested models/technologies).
Challenging year for startups in 2023 (lowest funding since 2016).

The Road Ahead

Diverse Indian startups cover health-tech, climate-tech, clean energy, and deep-tech domains.
Well-positioned to leverage opportunities in sunrise sectors (industries poised for rapid growth).
Significant progress made, but more needed to make India a global entrepreneurial hub.
Expand incentive schemes (like Drone & Kisan Shakti) to include emerging technologies across sectors.