How does the Startup India Seed Fund Scheme work? Startup India Seed Fund Scheme (SISFS) offers funding support to startups for concept validation, prototype development, product testing, market entry, and commercialization. Startups that meet the requirements can apply for the program on the Startup India website.
Introduction: The goal of the Startup India Seed Fund Scheme is to offer funding assistance to startups for concept proofing, prototype development, product testing, market entry, and commercialization. The Indian government officially announced SISFS's approval on February 5, 2021. It was put into effect on April 1st, 2021, and has been approved for a four-year period. Shri Piyush Goyal, the honourable cabinet minister for railways, commerce and industry, consumer affairs, food, and public distribution, introduced the Startup India Seed Fund Scheme on April 19, 2021, with the goal of fostering the startup ecosystem in India.
Origin Of SISFs: During Prarambh, the Honorable Prime Minister, Shri Narendra Modi, announced the INR 1,000 crore Start-up India Seed Fund Scheme: International Start-up India Summit on January 15, 2021. The program was announced by the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, on January 21, 2021. 2021-2025 will show a total corpus of INR 945 crores. The 'Prarambh' Summit aims to give startups and young minds worldwide a platform to present new ideas, innovation, and invention.
The objective of SISFs: The SISFS's primary goal is to create a framework that offers financial aid to qualified startups1 (hereinafter referred to as "Startups") for concept testing, prototype development, product testing, market-entry, and commercialization.
Need of SISF Scheme: The seed and "Proof of Concept" development stages of the Indian startup ecosystem lack adequate capital. For startups with solid business ideas, the capital needed at this point can make or break their startup. Due to the lack of this crucial funding at an early stage, many innovative business ideas are not successful. If such promising cases are given seed funding, they can have a multiplier effect in validating the business plans of many startups, creating jobs for the nation. To increase the support of States and UTs in building their startup ecosystems holistically, a State Startup Ranking Framework has been established in India.
Eligibility Criteria for SISF Scheme: Startups must meet the following requirements to be eligible to apply for funding through the Startup India Seed Fund.
Scheme: -When the application is made, it must have been incorporated no longer than two years prior. -Under any other Central or State Government program, the startup should not have gotten more financial support than Rs 10 lakh. -The Department for Promotion of Industry and Internal Trade must recognize the new business (DPIIT). -Startups developing ground-breaking solutions in industries like social impact, waste and water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc. would be given preference. -When submitting the incubator's application for the program, the startup's Indian promoters must own at least 51% of the company's shares.
Advisory Committee Under SISF scheme: -A Chairman -Financial Advisor, DPIIT, or his representative -Additional Secretary/ Joint Secretary/ Director/ Deputy Secretary, DPIIT -One Representative each from: --Department of Biotechnology (DBT) --Department of Science & Technology (DST) --Ministry of Electronics and Information Technology (MeiTY) --Indian Council of Agricultural Research (ICAR) --NITI Aayog
Conclusion: Today, there are Indian startups spread out across the entire country. The emphasis of the global transition is on fostering inclusive and creative environments and supporting female entrepreneurs. In the Indian startup ecosystem, numerous stakeholders are also driving initiatives to advance domestic policies in line with international trends.
To create the necessary infrastructure and support the ecosystem's growth, the role of the state government becomes crucial. India must develop low-cost, high-impact solutions because of the infrastructure and additional service constraints. The amount of funding needs to be increased despite an increase in angel and experience capital funding. The ecosystem must be well integrated to connect startups with financial institutions and other stakeholders. While it is essential to highlight the fundamental characteristics of the ecosystem, this report goes into greater detail about the role that the states and India's federal system play in the country's edifice and ecosystem while closely examining cutting-edge strategies that can guide India's evolution.
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Article by: Salim Shaikh, & Image Source: Unsplash
29-Jan-2023 , 12:52 PM
28-Jan-2023 , 05:05 AM