In 2016, India recognised its first batch of startups under a brand-new government scheme. A decade later, that scheme has helped mint more than 130 billion-dollar companies.
Must Know
Startup India
Launch and Implementation
- LaunchedStartup India was launched on 16 January 2016.
- DepartmentIt is implemented by the Department for Promotion of Industry and Internal Trade (DPIIT).
DPIIT Recognition
- QualifyA firm must be under 10 years old, with turnover below Rs 200 crore, and work towards innovation.
- ScaleAs of 2026, over 2.35 lakh startups have received DPIIT recognition.
Tax Benefits
- ExemptionDPIIT-recognised startups get a 100% tax exemption on profits for 3 of their first 10 years.
- SectionThis is under Section 80-IAC.
Unicorns
- CountIndia now has 131 unicorns, startups valued at $1 billion or more, as of August 2026.
Good to Know
Support Mechanisms
Startup India Seed Fund Scheme
- PurposeSISFS provides early-stage capital for prototypes and market entry.
- AmountsIt gives up to Rs 20 lakh for a prototype and up to Rs 50 lakh for market entry.
Fund of Funds for Startups
- ManagerThe Fund of Funds is managed by SIDBI.
- StructureIt invests in SEBI-registered venture capital funds, not directly in startups.
Women-Led Startups
- ShareNearly half of SISFS’s approved funding has gone to women-led startups.
Other Perks
- PatentsDPIIT recognition brings faster patent examination.
- ComplianceIt offers self-certification for labour and environment laws.
Test Yourself
Great to Know
Ten Years On
A Decade of Growth
- MilestoneStartup India completed ten years on 16 January 2026.
- GrowthIt grew from a recognition scheme into a globally significant ecosystem.
Still Accelerating
- FY26FY26 added over 55,200 new DPIIT recognitions, the highest annual addition since 2016.
- PatternReal scale-up often arrives years after launch, not immediately.
Current Affairs
📰 Current Affairs
Strategic MoUs
- DateOn 8 August 2026, DPIIT signed five strategic MoUs to widen support for recognised startups.
- PartnersThese include Cashfree, Vultr India, Darwin Dynamics, Cars24 and the Council for Startup India.
- SourceIANS.
Startup Export Access
- NewsOn 6 August 2026, DGFT expanded its “Source from India” service to include DPIIT-recognised startups.
- BadgeEligible startups get a “Start-up Badge” so overseas buyers can find them.
- SourceIndia Shipping News.
PYQ
Exam Point of View
MCQ Questions
- PrelimsStartup India and its support mechanisms appear in UPSC and other competitive exams.
Written Answer Questions
- ThemeStartups, entrepreneurship and economic reform are recurring GS-III themes.
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