Indian Government Recognizes 114,902 Startups, Provides Support and Incentives

Startup Ecosystem Flourishes with 114,902 Recognized Entities

The Indian government's commitment to fostering innovation and entrepreneurship through the Startup India Action Plan continues to yield positive results. As of October 31st, 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized a staggering 114,902 entities as startups.

These startups are eligible to apply for the various benefits offered by the Startup India Action Plan, including income tax exemption for three years, access to funding resources, and simplified regulatory processes.

Startup India Action Plan: A Comprehensive Support System

Launched in January 2016, the Startup India Action Plan is a comprehensive initiative designed to promote a vibrant and sustainable startup ecosystem in India. The plan encompasses 19 key areas, including:

• Simplification and Handholding: Streamlined procedures for obtaining licenses and approvals, along with mentorship and guidance programs for entrepreneurs.

• Funding Support and Incentives: Access to venture capital, angel investors, and government funding schemes, along with tax exemptions and other financial incentives.

• Industry-Academia Partnership and Incubation: Fostering collaboration between universities and research institutions with startups to encourage innovation and technology transfer.

Gems and Jewellery Exports Face Challenges, Remain Significant Contributor

While the Indian startup ecosystem thrives, the gems and jewellery export industry faces challenges due to subdued demand in key markets like the US and China, along with competitive prices for raw materials in other countries.

Despite this, the industry remains a significant contributor to the Indian economy, employing around 5 million skilled and semi-skilled workers and accounting for 8.45% of total merchandise exports in 2022-23.

Import Regulations Aim to Protect Consumers and Promote Domestic Production

To ensure that imported goods meet quality standards, the Indian government utilizes a risk-based framework to identify and prevent the entry of non-compliant products at the borders. Additionally, a task force has been established to enforce national standards and protect consumers from substandard goods.

Import Trends Indicate Opportunities for Domestic Manufacturers

Recent trade data reveals a decline in imports of products like TVs and certain types of tyres, indicating opportunities for domestic manufacturers to capture a larger share of the market.

Initiatives such as promoting investments in domestic production, timely utilization of trade remedies, and enforcement of rules of origin are all contributing to this shift.

Challenges in Gem and Jewellery Exports

Patel highlighted subdued demand in major export markets like the US, Hong Kong, the Middle East, and China, coupled with competitive raw material availability, as key challenges faced by the gem and jewellery export sector.

She revealed that the export of gem and jewellery in 2022-23 stood at USD 38.11 billion, witnessing a decline of 2.95% compared to the preceding year's export of USD 39.27 billion.

Despite the challenges, this sector constitutes 8.45% of total merchandise exports and employs approximately 5 million skilled and semi-skilled workers.

Ensuring Quality Imports

In a separate statement, Minister Anupriya Patel emphasized the customs authority's commitment to preventing the entry of substandard goods into the country. She highlighted the adoption of a risk-based framework and the constitution of a task force within CBIC to enforce national standards, ensuring the import of quality products.

Import Monitoring and Trends

Patel provided insights into the decline in imports, citing specific examples. Import data for various categories, such as television sets and tyres, showcased a considerable reduction during April-October in the current fiscal year compared to the previous year.

Imports of specific TV sets and radial tyres experienced a significant downturn, indicating a proactive approach toward monitoring and managing imports.

Measures for Industry Enhancement

The Department of Commerce remains proactive in addressing import-related concerns. Sensitization efforts span multiple areas, including tackling supply limitations, exploring domestic production capacities, utilizing trade remedy options, quality control, enforcing rules of origin, tariff corrections, and vigilant import monitoring.

Conclusion:

The Indian government's commitment to supporting startups and fostering innovation is evident in the recognition of over 114,902 entities and the various benefits offered through the Startup India Action Plan.

This, along with ongoing efforts to improve quality standards and promote domestic production, paints a promising picture for the future of the Indian economy.