Entrepreneur -03rd Feb 2022

Implementation of Agriculture Export Policy

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794842&RegID=3&LID=1

FDI Inflow

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794840&RegID=3&LID=1

Export of Organic Foodgrains

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794841&RegID=3&LID=1

Micro Entrepreneurs in Rural Areas

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794837&RegID=3&LID=1

API Manufacturers

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794836&RegID=3&LID=1

SBI-NCF-IGNCA sign MoU for Development of Atmanirbhar Bharat Centre for Design at Red Fort, Delhi

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794907&RegID=3&LID=1

Previous Highest Ever yearly exports crossed in 10 months this year with figures touching USD 336 billion approximately

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1794817&RegID=3&LID=1

WITH REVIVAL OF ECONOMY, EMPLOYMENT INDICATORS BOUNCED BACK TO PRE-PANDEMIC LEVELS DURING LAST QUARTER OF 2020-21

WITH REVIVAL OF ECONOMY, EMPLOYMENT INDICATORS BOUNCED BACK TO PRE-PANDEMIC LEVELS DURING LAST QUARTER OF 2020-21


MONTHLY NET ADDITION IN EPF SUBSCRIPTIONS DURING 2021 SURPASS LEVELS OF CORRESPONDING MONTHS OF PRE-PANDEMIC YEAR 2019

DEMAND FOR MGNREGS WORK STABILIZES AFTER SECOND COVID SURGE BUT REMAINS HIGHER THAN PRE-PANDEMIC LEVEL

3 TIMES MORE ADDITIONAL WORKFORCE CREATED BETWEEN 2018-19 & 2019-20 AS COMPARED TO THE PREVIOUS PERIOD (2017-18 & 2018-19)

FEMALE WORKFORCE CONTRIBUTED TO 63 PERCENT OF ADDITIONAL WORKFORCE CREATED DURING 2018-19 AND 2019-20

The various indicators of employment have bounced back remarkably, after showing a decline during the first quarter of 2020-21, during the nationwide lockdown due to Covid pandemic. The Economic Survey 2021-22 which was tabled in the Parliament today by the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman has analysed trends in labour market and the impact of Covid-19 on employment.

Trends in Urban Labour Market:

The Survey states that with the revival of the economy, the Unemployment Rate (UR), the Labour Force Participation Rate (LFPR) and the Worker Population Rate (WPR) almost reached their pre-pandemic levels during the last quarter of 2020-21 as per Periodic Labour Force Survey Data.

The Economic Survey also analyses trends in urban employment using Employees Provident Funds Organization (EPFO) payroll data. An analysis of the EPFO data suggests significant acceleration in formalization of the job market, during 2021. In fact, in November, 2021, the monthly net additional EPF subscription peaked with 13.95 lakh new subscribers, the highest in any given month since 2017, the Survey states. This translates into growth of 109.21 percent in EPF subscription from November, 2020. The Economic Survey further states that the monthly net addition in EPF subscriptions during 2021 has not only been higher than the corresponding monthly values in 2020 but they have also surpassed the levels of the corresponding months during pre-pandemic year 2019. 

Trends in Rural Labour Market:

            Economic Survey 2021-22 analyses trends in Rural Labour Market with the help of latest data on demand for work under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

            The Survey observes that the MGNREGS employment peaked during the nationwide lockdown in 2020. However an interesting trend was observed for many migrant source states like West Bengal, Madhya Pradesh, Odisha, Bihar, in which the MGNREGS employment in most months of 2021 has been lower than the corresponding level in 2020. In contrast, the demand for MGNREGS employment has been higher for migrant recipient states like Punjab, Maharashtra, Karnataka and Tamil Nadu for most months in 2021 over 2020.

Giving further details, the Economic Survey points out that the demand for MGNREGS work has stabilized after the second Covid wave. It further states that the aggregate MGNREGS employment is still higher than pre-pandemic level. During the second Covid wave, demand for MGNREGS employment reached the maximum level of 4.59 crore persons in June 2021.

Long Term Trends in Employment using Annual PLFS Data:

            During PLFS 2019-20 (survey period from July 2019 to June 2020), employment at usual status continued to expand. Between 2018-19 and 2019-20, about 4.75 crore additional persons joined the workforce. This is about three times more than the employment created between 2017-18 and 2018-19. The rural sector contributed much more to this expansion relative to the urban sector (3.45 crore in rural sector and 1.30 crore in urban sector). Further, amongst the additional workers, 2.99 crore were females (63 percent). About 65 percent of the additional workers joined in 2019-20 were self employed. About 75 percent of the female workers who joined as self- employed were ‘unpaid family labour’. About 18 percent of the additional workers were Casual Labourer and 17 percent were ‘Regular Wage/Salaried Employee’. Further, the number of unemployed persons in 2019-20 has also decreased by 23 lakhs, constituted largely by males from the rural sector.

            With respect to industry wise employment in India, of the workers added in 2019-20, more than 71 percent were in agricultural sector. Among the new workers in the agriculture sector, females account for about 65 percent. Trade, hotel and restaurant sector accounted for a little over 22 percent of the new workers, in line with previous year’s trend where the sector represented more than 28 percent of the new workers. The share of manufacturing has declined from 5.65 percent of new workers added in 2018-19 to about 2.41 percent of new workers added in 2019-20, and so has that of construction from 26.26 percent to 7.36 percent.

Important Policy Measures to boost livelihoods:

The Economic Survey has highlighted several policy responses to boost livelihoods. These include Aatmanirbhar Bharat Rojgaar Yojana which was announced as a part of Aatmanirbhar 3.0 package to boost the economy, increase the employment generation in post Covid recovery phase and to incentivise creation of new employment alongwith the social security benefits and restoration of loss of employment during Covid-19 pandemic.

To boost employment and livelihood for returnee migrant workers, Garib Kalyan Rojgar Abhiyan was launched in June 2020. It focused on 25 target driven works to provide employment and create infrastructure in the rural areas of 116 districts 6 states with  resource envelope of Rs.50,000 Crore.

Similarly, allocation to MGNREGS in FY 2021-22 increased to Rs. 73,000 crore, from Rs. 61,500 crore in FY 2020-21. Allocation for FY 2021-22 has been enhanced to Rs.98000 crore so far. In FY 2021-22 over 8.70 crore individuals and 6.10 crore households were provided work so far.



The Survey also highlights several other social protection measures which have been stepped up like Pradhan Mantri Shramyogi Mandhan (PM-SYM) Yojana, National Pension Scheme for traders/shopkeepers/self employed persons, e-SHRAM portal to facilitate delivery of Social Security Schemes to workers and Labour Reforms for welfare of labour.

CENTRAL THEME OF ECONOMIC SURVEY 2021-22 IS THE “AGILE APPROACH” (Press Release 31 Jan 2022)

CENTRAL THEME OF ECONOMIC SURVEY 2021-22 IS THE “AGILE APPROACH”


PREFACE TAKES A BIRD’S EYE VIEW OF EVOLUTION OF ECONOMIC SURVEYS SINCE INDEPENDENCE

NEW CHAPTER DEMONSTRATES USE OF SATELLITE & GEO-SPATIAL IMAGES TO GAUGE VARIOUS ECONOMIC PHENOMENON

ECONOMIC SURVEY REVERTS TO A SINGLE VOLUME PLUS A SEPARATE VOLUME FOR STATISTICAL APPENDIX

The central theme of this year’s Economic Survey is the “Agile approach”, implemented through India’s economic response to the COVID-19 Pandemic shock. Informing further, the preface of Economic Survey states that the “Agile approach” is based on feed-back loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers and so on.

The Economic Survey 2021-22 tabled by the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in the Parliament today, argues that some form of feedback loop based policy-making was always possible, but the “Agile framework: is particularly relevant today because of the explosion of real-time data that allows for constant monitoring. Such information includes GST collections, digital payments, satellite photographs, electricity production, cargo movements, internal/external trade, infrastructure roll-out, delivery of various schemes, mobility indicators, to name just a few. Some of them are available from public platforms but many innovative forms of data are now being generated by the private sector. Short-term policy responses, therefore, the Survey states, can be tailored to an evolving situation rather than what a model may have predicted.

 Planning matters in this framework but mostly for scenario-analysis, identifying vulnerable sections, and understanding policy options rather than as a deterministic prediction of the flow of events. The Survey notes that the previous Economic Survey did briefly discuss this approach but it is a central theme for this Survey.

Another theme highlighted in this Economic Survey relates to the art and science of policy-making under conditions of extreme uncertainty. It is not just about the immediate disruptions and uncertainty caused by repeated waves of the COVID-19 pandemic, but also the longer-term uncertainty about the post-COVID world due to accelerated shifts in technology, consumer behaviour, supply-chains, geo-politics, climate change and a host of other factors. Not only are these individual factors difficult to forecast, the impact of their interactions are fundamentally unpredictable. The same recognition of uncertainty informs the longer-term supply-side strategy: the combination of policies that encourage economic flexibility through innovation, entrepreneurship and risk-taking on one hand, and simultaneously invests in resilient infrastructure, social safety-nets and macro-economic buffers on the other.

The Survey states that various policies of the Government of India are all about protection from or taking advantage of an uncertain future.  It expects its readers to recognise the links between seemingly disparate policies ranging from deregulation, process simplification, privatization, foreign exchange reserves accumulation, inflation-targeting, housing-for-all, green technology, the Insolvency and Bankruptcy Code, health insurance for the poor, financial inclusion, infrastructure spending, direct benefit transfers and so on.

The Preface also takes a bird’s eye view of the “great deal of evolution” of the Economic Surveys presented since the first Survey in 1950-51. The Survey charted out many permutations and combinations in terms of language, statistics, formats, topics, length, scope and prescriptions projected through the Economic Surveys. Interestingly, for more than a decade after 1st Survey, the Survey document was clubbed with the Union Budget.

Making a shift from the two-volume format of recent years to a single volume plus a separate volume for statistical tables, the Survey argues for smaller and terse document. Over the years, increasing voluminous state of the document has made it unwieldy with last year’s Economic Survey 2020-21 with almost 900 pages. Therefore, this year’s Survey reverts to a single volume plus a separate volume for the Statistical Appendix. The idea of having a separate volume for the statistical appendix is to give it a distinct identity as the one-stop source of authentic data. The Economic Survey hopes that it will evolve in the next few years to include new kinds of socio-economic data in line with the emphasis on a feedback loop approach.

Along with the sectoral chapters, this year’s Survey adds a new chapter that demonstrates the use of satellite and geo-spatial images to gauge various economic phenomenon – urbanisation, infrastructure, environmental impact, farming practices and so on.

What are conditions for Food License ?

A food business operator must comply following conditions:

1. Form C ( License copy) must be displayed in a conspicuous location on the premises at all times.

2. Allowing Licensing Authorities to access the premises as needed.

3. Notify authorities of any changes or alterations to the license’s activity or content.

4. At least one technical expert should be hired to oversee the manufacturing process.

The person in charge of the production process must have at least a bachelor’s degree in science with chemistry, biochemistry, food and nutrition, or microbiology, or a bachelor’s degree or diploma in food technology, dairy technology, dairy microbiology, dairy chemistry, dairy engineering, oil technology, veterinary science, hotel management, and catering technology, or any other degree or diploma in any other discipline related to the business’s specific requirements from a recognized

5. Reporting : Submit a periodic yearly report (from April 1 to March 31) by May 31 of each year. Half-yearly returns for the collection, handling, and production of milk and milk products are also required (1st April to 31st September before 30th November and 1st October to 31st March).

6. Ensure that the unit does not create any products other than those listed in the license/registration.

7. Maintain factory sanitary and hygienic requirements, as well as worker hygiene, as stipulated in Schedule – 4 for the food industry category.

8. Separately keep track of production, raw material usage, and sales on a daily basis.

9.Ensure that the raw material source and standards are of the highest possible quality.

10. No Food Business Operator shall manufacture, store, expose for sale, or authorize the sale of any article of food in any premises that is not adequately isolated from any privy, urinal, sullage, drain, or place of storage of foul and waste matter to the satisfaction of the licensing authority.

11. Ensure Clean-In-Place systems (where applicable) for frequent machine and equipment cleaning.

12. Ensure that relevant chemical and/or microbiological contaminants in food products are tested as frequently as required in accordance with these regulations, based on historical data and risk assessment, to ensure the production and delivery of safe food, at least once every six months, through own or NABL accredited/FSSA notified labs.

13. Ensure that the proper temperature is maintained as much as feasible throughout the supply chain, including chilling, shipping, and storage, from the point of procurement or sourcing until it reaches the end customer.

14 Owners of hotels, restaurants, and other food stalls that sell or expose for sale savouries, sweets, or other food items must post a notice board with separate lists of the items cooked in ghee, edible oil, vanaspati, or other fats for the knowledge of potential buyers.

15. A notice board describing the nature of the items being exposed for sale must be displayed by a food business operator selling cooked or prepared meals.

16. Every manufacturer [including ghani operator] or wholesale dealer in butter, ghee, vanaspati, edible oils, Solvent extracted oil, de-oiled meal, edible flour, and any other fats shall keep a record of the quantity manufactured, received, or sold, the nature of the oil seed used, the quantity of de-oiled meal and edible flour used, and the destination of each consignment of the substances sent out from his factory or place of business.

Steps taken by Government to improve flow of credit to MSME sector (Press release dated 21st Dec 2021)

The Reserve Bank of India (RBI) vide circular dated 05.02.2021 and 05.05.2021, has allowed Scheduled Commercial Banks (SCBs) to deduct the amount equivalent to credit disbursed to New Micro Small and Medium Enterprises (MSMEs), who have not availed any credit facilities from banking_system as on 01.01.2021, from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR). This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha.

The Minister stated that this exemption is available upto Rs 25 lakh per borrower, disbursed upto fortnight ending 31.12.2021, for a period of one year from date of origination of loan or the tenure of the loan, whichever is earlier.

The Minister listed out the measures taken by the Government for improving the flow of credit to MSME sector:

  1. The Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Aatma Nirbhar Bharat Package with the objective to help MSMEs and business enterprises to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis, by providing Lending Institutions 100 per cent guarantee against any losses suffered by them due to non-repayment by borrowers. As informed by National Credit Guarantee Trustee Company Limited, as on 10,12.2021, loans amounting to Rs. 3.09 lakh crore have been sanctioned under the Scheme.
  2. The psbloansin59minutes Portal was launched on 2nd November 2018 to facilitate in-principle approval of loans of up to Rs 1 crore (enhanced subsequently to Rs. 5 crore) to MSMEs without human intervention. As informed by SIDBI as on 30.11.2021, loans amounting to 79,285 crore were sanctioned on the portal.
  3. RBI operationalized TReDS in 2017 to solve the problem of delayed payments to MSMEs. TReDS is an electronic platform where receivables of MSMEs drawn against buyers (large corporates, PSUs, Government Departments, etc.) are financed through multiple financiers at competitive rates through an auction mechanism. As on 03.12.2021, 26.64 lakh invoices amounting to Rs 56,694.14 crore have been discounted since inception by the three entities on TReDS platform.
  4. Factoring transactions taking place through TReDS are eligible for classification under Priority Sector Lending (PSL). Further, loans sanctioned by banks to NBFC­ MFls and other MFls (Societies, trusts, etc.) which are members of RBI recognized SRO for the sector for on-lending to MSE sector, loans to registered NBFCs (other than MFls) for on-lending to MSMEs and bank finance to start-ups up to 50 crore also form a part of PSL. RBI has also permitted co-lending by Banks and NBFCs to Priority sector.
  5. Subordinate Debt scheme for Stressed MSMEs was approved on 01.06.2020. Under the scheme, banks provide promoters of stressed MSMEs with subordinate debt up to 15% of promoter’s stake or Rs. 75 lakh, whichever is lower to be infused as equity/quasi equity in the business.
  6. Pradhan Mantri Mudra Yojana (PMMY) scheme was launched on 08.04.2015 to provide access to institutional finance to unfunded Micro/Small business units with collateral free loans up to Rs 10 lakh for manufacturing, processing, trading, services and activities allied to agriculture and to help in creating income generating activities and employment.
  7. RBI had permitted one-time restructuring for MSME accounts vide circular dated 01.01.2019, 11.02.2020 and 06.08.2020. In view of the need to support the viable MSME entities on account of the fallout of COVID-19, it was decided to extend the facility for restructuring existing loans to MSMEs up to 50 crore classified as ‘standard’ without a downgrade in the asset classification subject to the conditions issued vide circular, dated 05.05.2021 and 04.06. 2021 on ‘Resolution Framework 2.0.
  8. For better transmission of monetary policy, RBI has advised banks to link all new floating rate loans to external benchmark for MSEs from 01.10.2019 and Medium enterprises from 01.04.2020.
  9. The Regulatory Retail Portfolio threshold to a single counterparty was increased from 5 crore to 7.5 crore enabling Banks to assign a lower risk weight of 75% to such exposure to MSME entities.

युवा उद्यमी हेनरी सिंगुरा ने मशरूम की खेती को एक सफल व्यावसायिक उद्यम के रूप में विकसित किया (Ministry of Micro,Small & Medium Enterprises Press Release dated 10th Dec 2021)

मिजोरम के श्री हेनरी सिंगुरा ने मशरूम की खेती को एक सफल व्यावसायिक उद्यम के रूप में विकसित किया है और अपने क्षेत्र के युवाओं को रोजगार के नए अवसर प्रदान किए हैं। हेनरी हमेशा से ही अपने आस – पास के लोगों के लिए कुछ करने की इच्छा रखते थे इसलिए उन्होंने वर्ष 2019 में फूड माइक्रो लैब की स्थापना की। सूक्ष्म, लघु एवं मध्यम उद्यम मंत्रालय की प्रधानमंत्री रोजगार सृजन कार्यक्रम (पीएमईजीपी) योजना ने उनके उद्यम को सफल बनाने में प्रमुख भूमिका निभाई है। हेनरी ने बताया है कि मिजोरम में मशरूम की खेती आमदनी का एक मुख्य स्रोत है। एक स्टार्टअप होने की वजह से धन का प्रबंधन करना हमारे सामने आने वाली प्रमुख समस्याओं में से एक थी। पीएमईजीपी योजना के तहत हमें ऋण और 35 फीसदी सब्सिडी मिली। इससे हमारे स्टार्टअप को काफी सहायता मिली है।

Choose road to success with Ministry of MSME like Henry did.#MSME #SCSTHUB #KVIC #NSIC #NSSH@NSICLTD @minmsme @kvicindia @IndianCoir pic.twitter.com/kcntLYmnVl— Ministry of MSME (@minmsme) December 10, 2021


हेनरी आज एक सफल उद्यमी के रूप में कार्य कर रहे हैं और अन्य लोगों को भी मशरूम की खेती करने का प्रशिक्षण दे रहे हैं। हेनरी की शुरुआती चुनौती थी अपने स्टार्टअप के लिए धन की व्यवस्था करना और इसके लिए उन्हें #पीएमईजीपी योजना के तहत #मिनिस्ट्रीऑफ़एमएसएमई का सहयोग मिला।

Revival of Exports (Press release dated 10th Dec 2021)

There are signs of revival of exports of the country. India’s overall exports (merchandise and services) has increased by 39.74% in 2021-22 (April-October) as compared to the corresponding period of previous year.

In order to boost India’s exports, the Government has taken several measures which include:

  1. The mid-term review (2017) of the Foreign Trade Policy (2015-20) was carried out and corrective measures were undertaken.
  2. Foreign Trade Policy (2015-20) extended by one year i.e. upto 31-3-2022 due to the COVID-19 pandemic situation.
  3. Assistance provided through several schemes to promote exports, namely, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme. 
  4. A Central Sector Scheme –‘Transport and Marketing Assistance for Specified Agriculture Products’–for providing assistance for the international component of freight to mitigate the freight disadvantage for the export of agriculture products.
  5. Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and Rebate of State and Central Levies and Taxes (RoSCTL) Scheme have been launched with effect from 01.01.2021.
  6. Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase FTA utilization by exporters.
  7. Promoting and diversifying services exports by pursuing specific action plans for the 12 Champion Services Sectors.
  8. Promoting districts as export hubs by identifying products with export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district.
  9. Active role of Indian missions abroad towards promoting India’s trade, tourism, technology and investment goals has been enhanced.
  10. Package announced in light of the Covidpandemic to support domestic industry through various banking and financial sector relief measures, especially for MSMEs, which constitute a major share in exports.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Rajya Sabha today.

Startups (Ministry of Commerce & Industry Press Release dated 08th Dec 2021)

To promote startups across all the State/UTs, Government of India has launched Startup India initiative in 2016. This initiative aims at building a strong ecosystem for nurturing innovation and Startups in the country. In order to meet the objectives of the initiative, Government has launched various programmes to promote Startups across the country are as below:

  1. Startup India Action Plan: An Action Plan for Startup India was unveiled on 16th January 2016. The Action Plan comprises of 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”. The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
  2. Startup India: The Way Ahead: Startup India: The Way Ahead at 5 years celebration of Startup India was unveiled on 16th January 2021 which includes actionable plans for promotion of ease of doing business for startups, greater role of technology in executing various reforms, building capacities of stakeholders and enabling a digital Aatmanirbhar Bharat.
  3. Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. The capital required at this stage often presents a make or break situation for startups with good business ideas. The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22. It will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years.
  4. Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating raising of domestic capital, reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
  5. Ease of Procurement: To enable ease of procurement, Central Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all Startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) Startup Runway; a dedicated corner for startups to sell products & services directly to the Government.
  6. Self-Certification under Labour and Environmental laws: Startups are allowed to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporatio
  7. .Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognised startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
  8. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act: A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act.
  9. Startup India Hub: The Government launched a Startup India Online Hub on 19th June 2017 which is one of its kind online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other. The Online Hub hosts Startups, Investors, Funds, Mentors, Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.
  10. National Startup Awards: National Startup Awards is an initiative to recognize and reward outstanding startups and ecosystem enablers that are building innovative products or solutions and scalable enterprises, with high potential of employment generation or wealth creation, demonstrating measurable social impact.
  11. International Access to Indian Startups: One of the key objectives under the Startup India initiative is to help connect Indian startup ecosystem to global startup ecosystems through various engagement models. This has been done though international Government to Government partnerships, participation in international forums and hosting of global events. Startup India has launched bridges with over 11 countries (Brazil, Sweden, Russia, Portugal, UK, Finland, Netherlands, Singapore, Israel, Japan, South Korea) that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration.
  12. Support for Intellectual Property Protection: Startups are eligible for fast-tracked patent application examination and disposal. The Government launched Start-ups Intellectual Property Protection (SIPP) which facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees. Facilitators under this Scheme are responsible for providing general advisory on diff­erent IPRs, and information on protecting and promoting IPRs in other countries. The Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
  13. Faster Exit for Startups: Ministry of Corporate A­ffairs has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.

The Government of India as part of Startup India initiative has implemented Fund of Funds for Startups Scheme and Startup India Seed Fund Scheme to provide financial assistance through Alternative Investment Funds (AIFs) and incubators.

Fund of Funds for Startups (FFS) Scheme: A corpus of Rs. 10,000 crore has been sanctioned under the FFS Scheme, spread over 14th and 15th Finance Commission cycles. FFS Scheme does not directly provide financial assistance to startups, instead supports SEBI-registered Alternative Investment Funds (AIFs), who in turn invest money in growing Indian startups through equity and equity-linked instruments. AIFs supported under FFS are required to invest at least two times of the amount committed under FFS in startups

Startup India Seed Fund Scheme (SISFS): Rs. 945 crore has been sanctioned under the SISF Scheme for period of 4 years starting from 2021-22. 40% of total approved commitment is released as part of first installment to a selected incubator. Subsequent installments are released based on submission of proof of achievement of milestones.

Promoting women entrepreneurship has been a key national agenda for the Government. Out of the 58,000+ DPIIT recognised startups, 46% of them have at-least one-woman director. Further, under Startup India Seed Fund Scheme (SISFS), as on 06th December, 2021, 55 women-led startups have been sanctioned financial assistance.

Furthermore, under Fund of Funds for Startups (FFS) Scheme, as on 6th December, 2021, for 83 women led Startups, Rs. 1046.05 crore has been invested by the AIFs supported under the FFS Scheme.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri SomParkash, in a written reply in the Lok Sabha today.

Single Window System (Ministry of Commerce & Industry Press Release 08th Dec 2021)

While presenting Budget 2020-21, Finance Minister announced plans to set up an Investment Clearance Cell (ICC) that will provide “end to end” facilitation and support to investors, including pre-investment advisory, provide information related to land banks and facilitate clearances at Centre and State level. The cell was proposed to operate through an online digital portal.

Subsequently, as per the mandate, DPIIT along with Invest India initiated the process of developing the portal as a National Single Window System (NSWS). Envisioned as a one-stop for taking all the regulatory approvals and services in the country, NSWS [www.nsws.gov.in] was soft-launched on 22nd September, 2021 by Commerce & Industry Minister.

This national portal integrates the existing clearance systems of various Ministries/ Departments of Government of India and State Governments without disruption to their existing IT portals.

Currently, approvals of 19 Ministries/ Departments and 10 States Single Window Systems have been on-boarded on the NSWS Portal. List of the onboarded Ministries/ Departments and States is as below:

Ministries/ Departments integrated with NSWS:

  1. M/o Corporate Affairs
  2. M/o Environment, Forest & Climate Change
  3. M/o Labour& Employment
  4. D/o Food & Public Distribution
  5. D/o Consumer Affairs
  6. M/o Health & Family Welfare (FSSAI & CDSCO)
  7. D/o Promotion of Industry and Internal Trade
  8. D/o Commerce
  9. D/o Telecommunications
  10. M/o Information & Broadcasting
  11. M/o Power
  12. M/o Railways
  13. D/o Biotechnology
  14. D/o Revenue
  15. M/o Civil Aviation
  16. M/o Agriculture & Farmers Welfare
  17. D/o Fisheries
  18. M/o Textiles
  19. M/o Petroleum and Natural Gas

States integrated with NSWS:

  1. Goa
  2. Gujarat
  3. Himachal Pradesh
  4. Odisha
  5. Uttar Pradesh
  6. Uttarakhand
  7. Punjab
  8. Karnataka
  9. Andhra Pradesh
  10. Telangana

The Know Your Approvals (KYA) Module is an information wizard which guides investors to identify an indicative list of requisite pre-operations approvals/ licenses applicable. This is facilitated by answering a series of questions which gets populated basis the information provided by the investor in the previous question. Post submission of the KYA questionnaire, the investors are able to view an indicative list of licenses pertaining to the Central/ State Governments that are applicable to them. The investors are also guided on these questions and their applicability/ purpose by an Information Toolbox. This is to enhance the ease of user experience and eliminate information asymmetry on this module.

The KYA service is live on NSWS with 544 approvals across concerned 32 Central Ministries/ Departments and 2715 approvals across 14 States. Total 3259 approvals are listed.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri SomParkash, in a written reply in the Lok Sabha today.

Collaboration with Foreign Companies under Atmanirbhar Bharat (Ministry of Commerce & Industry Press Release dated 08th Dec 2021)

The Government announced Atmanirbhar Bharat Abhiyan – a special economic package of Rs20  lakh crore on 12.05.2020 with the aim of making the country self-reliant and to focus on local manufacturing. It focuses on preparing the country for tough competition in global supply chains, enhance the ease of doing business, empower MSMEs, attract investments including FDI and strengthen the policies for Make in India. The package comprises of several long-term Scheme/Programmes intended to make the country self-reliant. These Schemes/Programmes are being implemented by various Ministries/Department.

Government has taken a number of effective measures to make the country self-reliant. Some the key measures are: special economic and comprehensive package of Rs. 29.87 lakh crore, 34.5 percent increase in capital expenditure in Union Budget 2021-22, and relief Package of Rs. 6.29 lakh crore in June, 2021, Production-Linked Incentive (PLI) Scheme with an outlay of Rs. 1.97 Lakh Crore for 13 key sectors, Rs. 3 Lakh Crore Emergency Working Capital Facility for Businesses, including MSMEs, Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs , Rs. 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers, launch of the PM GatiShaki – a National Master Plan for multi-modal connectivity, reducing compliance burden on citizen and business to simplify, decriminalize & remove redundant laws, a liberal and transparent policy for attracting Foreign Direct Investment (FDI), launch of the National Single Window System (NSWS) as a one-stop for taking all the regulatory approvals and services in the country, building a strong eco-system for nurturing innovation and Startups in the country with the help of schemes such as Fund of Funds for Startups Scheme (FFS), and Startup India Seed Fund Scheme (SISFS) schemes, achieving integration of India Industrial National Land Bank (GIS Land Bank) in states and Make in India for world.

No Global tenders are invited for Government tenders of uptoRs. 200 crore.  Beyond Rs. 200 crore, work by various central Ministries/Departments are undertaken based on merits of the proposal submitted by companies.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri SomParkash, in a written reply in the Lok Sabha today.