The Ministry of Commerce and Industry will set up an expert advisory committee for the implementation and monitoring of the Rs 1,000-crore Startup India Seed Fund scheme. This information was given in a notification. The plan was announced earlier this month by Prime Minister Narendra Modi to help startups and help new entrepreneurs move forward.
The Department of Industry and Internal Trade Promotion (DPIIT), which comes under the Ministry of Commerce and Industry, said that the committee will select startups to allocate seed funds, monitor progress and take all necessary measures to ensure that the funds are properly utilized. Be and the purpose of the plan is fulfilled.
The committee of experts will keep an eye
The members of this committee will include DPIIT, Department of Biotechnology, Department of Science and Technology, Ministry of Electronics and Information Technology, representatives of the Indian Council of Agricultural Research and NITI Aayog and at least three experts nominated by the DPIIT Secretary. According to this scheme, financial assistance of Rs 945 crore will be given to startups through selected incubators across India during 2021 to 2025.
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These startups will benefit
According to DPIIT, startups must have DPIIT accreditation to take advantage of this scheme. Apart from this, the formation of the application should not exceed two years. Also, technology should be used in its core product or services.
Why increased vigor
The government has taken several steps in the last five years to promote startups. Due to this, India has come in the top three countries. However, the help received from the government and industry was not utilized properly by many startups and they shut down prematurely. Ratan Tata, a veteran industrialist and a startup who has given all kinds of help, has expressed resentment about it. Experts say that in view of this, the government has decided to monitor the startup as well as their work with capital.
There will be 10 times increase in five years
According to a report by Nasscom, the domestic startup environment is set to grow 10-fold by 2025. Nasscom expects the value of the startup to increase to $ 350 to $ 390 billion by 2025. In India, it takes an average of seven years for a startup to become a unicorn, the duration is 5.5 years in China and 6.5 years in the US.
21 unicorn startups in the country
There are 21 domestic unicorn startups in the country whose market valuation is more than one billion dollars (7.5 thousand crores). According to a report by Hurun, there are 40 more such companies but their founders are foreign nationals of Indian origin. However, the number of unicorns in India is less than 10% compared to China. There are 227 unicorn startups in China. While China has started only 16 out of the country businesses, the number is 40 in India. Unicorn, established worldwide by Indians, has a total market valuation of $ 99.6 billion, with fintech startup Robinhood having a capitalization of $ 8.5 billion. 66% of the 61 unicorns of Indians are outside the country.