Question

Q. Consider the following statements with regards to Startup India Initiative:

Select the correct answer using the codes given below.

• A. 1 and 3 only
• B. 2 and 4 only
• C. 3 and 4 only
• D. 1 and 4 only

Answer 1

The correct option is D 1 and 4 only

Explanation:

• Statement 1 is correct: Startup India is a flagship initiative of the Government of India which aims at building a strong ecosystem for nurturing innovation and Startups in the country. This initiative was launched on 16th January 2016. The Government of India as part of the Startup India initiative has implemented the Fund of Funds for Startups Scheme and Startup India Seed Fund Scheme across all States/UTs to provide financial assistance and boost private investment in the Startups through Alternative Investment Funds (AIFs) and incubators. A corpus of Rs. 10,000 crore has been sanctioned, spread over 14th and 15th Finance Commission cycles. Small Industries Development Bank of India (SIDBI) is the nodal bank under this Scheme.
• Statement 2 is incorrect:The 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.Under the Startup India Seed Fund Scheme (SISFS), Rs. 945 crore has been sanctioned for a period of 4 years starting from 2021-22. The funds are released to Startups through approved Incubators.
• Statement 3 is incorrect: Department for Promotion of Industry and Internal Trade
  under the Ministry of Commerce and Industry recognised startups can get the benefits under the Startup India Initiative.
• Statement 4 is correct: the Startups can also avail other benefits under the Startup India Initiative such as Startup India Seed Fund Scheme (SISFS), Ease of Procurement, Income Tax Exemption for 3 years, Faster Exit for Startups, Support for Intellectual Property Protection and Self-Certification under Labour and Environmental laws.