SUMMARY
Startups recognised by the DPIIT have created more than 9 lakh direct jobs: Economic Survey
The Survey, tabled by FM Nirmala Sitharaman, said that startups have moved past consumer products and services to much larger value-added services
It also said that the domestic filing of patents rose 46% during the 2016-21 period, “signalling India’s transition towards a knowledge-based economy”
About 48% of startups in the country are based out of Tier-II, III cities, the Economic Survey 2022-23, tabled in the Parliament by Finance Minister Nirmala Sitharaman a day ahead of the presentation of the Union Budget 2023-24, said.
“About 48 per cent of our startups are from Tier II & III cities, a testimony of our grassroots’ tremendous potential,” the Survey said.
The Economic Survey is a flagship document of the Ministry of Finance which discusses the state of the economy, achievements, and challenges, among others. This year’s Economic Survey was prepared under the leadership of Chief Economic Advisor V Anantha Nageswaran.
The Survey said that the startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) have created more than 9 lakh direct jobs. Further, the average number of jobs created by startups in the year increased by 64% in 2022.
It must be noted that the DPIIT has recognised 84,012 startups as of 2022-end.
“Startups have moved past the traditional territory of consumer products and services to much larger value-added services such as satellites,” the Survey noted, signalling the maturity of India’s startup ecosystem.
It also highlighted the initiatives taken by the government over the past year to promote India’s startup ecosystem. For instance, the government has allowed eligible startups to avail a 100% deduction of the profit and gains of eligible startups for three consecutive years out of ten years via the Income Tax Act, 1961.
Starting with the Startup India Initiative launched in 2016, the Economic Survey 2022-23 noted that schemes such as the National Initiative for Developing and Harnessing Innovations (NIDHI) and the Atal Innovation Mission (AIM) have helped Indian startups and continue to do so.
It also mentioned the funding initiatives by the government to support startups in the country. The Fund of Funds for Startups (FFS) and the Credit Guarantee Scheme for Startups (CGSS) were two of the schemes mentioned in the Survey which support seed funding and successive credit needs, respectively.
Besides, it also said that the domestic filing of patents rose 46% during the 2016-21 period, “signalling India’s transition towards a knowledge-based economy”.
Further, the Support for International Patent Protection in E&IT (SIP-EIT) Scheme launched by the government has also encouraged international patent filing by Indian MSMEs and startups. The growth in domestic patent filing led to India making it in the top 40 of the Global Innovation Index (GII) for the first time since the index’s inception in 2007, it added.
