He added that the government has launched several initiatives to bolster startups across a wide array of sectors, with a specific focus on fostering growth in the financial technology (fintech) domain.
The minister added that DPIIT has recognised 98,119 entities as startups since the launch of Startup India in 2016.
The government has notified a set of conditions for the startups to be recognised by the DPIIT, such as date of incorporation, revenue and profit benchmarks and number of employees. Recognised startups get certain fiscal and non-fiscal incentives announced by the government from time to time.
“To promote our startup ecosystem, especially in the fintech sector, the International Financial Services Centres Authority (IFSCA) has taken various measures,” Singh stated.
Among these measures is the introduction of a distinct ‘Fin-Tech Entity Framework’, designed to cater to the needs of fintechs and techfins.
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Singh also highlighted that the IFSCA has introduced an incentive scheme tailored to fintechs and startups. This comprehensive scheme encompasses various grants, including startup grants, sandbox grants, proof-of-concept (PoC) grants, green fintech grants, listing grants, and accelerator grants.To enhance investment inflows within the fintech sector, the government has taken several strategic steps, including the implementation of the Pradhan Mantri Jan Dhan Yojana (PMJDY).
This initiative aims to amplify financial inclusion in India by streamlining the enrolment of beneficiaries in new bank accounts, facilitating direct benefit transfers, and granting access to a multitude of financial services applications. This, in turn, has enabled fintech startups to develop technological solutions that effectively cater to India’s substantial consumer base, Singh noted.
Furthermore, Singh emphasised the significance of the synergy between Jan Dhan Yojana, Aadhar, and Mobile (collectively known as the JAM trinity), along with the Unified Payments Interface. This amalgamation has played a pivotal role in promoting technical inclusivity, transparency, integrity, and the timely delivery of financial benefits and services to the public, he said.
In addition, the government of India also launched the Startup India initiative on January 16, 2016. The initiative aims to build a robust ecosystem to nurture innovation and startups, and encourage private investments in the country’s startup ecosystem.