Govt to set up credit guarantee fund for start-ups
07 Jan 2019
The government is planning to set up a Credit Guarantee Fund (CGF) for encouraging start-up companies with a view to providing funding facilities in the country. The scheme is yet to be made operational.
Giving this information in a written reply in the Lok Sabha today, minister of state for commerce and industry C R Chaudhary said various incentives are being provided to startups under Startup India initiative.
These include self-certification under six labour laws and three environmental laws, relaxations in public procurement norms, faster exit under the bankruptcy code, rebates on patent and trademark filing fees, support from facilitators and expedited examination of patent application.
Besides, start-ups are provided income tax exemption on investments received above fair market value, funding support under the Fund of Funds for Startups and guidance and facilitation support from Startup India Hub, he said.
The Department of Industrial Policy and Promotion hosted Startup India Global Venture Capital Summit 2018 on 7 December 2018 in Goa, which brought together global fund managers, limited partners, officials from the Government of India and innovative startups. The dialogue focused on the huge return-generating potential of India’s vast and diverse market monetised through cutting-edge technologies supported by investor-friendly regulations, the minister pointed out.
The Summit focused on showcasing the opportunities in India and highlighting sectors that provide a wide array of investible opportunities; increasing capital flow for Indian startups by showcasing high quality tech & non tech Indian startups to the global investor community; and fostering ease of doing business by identifying and discussing issues raised by investor community.
The event was attended by 30 Startups of which 27 were Indian Startups and 3 from the United States of America.
The Department of Industrial Policy and Promotion had accorded recognition to 8,993 startups during the year 2018, the minister added.