Startups created 4.7 lakh jobs till December 2020

Startups created 4.7 lakh jobs till December 2020

The rise in employment numbers was attributed to increase in active recognition of startups

Represenative image. Credit: iStockPhoto

Employment reported by startups increased from 1.52 lakh in January-December, 2019 to 1.75 lakh in January-December, 2020 due to an increase in the number of active recognition of startups from 11,694 to 14,784 in the same period, according to Economic Survey 2021 tabled by Finance Minister Nirmala Sitharaman on Friday.

As of December 23, 2020, the Government of India has recognised a total of 41,061 startups and 4,70,000 jobs have been reported by more than 39,000 startups. The Government has taken several initiatives to promote the startups, says the survey.

To facilitate the growth of startups, GoI had announced the “Startup India, Stand-up India” initiative. The action plan is based on the three pillars “Simplification and Handholding”, “Funding Support and Incentives”, and “Industry-Academia Partnership and Incubation”, it says.

The survey also names several initiatives that the government has taken to promote startups in the country. These include the Startups Intellectual Property Protection (SIPP) scheme, which enables a startup to seek assistance from any empanelled facilitator to file and prosecute their application.

"The facilitator can claim payment for the services given to the startup from the Office of the Controller General of Patents, Designs and Trademarks (O/o CGPDTM) on submission of certificate in the prescribed format," the survey mentions.

As of June-2020, 510 patent facilitators and 392 trademark facilitators have been empanelled to provide free-of-charge services to startups

Another initiative that the survey talks about is the Fund of Funds for Startups (FFS) with a total corpus of Rs 10,000 crore, which was established with contributions spread over the 14th and 15th Finance Commission cycle based on the progress of implementation.

"Further to boost innovation in the sector and encourage the youths to secure their rights on technology and the product developed by them, startups have been provided 80% rebate in patent filing fees and 50% rebate on trademark filing fees. Additionally, the facility of expedited examination of patent applications to reduce the time taken in granting patents is also available to the startups," it says.

As of June-2020, 3,618 patent applications were granted 80% rebate on the filing fee and 6,832 trademark applications were granted a 50% rebate on the filing fee.

StartupYatra (an initiative that travels to Tier 2 and Tier 3 cities of India to search for entrepreneurial talent by conducting day-long bootcamps) has been conducted across 23 states in 207 districts impacting 78,346 aspiring entrepreneurs. A total of 1,424 incubation offers have been given to the startups as a result of this initiative, the survey adds.