Govt Says Reforms Shift India to Trust-Based Business Framework
The Centre has argued that a series of reforms over recent years has moved India's business ecosystem away from a system dominated by approvals toward one built on trust. According to the government, these changes have given fresh momentum to startups, investment, employment and digital services.
According to DPIIT, the Startup India initiative has so far recognised more than 2.5 lakh startups across over 770 districts and 56 sectors. These firms have together created more than 25.42 lakh direct jobs.
The Ministry of Commerce and Industry said about 52 per cent of recognised startups are from non-metro cities, indicating that entrepreneurship is no longer limited to big cities alone. It added that 48 per cent of startups have at least one woman director, highlighting the growing role of women in entrepreneurship.
Government-supported funding has expanded too. Through the Startup India Seed Fund Scheme, over Rs 775 crore has been sanctioned for more than 4,100 startups via 244 incubators spread across 32 states and Union Territories.
Under the Fund of Funds for Startups, implemented through SIDBI, Rs 12,600 crore-plus has been committed to Alternative Investment Funds. Those funds have invested over Rs 28,000 crore in around 1,500 startups.
The Credit Guarantee Scheme for Startups has supported more than 500 loan cases totalling over Rs 1,662 crore, and these startups have created jobs for more than 41,000 people.
The government has increased the guarantee cover for startups from Rs 10 crore to Rs 20 crore, and has lowered annual fees for priority sectors to address their financial needs.
DPIIT has highlighted several other reforms, including the abolition of angel tax, simplified capital gains tax provisions for listed and unlisted shares, and permission for insurance companies and pension funds to invest in AIFs. More than 4,400 startups have also received eligibility certificates under Section 80-IAC of the Income Tax Act.
Startup participation in government purchases has surged as well. Registrations on the Government e-Marketplace rose from fewer than 8,000 in 2021 to more than 43,000 today, and government buyers have placed orders worth over Rs 68,000 crore with these companies.
The ministry said regulatory reforms have also accelerated. About 48,000 compliance requirements have been reduced across the Centre and states, and more than 22,000 compliance processes have been digitised. Thousands of rules have been simplified, many provisions have been decriminalised and some have been scrapped.
The government also noted that around 900 provisions of central laws have been removed from the list of offences under the Jan Vishwas Act. Officials say this has made doing business easier and created a more favourable environment for entrepreneurs.