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Most of the time, start-ups find difficulties in accessing credit from the formal sector, naturally they being new. The government also has provided them many incentives.

Department of Industrial Policy and Promotion hosted Startup India Global Venture Capital Summit 2018 on 7th December 2018 in Goa. The Summit saw a gathering of 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 monetized through cutting-edge technologies supported by investor-friendly regulations. The objectives of the Summit were: showcasing the opportunities in India by discussing and highlighting sectors that provide a wide array of investible opportunities; increasing capital flow for Indian startups by showcasing high quality tech and non-tech Indian startups to the global investor community; 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 and3StartupswerefromtheUnited States of America.

Meanwhile, the Central government is setting up a Credit Guarantee Fund (CGF) for start-up companies to enable them to access credit without collateral necessities. Most of the time, start-ups find difficulties in accessing credit from the formal sector; naturally they being new. The government also has provided many incentives for them (see box below):

  • 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
  • Income Tax exemption
  • Exemption from Income Tax on investments received above fair market value
  • Funding support under the Fund of Funds for Startups
  • Guidance and facilitation support from Startup India Hub


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