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June 14, 2026
The Dispatch

Definition

Startup India

Startup India is the government initiative to nurture startups through tax benefits, simpler compliance, funding support and recognition.

Startup India offers recognised startups a bundle of benefits: an income-tax holiday for an eligible period, exemptions from certain levies including aspects of the so-called angel tax, self-certification on labour and environmental norms, and faster, cheaper IP protection. Recognition is granted by the government's designated department.

It is backed by a Fund of Funds, operated through SIDBI, that channels capital into venture funds rather than directly into startups. The initiative aims to make India a global startup hub by easing the regulatory and financing hurdles young companies face.

Related terms

  • SIDBISIDBI is the Small Industries Development Bank of India, the principal financial institution for promoting and financing the MSME sector.
  • Pradhan Mantri Mudra YojanaPM Mudra Yojana provides collateral-free loans to small and micro non-corporate businesses through banks and other lenders to support self-employment.
  • Stand-Up India SchemeStand-Up India facilitates bank loans to Scheduled Caste, Scheduled Tribe and women entrepreneurs to set up greenfield enterprises.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.