Context: Recently, the Department for Promotion of industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, is set to launch the BHASKAR initiative, under the Startup India programme, to strengthen the startup ecosystem in the country.

• Part of the Startup India program, the BHASKAR initiative is a platform meant to help key players in the entrepreneurial ecosystem--startups, investors, mentors, service providers, and government agencies--centralise, simplify, and improve their collaboration.

About BHASKAR 

• BHASKAR stands for Bharat Startup Knowledge Access Registry' (BHASKAR)

• It is a platform designed to centralise, streamline, and enhance collaboration among key stakeholders within the entrepreneurial ecosystem, including startups, investors, mentors, service providers, and government bodies.

• This initiative aligns with the government of India's vision to transform India into a global leader in innovation and entrepreneurship, reinforcing the country's commitment to the startup movement.

• India is currently home to over 1,46,000 DPIIT-recognised startups (and ranks third globally, following the US and China.)

• BHASKAR seeks to leverage this potential by providing an all-encompassing, one-stop digital platform that addresses the challenges faced by entrepreneurs and investors alike.

Features and Goals

• Personalized BHASKAR IDs: Each stakeholder will receive a unique ID, facilitating easier interaction and efficient discovery of opportunities and partnerships.

• Digital Registry: BHASKAR aims to create the world’s largest digital registry for startup ecosystem stakeholders.

• Central hub: The platform will offer networking, centralized access to resources, and enhanced discoverability to support India's global brand and entrepreneurial growth.

Start-Up Ecosystem of India

• India is the third-largest startup ecosystem globally with over 1.4 lakh DPIIT-registered startups.

Job Creation

• Direct Jobs: DPIIT-recognized startups have created over 5 lakh direct jobs.

• Recent Growth: In 2023, startups generated 3.9 lakh jobs, marking a 46.6% increase from the previous year and a 217.3% rise over the last five years.

• Startups contributed USD 140 billion in FY23, nearly 4% of India's GDP, highlighting their significant role in economic growth and innovation.

• Unicorn: By January 2024, India boasted 111 unicorn startupsvalued at over US$ 350 billion.

• Inclusivity: The rise of women-led startups, now at 18%, further highlights the inclusivity and potential of this thriving sector.

• Top performing sectors: Retail, Enterprise Applications, Fintech, Transportation & Logistics tech, Food & Agriculture tech, Auto tech, Travel & Hospitality tech, and Edtech.

• New Emerging sectors such as DeepTech, SpaceTech, Artificial Intelligence, and EVs have broadened the Indian startup landscape. 

• Several factors have fueled the growth of top-funded sectors, like:

• increased internet penetration

• digitization

• government initiatives

Key Challenges Faced by Indian Startups

• Major issues: Valuationissues, less IPOs , regulatory changes, and macroeconomic and geopolitical trends in 2023

• Capital Access: Hard to secure adequate funding, impacting growth and innovation.

• Investor Challenges: Risk aversion and uncertain market conditions limit investor confidence.

• Sustainable Revenue: Struggles with finding viable business models and achieving profitability.

• Lack of Support: Inadequate physical and technological infrastructure, and limited mentorship and networking opportunities.

• Complexity: Regulatory and tax structures are complex, creating operational challenges.

Government initiatives and policies to nurture the startup ecosystem

• Initiatives like 'Make in India' and 'Startup India' aims to cultivate a business-friendly environment, attract investors and nurture domestic growth. 

• Startup India Hub: The Startup India Hub, initiated by the Department for Promotion of Industry and Internal Trade (DPIIT), is a pivotal platform to promote engagement among stakeholders within the startup ecosystem.

• Atal Innovation Mission (AIM): AIM is an initiative that promotes the establishment of Atal Incubation Centres (AlCs) and Established Incubation Centres (EICs) to nurture innovative startups in their pursuit to become sustainable entities.

• National Initiative for Developing and Harnessing Innovations (NIDHI): It aims to foster innovation through support for incubators, seed funds, accelerators, and Proof of Concept grants.

• Within NIDHI, the Promoting and Accelerating Young and Aspiring Innovators and Startups (PRAYAS) programme aids established Technology Business Incubators (TBI) by providing grants for Proof of Concept and prototype development. 

• Fund of Funds for Startups (FFS): The Government established FFS in 2016, to boost capital availability and stimulate private investments.Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. 

Ministry-wise Initiatives

• Ministry of Micro, Small & Medium Enterprises (MSME): MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new enterprises in the non-farm sector.

• PMEGP being a Central Sector Scheme assists General Category beneficiaries with Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas.

• Ministry of Rural Development (MoRD) is implementing its flagship scheme Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) to reduce poverty.

• The Startup Village Entrepreneurship Program (SVEP) is a sub component of DAY-NRLM to support entrepreneurs in rural areas to set up local enterprises.

• Ministry of Agriculture and Farmers' Welfare (MoA and FW) is implementing “Innovation and Agri-Entrepreneurship Development” programme under Rashtriya Krishi Vikas Yojana (RKVY) to promote innovation and agri-entrepreneurship by providing financial and technical support for nurturing startups ecosystem in the country.