Presentation made by Mr. Arvind Agarwal, IAS, Additional Chief Secretary to Government, Industries & Mines Department, Government of Gujarat on Policy initiatives of Government at WhatNext 2016 at Ahmedabad

1. Gujarat Entrepreneurial Ecosystem
New Policy Initiatives

2. India is the 3rd Largest & Fastest Growing Startup Base
 4,200+ Startups
 3-4 Startups are born each day
 Average age of Startup founders in India is 28 years (36 years in Silicon Valley)
 110 Incubators/Accelerators (40% growth since 2014)
 490 Active Investors (123% growth since 2014)
 Total Funding of $5 Billion in 2015 (125% growth over 2014)
 Approx. 85,000 employed in Startups
Earlier: Startups were visible mainly in areas such as technology/internet and non-
tech sectors like grocery and food delivery
Now: They are increasingly visible in other sectors like manufacturing

3. GoI has drawn out an action plan to catalyze entrepreneurship
The pillars of support:
Simplification and
Handholding
Funding Support
and Incentives
Industry-Academia
Partnership and
Incubation
Giving a big push to Startups, GoI in January 2016 launched the ambitious
Startup India Action Plan.
The plan lists out incentives for development and growth of Startups, comprehensive
set of structural and regulatory reforms, and collaborations between Industry and
Academia to bolster the Startup Ecosystem.
Timeline: 4 years, with incentives provided for 3 years.

4. Key initiatives for Startups
Central funding of
Rs. 10,000 crore
‘fund of funds’
Self-certification,
to reduce
regulatory burden
Mandatory 20%
procurement from Startups,
by Governments and PSUs
"Startup Hub" for
knowledge exchange
and funding
Mobile app for
registration, single
window clearance and
exit
Panel of facilitators
for filing patent
applications
Credit guarantee
fund with a corpus
of Rs. 500 crore
Tax exemption
on capital gains
extended
Income tax
exemption
for 3 years
International
and National
startup fests
Atal
Innovation
Mission
Funding support
for development
of incubators
(PPP)
New
research
parks
Annual
incubator
grand
challenge

5. Gujarat is among the first states to roll out an incentive policy for Startups
 Gujarat is known for its enterprising
community and industries.
 Natural choice for Entrepreneurs
Investor-friendly business climate, robust
infrastructure, rich natural resources, skilled
manpower & supporting Government polices.
 Government has been promoting start-ups
by focusing on identification of business ideas
& opportunities, supporting in networking,
mentoring and incubation.
 Ahmedabad is an “Emerging City” for
Startups (NASSCOM Newsletter 2015)
 1st in Ease of Doing
Business, as per DIPP and
World Bank
 One of the top states in
India for Start-ups, as per
India SME Forum
 Highest Investment
Potential in India, as per
National Council of Applied
Economic Research (NCAER)
Conducive Business Environment Standout Achievements

6. Notable Startups in Gujarat

7. Gujarat has an enabling entrepreneurial ecosystem
1 Entrepreneurs
2 Mentors
3 Incubators and Accelerators
4
Funding Agencies : Angel Investors and Venture
Capitalists
5 Government and Regulators
Robust network of:

8. Gujarat based entrepreneurs have enjoyed phenomenal success in their businesses
“Entrepreneurship” is revered almost as a religion
Entrepreneurs have inherent spirit of adventure and
huge appetite for risk
Entrepreneurs are respected and there in no taboo
attached with it
Entrepreneurs have the right mind-set and social
conditioning required to nurture entrepreneurship

9. Presence of mentors recognized globally for their excellence and contributions
ISRO, PRL, EDI, IIM, IIT, NIT, GTU, MICA, PDPU, DAIICT, IRMA,
CEPT etc.
As part of Student Startup Support System, many institutes
have incorporated Entrepreneurship in their curriculum
GTU offers specialization in Technology Entrepreneurship while EDI offers
PGDM in Business Entrepreneurship.
Industry associations/organizations like TiE, CII, Gujarat
Chamber of Commerce, FICCI, NASSCOM, etc. encourage
entrepreneurship
Presence of Industrial Training Institutes (ITIs) in each
district

10. Strong presence of Incubators and Accelerators
 Incubators
Many universities have taken a progressive step and setup incubation
centres for promoting and nurturing the innovations of aspiring
entrepreneurs in different sectors.
 Accelerators
Accelerators conceptualize and organize engaging entrepreneurial
programmes for entrepreneurs to connect, share and collaborate with
each other.
 Events/exhibitions/seminars are organized round the year by
institutions like iCreate, EDI, CIIE, TiE, SRISTI, NIF, etc.
Platform for entrepreneurs to discuss, display and share products/
business ideas with others.

11. Approved Nodal Institutions
Sr. Name of Nodal Institute
1 Gujarat Technological University, Ahmedabad
2 MICA Incubator, Ahmedabad
3 CIIE, IIM, Ahmedabad
4 Venture Studio, Ahmedabad
5 IIT Gandhinagar
6 Innovation & Incubation Centre, PDPU, Gandhinagar
7 DAIICT, Gandhinagar
8 Lok Jagruti Kendra, Ahmedabad
Sr. Name of Nodal Institute
9 Ganpat University, Mehsana
10 GLS University, Ahmedabad
11 iCreate, Ahmedabad
12 GSBTM, Savli
13 NID, Ahmedabad
14 EDI, Bhat, Gandhinagar
15 Innovify Research Foundation
16 Kadi Sarva Vidyalaya Kelavani Mandal

12. Funding Agencies
Venture Capital/
Private Equity Funds
Gujarat Venture
Finance Ltd (GVFL)
Infuse Ventures
Angel Funds
Gujarat Angel Investor
Network (GAIN)
Ahmedabad Angel
Network
Incube Ventures
Ahmedabad Venture
Alliance
Rajkot Angel Investors
O2H Ventures
GVFL has
supported
over 70
companies,
till date.
• Funding is provided by leading
institutions such Gujarat Venture
Finance Ltd (GVFL) and Gujarat
Angel Investors Network (GAIN).
• GVFL: Backed by National and
International Institutions like CDC–
UK, HDFC, ICICI and various
State Corporations. It is one of the few
Venture Capitalists (VC) to witness
complete life-cycle of VC investment.
• GAIN: Focuses exclusively on start-ups
and early-stage companies in smaller
cities and towns.

13. Gujarat Startup Mission will provide a platform to support Startups
Strategic
Location
Growing
Hubs
Strong Talent
Pool
Ease of
Doing
Business
Robust
Infrastructure
Start-Up
Policy
Strong
Economic
Growth
Start-Up
Funding
Start your Entrepreneurial Journey in the emerging Startup
destination of India
Gujarat
Startup
Mission
Will be started to give concrete
shape to the innovative ideas
of the youth of the State

14. State Government has earmarked Rs. 97 Crore for Startups
As part of Youth Development Year, the Government will assist
the youth in various ways to equip them professionally and
encourage their innovative ideas
Provision of funds in the Budget for 2016-17 for:
• Encouraging Startup and MSME projects
• Effective implementation of the Startup policy
• Corpus fund to accelerate incubation, innovation and Startup
through iCreate

15. Scheme for Assistance for Startups under Industrial Policy 2015
Aim is to support 2500 Startups over a period of 5 years
Government has introduced the “Scheme for Assistance for Startups/
Innovation” with start-up fund allocation of Rs. 250 Crore, with the aim of:
 Developing entrepreneurial skills in youth by providing them
mentoring services and range of facilities
 Creating a favourable ecosystem for Start-ups, Innovation and
Technology Transfer
*The scheme has come in to force from January 2015

16. Quantum of Assistance
Sustenance Allowance
• Rs. 10,000 per month to the innovation team as
sustenance allowance for a period of 1 year, for
projects recommended by the Approval Committee
of the Nodal Institution
Mentoring Service
• Rs. 5 Lakh to Nodal Institution for mentoring
services
Development/Prototype/Proof of Concept
• Rs. 10 Lakh for development/prototype/proof of
concept. Nodal Institution may use this for
purchasing materials, equipments and sources for
market development
Startups/Innovators
will be supported in
concepts by getting
them free access to:
• University Libraries
• Government
Laboratories
• SDC (GIDC)
• Centres of Excellence
• PSUs
• Other Establishments

17. Additional assistance when idea gets approved for commercialization
Funding • Assistance in getting Angel Funding and Venture Capital
Marketing/
Publicity
• Marketing/publicity assistance of up to Rs. 10 Lakh for
introduction of product/service in the market
VAT Related
Incentive
• Reimbursement to the extent of 80% of Net VAT paid
(excluding Additional Tax & Reduction of ITC as per GVAT
Act 2003)
Other benefits as per MSME schemes will also be available
Procedure for availing assistance

18. Procedure for availing assistance
Startup/Innovator
will approach a Nodal
Institution with an
innovative
idea/concept.
The Approval
Committee of the
Nodal Institution will
review and approve
the idea/concept.
Once approved, the
Nodal Institution will
submit proposal for
availing assistance for
mentoring services.
State Level
Implementation
Committee (SLIC)
will sanction the
assistance based on
number of
innovators.
Nodal Institution will
submit proposal for
availing assistance for
materials,
equipments and
sources for market
development.
State Level
Implementation
Committee (SLIC)
will sanction the
assistance.
Once the idea gets ready for commercialization, the Startup/Innovator will
apply to the Government for availing additional assistance.

19. THANK YOU