According to the Ministry of Commerce & Industry, the Department for Promotion of Industry and Internal Trade (DPIIT) has advanced regulatory reforms to shift toward a trust-based framework for businesses and startups.
The release stated that Startup India has recognised over 2.5 lakh startups across more than 770 districts, generating over 25.42 lakh jobs. Under the Startup India Seed Fund Scheme, ₹775.67 crore has been approved for 4,194 startups. The Credit Guarantee Scheme for Startups has guaranteed 532 loans worth ₹1,662.71 crore, with the guarantee cover per borrower doubled from ₹10 crore to ₹20 crore.
DPIIT reported that 47,957 compliances have been reduced across Central Ministries and States or Union Territories, while the Jan Vishwas Acts decriminalised 900 provisions. In labour reforms, 29 Central labour laws were consolidated into four Labour Codes, raising the threshold for prior permission for lay-offs or closures from 100 to 300 workers. Furthermore, India recorded USD 843 billion in foreign direct investment over 12 years, with investment reforms expanding the automatic route across 17 sectors.
What it means
- The guarantee cover per borrower under the Credit Guarantee Scheme for Startups has been doubled from ₹10 crore to ₹20 crore.
- The annual fee for the Credit Guarantee Scheme has been reduced to 1% for 27 Champion Sectors.
- The threshold for prior permission for lay-off or closure has been raised from 100 to 300 workers.
Source
Press Information Bureau, Government of India, “DPIIT Advances Trust-Based Governance Through Startup Support, Regulatory Reforms and Digital Single-Window Clearances”. Read the original release.
Summary of an official release for general information only. Not investment advice. Read the original source before acting on any information.
Official RBI, SEBI, Government and Defence updates as they happen.
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