Startup Ecosystem, Unicorn Economy & IBC Framework
India has emerged as the third-largest startup ecosystem in the world, catalyzed by the launch of the 'Startup India' initiative in January 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT). The initiative provides tax holidays, intellectual property fast-tracking, and capital access through the Fund of Funds for Startups (FFS) managed by SIDBI. A startup achieving a private market valuation of 1 billion US dollars is designated as a 'unicorn', with India hosting over 110 unicorns across fintech, e-commerce, enterprise tech, and edtech sectors. Supporting enterprise restructuring and orderly market exits, Parliament enacted the Insolvency and Bankruptcy Code (IBC) in 2016, introducing a time-bound Corporate Insolvency Resolution Process (CIRP) supervised by the Insolvency and Bankruptcy Board of India (IBBI).
Key Concepts & Examination Highlights
- The Startup India initiative was launched on January 16, 2016; January 16 is officially celebrated as National Startup Day in India.
- A unicorn company is a privately held startup venture valued at $1 billion (USD) or more.
- The Insolvency and Bankruptcy Code (IBC) was enacted in 2016, creating a time-bound resolution framework administered by IBBI and NCLT.
- The Fund of Funds for Startups (FFS) with an initial corpus of ₹10,000 crore is operated by the Small Industries Development Bank of India (SIDBI).