Chapter 15 · Topic 15.2 · Prelims + Mains2 of 3
Government Schemes: Atmanirbhar, Digital India, Startup India
Key points
- Atmanirbhar Bharat.
- Digital India.
- Startup India.
1 PYQ 2015–2024
Prelims box: facts and traps
| Pillar | Meaning |
|---|---|
| Economy | Quantum jumps, not incremental change |
| Infrastructure | Modern infrastructure as India's identity |
| System | Technology-driven delivery |
| Demography | Vibrant population as a source of energy |
| Demand | Using the full power of domestic demand and supply chains. |
- Atmanirbhar Bharat Abhiyan was announced in May 2020 with a ₹20 lakh crore package (about 10% of GDP) in response to COVID-19.
- Digital India was launched on 1 July 2015.
- Under India's G20 Presidency in 2023, a new engagement group, Startup20, was started; its inception meeting was held in Hyderabad at the end of January 2023, as PIB reported on 31 January 2023.
- Trap (UPSC Prelims 2024, the Digital India Land Records Modernisation Programme): all the statements are correct.
- Trap: The Fund of Funds for Startups was an Action Plan promise approved by the Union Cabinet in 2016 with a corpus of ₹10,000 crore to be built up over the 14th and 15th Finance Commission cycles, not in a single year.
On this page (3 sections)
Atmanirbhar Bharat
| Pillar | Meaning |
|---|---|
| Economy | Quantum jumps, not incremental change |
| Infrastructure | Modern infrastructure as India’s identity |
| System | Technology-driven delivery |
| Demography | Vibrant population as a source of energy |
| Demand | Using the full power of domestic demand and supply chains |
Atmanirbhar Bharat Abhiyan was announced in May 2020 with a ₹20 lakh crore package (about 10% of GDP) in response to COVID-19. It brought in the PLI schemes, MSME credit guarantees (ECLGS), the revised MSME definition and the Self-Reliant India (SRI) Fund, whose ₹50,000 crore corpus has invested ₹16,260 crore in 693 MSMEs (PIB, March 2026).
Self-reliance here means integrating with global supply chains from strength, not import substitution as in the closed economy before 1991.
Digital India
| Vision area | Examples |
|---|---|
| Digital infrastructure as a utility | BharatNet, Aadhaar, mobile and bank account |
| Governance and services on demand | DigiLocker, UMANG, e-courts, land records |
| Digital empowerment of citizens | Digital literacy, services in Indian languages |
Digital India was launched on 1 July 2015. Its public digital stack (Aadhaar, UPI, DigiLocker, CoWIN, ONDC) is called Digital Public Infrastructure.
Digital India aims to connect villages to the Internet and bring Wi-Fi to schools and public places. DigiLocker, offered under Digital India, lets citizens access their e-documents from anywhere.
Under the Digital India Land Records Modernisation Programme, the Centre funds 100%, cadastral maps are digitised and Records of Rights are transliterated into any Eighth Schedule language (Prelims 2024: 1, 2 and 3).
With reference to the Digital India Land Records Modernisation Programme, consider the following statements : 1. To implement the scheme, the Central Government provides 100% funding. 2. Under the Scheme, Cadastral Maps are digitised. 3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India. Which of the statements given above are correct ?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Show answer
Answer: (d) · UPSC official key
Mains 2015: How can the ‘Digital India’ programme help farmers to improve farm productivity and income? Mains 2015 Through e-NAM, soil health cards, weather advisories and DBT.
How can the ‘Digital India’ programme help farmers to improve farm productivity and income? What steps has the Government taken in this regard?
Startup India
| Point | Detail (PIB, 17 April 2026) |
|---|---|
| Launched | 16 January 2016, with an Action Plan |
| Recognised startups | Over 2.23 lakh as on 31 March 2026; over 23.36 lakh direct jobs |
| FY 2025-26 | Over 55,200 recognised: the highest in any year |
| Women | About 48% have at least one woman director or partner |
| Funding | Fund of Funds (over ₹7,000 crore to 135+ AIFs); FFS 2.0 of ₹10,000 crore; Seed Fund ₹945 crore; credit guarantee up to ₹20 crore |
The Atal Innovation Mission, which runs Atal Tinkering Labs and incubators, is set up under NITI Aayog.
Mains 2026: How are startups in India promoting entrepreneurship, innovation and employment? Mains 2026 Constraints include funding winters, regulation, talent and global rate cycles.
How are startups in India promoting entrepreneurship, innovation and employment? Discuss the global and domestic challenges in their working and suggest suitable measures to overcome these challenges.
Mains box: analysis and answer points
- Self-reliance here means integrating with global supply chains from strength, not import substitution as in the closed economy before 1991.
- Digital India aims to connect villages to the Internet and bring Wi-Fi to schools and public places.
- Likely next angle: SRI Fund
- Asked: Mains 2015 (GS Paper III, 12.5 marks): How can the ‘Digital India’ programme help farmers to improve farm productivity and income? What steps has the Government taken in this regard?
Practice
Practice MCQs (8)
BHASKAR, launched by DPIIT under the Startup India initiative in September 2024, is
Answer (a) & explanation
BHASKAR stands for Bharat Startup Knowledge Access Registry. DPIIT launched it on 16 September 2024 as a centralised digital platform for the start-up ecosystem. It brings together start-ups, investors, mentors, service providers and government bodies in one place so that they can find each other, share knowledge and collaborate, instead of searching across many separate portals. Each stakeholder gets a personalised BHASKAR ID, which helps with discovery and tailored recommendations. It is thus an information and networking tool, not a source of money or recognition. Start-up funding comes through the Fund of Funds, SISFS and CGSS; State policies are assessed in the States' Startup Ranking; and National Startup Awards recognise outstanding firms. MAARG, by contrast, is the dedicated mentorship platform. BHASKAR complements both by acting as the registry layer that links these actors.
Under the start-up definition notified by DPIIT in February 2026, an entity that is not a Deep Tech Startup ceases to be a 'Startup' if its turnover in any financial year since incorporation exceeds
Answer (a) & explanation
G.S.R. 108(E) of 4 February 2026 sets three numerical tests for an ordinary start- up: it must be within ten years of incorporation or registration, and its turnover in every financial year since then must not exceed ₹200 crore; the third test is qualitative (innovation or a scalable model with high employment or wealth potential). The Explanation adds that an entity ceases to be a start-up once it completes ten years or its turnover for any year exceeds ₹200 crore. The previous limit, set in 2019, was ₹100 crore; the 2016 original was ₹25 crore. The ₹300 crore figure applies only to entities recognised as Deep Tech Startups, which also get twenty years. PIB announced the change on 5 February 2026. Turnover takes its meaning from section 2(91) of the Companies Act, 2013.
With reference to the Fund of Funds for Startups (FFS) approved in 2016, consider the following statements:
1. It does not invest directly in start-ups; it contributes to SEBI-registered Alternative Investment Funds, which in turn invest in start-ups.
2. The Small Industries Development Bank of India (SIDBI) is its operating agency, while DPIIT monitors it.
3. An AIF supported by it must invest at least twice the amount it receives from the FFS in start- ups.
4. Its entire corpus of ₹10,000 crore was released in the Union Budget of 2016-17.
Which of the statements given above are correct?
Answer (a) & explanation
The Fund of Funds for Startups was an Action Plan promise approved by the Union Cabinet in 2016 with a corpus of ₹10,000 crore to be built up over the 14th and 15th Finance Commission cycles, not in a single year; budget support was released in tranches, for example ₹500 crore in 2015-16 and ₹600 crore in 2016-17. SIDBI manages it as operating agency and DPIIT is the monitoring agency. It is a fund of funds: it commits capital to SEBI- registered Category I and II AIFs, the daughter funds, and never picks start-ups itself. Each daughter fund must invest at least twice the FFS commitment in start-ups, so every rupee of public money mobilises private money. Statement 4 therefore fails, while statements 1 to 3 describe the design accurately.
Consider the following statements about the evolution of the official definition of a 'startup' in India:
1. The first notification of February 2016 treated an entity as a startup for up to five years from incorporation, with turnover not exceeding ₹25 crore in any year.
2. The February 2019 notification extended the period to ten years and raised the turnover limit to ₹100 crore.
3. The February 2026 notification extended the age limit for all startups to twenty years.
Which of the statements given above are correct?
Answer (b) & explanation
The definition has been widened in stages. G.S.R. 180(E) of 17 February 2016, issued a month after Startup India was launched, covered entities up to five years old with turnover up to ₹25 crore that worked on technology- or IP-driven innovation. A 2017 amendment raised the age to seven years (ten for biotechnology), and an April 2018 notification was replaced by G.S.R. 127(E) of 19 February 2019, which set ten years and ₹100 crore and accepted a scalable model with high potential for employment or wealth creation as an alternative to innovation. G.S.R. 108(E) of 4 February 2026 kept ten years for ordinary start-ups and raised turnover to ₹200 crore; the twenty-year period is only for recognised Deep Tech Startups. So statement 3 overgeneralises.
'Startup20', a forum dedicated to start-ups within the G20 process, was
Answer (a) & explanation
G20 work runs on two tracks, the Sherpa and Finance tracks of governments, plus engagement groups that bring in non-government voices, such as Business20, Labour20 and Youth20. Until 2023 start-ups had no dedicated group. Under India's G20 Presidency in 2023, a new engagement group, Startup20, was started; its inception meeting was held in Hyderabad at the end of January 2023, as PIB reported on 31 January 2023. India's G20 Sherpa called it India's innovation in the G20 process. Its aim was to create a global narrative for supporting start-ups and enabling synergy among start-ups, corporates, investors, innovation agencies and other ecosystem stakeholders, through three task forces: Foundation and Alliances, Finance, and Inclusion and Sustainability. Domestically, AIM 2.0 lists anchoring Startup20 as part of its international collaborations.
Consider the following measures:
1. Self-certification of compliance with specified labour and environment laws
2. A Fund of Funds for Startups with a corpus of ₹10,000 crore
3. A credit guarantee fund for start-ups
4. A mandatory reservation of 25 per cent of all Central Government procurement for start-ups
How many of the above were among the action points of the Startup India Action Plan announced in January 2016?
Answer (c) & explanation
Startup India was launched on 16 January 2016 with a 19-point Action Plan, listed in a PIB reply of 28 June 2019. Its simplification measures included self-certification under labour and environment laws, a Startup India Hub, an online portal and app, fast-tracked and cheaper patent filing, relaxed norms of public procurement and faster exit. Its funding measures were a Fund of Funds of ₹10,000 crore, a credit guarantee fund, a capital-gains exemption, a three-year income-tax exemption and relief on investment above fair market value. Its incubation measures included the Atal Innovation Mission, research parks and the incubator grand challenge. The procurement promise was a relaxation of prior-experience and turnover norms, not a quota. The 25 per cent procurement target belongs to the 2012 public procurement policy for micro and small enterprises.
With reference to the category of 'Deep Tech Startup' created by DPIIT in February 2026, consider the following statements:
1. Such an entity can retain its status for up to twenty years from the date of its incorporation or registration.
2. Its turnover must not exceed ₹300 crore in any financial year since incorporation or registration.
3. The status depends only on the entity's age and turnover; no technology-related attribute has to be shown.
Which of the statements given above are correct?
Answer (d) & explanation
G.S.R. 108(E) of 4 February 2026 introduced the Deep Tech Startup for firms whose products need long research cycles. Its relaxations are an age limit of twenty years (against ten) and a turnover ceiling of ₹300 crore (against ₹200 crore). But age and turnover alone do not confer the label. The entity must also show four attributes: it works on a solution based on new scientific or engineering knowledge that is yet to be developed; it spends a high share of revenue or funding on R&D; it owns or is creating significant novel intellectual property and is moving to commercialise it; and it faces long gestation, high capital and infrastructure needs and large technical uncertainty. Whether these are met is decided under a framework issued by DPIIT, using documents the applicant submits. So statement 3 is false.
Under the operational guidelines of the Startup India Fund of Funds 2.0, each category of AIF must invest in start-ups at least a stated multiple of the amount committed to it. Consider the following pairs: Segment of AIF — Minimum investment multiplier
1. AIFs supporting deep-tech start-ups — 1.5 times
2. Smaller AIFs (micro VCs) supporting early-growth start-ups — 2 times
3. AIFs supporting technology-driven innovative manufacturing start-ups — 2.5 times
4. Sector- and stage-agnostic AIFs — 1.75 times
How many of the pairs given above are correctly matched?
Answer (b) & explanation
Annexure-I of the FoF 2.0 operational guidelines (April 2026) sets a minimum investment multiplier for each segment: 1.5x for deep-tech AIFs, 2x for smaller AIFs (micro VCs with corpus up to ₹400 crore), 1.75x for AIFs backing technology-driven innovative manufacturing in manufacturing-oriented champion sectors, and 2.5x for sector- and stage- agnostic AIFs. The logic is risk-graded leverage: where private capital is scarce and gestation is long, as in deep tech and manufacturing, the government asks for less private matching; where the market is deeper, as in generalist funds, it demands more. The same table caps the government's share of a single AIF at 40, 30, 30 and 25 per cent respectively. Pairs 1 and 2 are correct; pairs 3 and 4 have their multipliers swapped.
0 / 0 correct
Prelims PYQs on this topic (1)
With reference to the Digital India Land Records Modernisation Programme, consider the following statements :
- 1. To implement the scheme, the Central Government provides 100% funding.
- 2. Under the Scheme, Cadastral Maps are digitised.
- 3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.
Which of the statements given above are correct ?
Answer (d) & explanation
All three statements are correct (d). Statement 1 is right: the Digital India Land Records Modernisation Programme (DILRMP) has been a Central Sector scheme with 100% central funding since 2016. Statement 2 is right: it digitises cadastral maps and links them to the computerised Records of Rights. Statement 3 is right: Records of Rights are being transliterated into any of the 22 Eighth Schedule languages, so people can read them in their own language.
Notice the ULPIN, a 14-digit unique land parcel number, called "Bhu-Aadhaar", and NGDRS, a single system for registering property. The aim is conclusive titling, fewer land disputes and easier loans. The SVAMITVA scheme maps village homes using drones.
Answer as per the official UPSC answer key.
Write an answer
In 150 words, explain the significance of Government Schemes with one recent example.
Flashcards (5)
Atmanirbhar package size?
₹20 lakh crore (May 2020).
Digital India launched?
1 July 2015.
DigiLocker is under?
Digital India.
Startup India launched?
16 January 2016.
Atal Innovation Mission is under?
NITI Aayog.
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Next topic · 15.3 →Government Schemes: Skill India Programme