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Indian EconomyHard

According to the definition used for recognition under Startup India, an entity may be treated as a startup for a period of up to

  1. A.Five years from incorporation
  2. B.Seven years from incorporation
  3. C.Ten years from incorporation
  4. D.Fifteen years from incorporation

Correct answer

C. Ten years from incorporation

Explanation

The correct answer is C, ten years from incorporation. Under the definition notified for recognition by DPIIT, an entity qualifies as a startup for up to ten years from the date of its incorporation or registration, provided its turnover has not exceeded one hundred crore rupees in any financial year, it works towards innovation, development or improvement of products or processes or has a scalable business model, and it has not been formed by splitting up or reconstruction of an existing business. Option A, five years, is wrong because that was never the limit. Option B, seven years, is wrong although it was the earlier limit before the definition was widened, which makes it the most attractive distractor. Option D, fifteen years, is wrong because no such period appears in the definition.

Read the full article: Make in India, Startup India and PLI Scheme Notes

Practice Questions

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Q2.Indian EconomyMedium

Make in India and Startup India are both implemented by which department?

  1. A.Department of Economic Affairs
  2. B.Department for Promotion of Industry and Internal Trade
  3. C.Department of Revenue
  4. D.Department of Financial Services
Show answer
Correct answer: B. Department for Promotion of Industry and Internal Trade

The correct answer is B, the Department for Promotion of Industry and Internal Trade, known as DPIIT, which works under the Ministry of Commerce and Industry and is the nodal department for both programmes; it also recognises startups and maintains the national single window system.

Q3.Indian EconomyMedium

Under the Make in India programme, the share of manufacturing in India's gross domestic product was targeted to be raised to

  1. A.15 per cent
  2. B.20 per cent
  3. C.25 per cent
  4. D.35 per cent
Show answer
Correct answer: C. 25 per cent

The target declared for Make in India was to raise the share of manufacturing in gross domestic product to twenty-five per cent along with the creation of a large number of jobs; the deadline, first set for 2022, was later extended.

Q4.Indian EconomyMedium

The Startup India Action Plan was launched on 16 January 2016. That date is now observed every year as

  1. A.National Entrepreneurship Day
  2. B.National Startup Day
  3. C.National MSME Day
  4. D.National Industry Day
Show answer
Correct answer: B. National Startup Day

The government declared that 16 January, the day on which the Startup India Action Plan was released in 2016, would be celebrated as National Startup Day, and the National Startup Awards are associated with the same programme.

Q5.Indian EconomyMedium

The Fund of Funds for Startups, set up with a corpus of Rs 10,000 crore, is operated by which institution?

  1. A.Reserve Bank of India
  2. B.NABARD
  3. C.Small Industries Development Bank of India
  4. D.National Housing Bank
Show answer
Correct answer: C. Small Industries Development Bank of India

The Fund of Funds for Startups was created in 2016 with a corpus of ten thousand crore rupees and is operated by SIDBI, which does not invest directly in startups but puts money into alternative investment funds registered with the Securities and Exchange Board of India, and those funds in…