Evaluating the Impact of Tax Incentive on Starup growth in India under the startup India scheme
Year: 2025
Type: article
Abstract: The Startup India Scheme, launched by the Government of India in 2016, aims to foster entrepreneurship, innovation, and job creation through various policy measures, including tax incentives. This study evaluates the impact of these tax incentives on the growth trajectory of startups in India. Using a mixed-method approach, primary data were collected from entrepreneurs registered under the Startup India Scheme, and secondary data were drawn from government reports, industry publications, and startup databases. The research assesses key parameters such as revenue growth, employment generation, and investment attraction before and after availing tax benefits. Findings indicate that tax incentives significantly reduce initial financial burdens, enhance cash flow, and improve operational sustainability for early-stage ventures, particularly in technology and manufacturing sectors. However, bureaucratic delays, lack of awareness, and eligibility restrictions limit the full potential of such incentives. The study concludes that while tax incentives under the Startup India Scheme act as a catalyst for growth, complementary measures such as simplified compliance procedures and targeted awareness programs are essential to maximize their impact. The results have policy implications for enhancing India’s startup ecosystem and fostering sustainable entrepreneurial development.
Author: Mithilesh Verma
Institution: Chhatrapati Shahu Ji Maharaj University
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4414135285