UPSC Prelims Practice Questions — On National Startup Day, PM to participate in a programme marking a decade of Startup India on 16 January
Q1. The programme held at Bharat Mandapam, New Delhi, on National Startup Day (16 January 2026) marked the completion of how many years of the Startup India initiative?
- A. 8 years
- B. 9 years
- C. 10 years
- D. 11 years
Q2. The Startup India initiative, whose launch anniversary is observed as National Startup Day, is administered by which Union ministry?
- A. Ministry of Commerce and Industry
- B. Ministry of Corporate Affairs
- C. Ministry of Micro, Small and Medium Enterprises
- D. Ministry of Finance
Q3. A DPIIT-recognised startup can claim a 100% deduction of profits for any three consecutive years out of ten under which provision of the Income-tax Act, 1961?
- A. Section 80-IAC
- B. Section 56(2)(viib)
- C. Section 80-IB
- D. Section 35AD
Q4. With reference to the institutional architecture of the Startup India programme, consider the following:
1. DPIIT, under the Ministry of Commerce and Industry, is the nodal department for Startup India.
2. SIDBI is the operating agency for the Fund of Funds for Startups.
3. The Inter-Ministerial Board grants income-tax exemption to eligible startups under Section 80-IAC.
4. NITI Aayog is the monitoring agency for the Fund of Funds for Startups.
Which of the above is/are correctly identified?
- DPIIT, under the Ministry of Commerce and Industry, is the nodal department for Startup India.
- SIDBI is the operating agency for the Fund of Funds for Startups.
- The Inter-Ministerial Board grants income-tax exemption to eligible startups under Section 80-IAC.
- NITI Aayog is the monitoring agency for the Fund of Funds for Startups.
- A. 1 and 4 only
- B. 2 and 3 only
- C. 1, 2 and 3
- D. 1, 2, 3 and 4
Q5. The Startup India Fund of Funds 2.0, approved with a corpus of ₹10,000 crore, is to be operationalised by which agency as its implementation agency?
- A. Small Industries Development Bank of India (SIDBI)
- B. National Bank for Agriculture and Rural Development (NABARD)
- C. National Investment and Infrastructure Fund (NIIF)
- D. Securities and Exchange Board of India (SEBI)
Q6. Which one of the following best describes the operational structure of the Fund of Funds for Startups (FFS)?
- A. It does not invest directly in startups but contributes capital to SEBI-registered Alternative Investment Funds, which in turn invest in startups
- B. It directly disburses seed grants to DPIIT-recognised startups for prototype development and market entry
- C. It provides collateral-free credit guarantee cover to banks lending to startups
- D. It offers a 100% income-tax deduction to startups for three consecutive years
Q7. The Startup India Seed Fund Scheme (SISFS), with a corpus of ₹945 crore, came into effect from which date?
- A. 1 April 2021
- B. 16 January 2016
- C. 1 April 2016
- D. 6 October 2022
Q8. Under the Startup India Seed Fund Scheme, which single body is responsible for the overall execution and monitoring of the scheme, including the selection of incubators?
- A. Experts Advisory Committee (EAC)
- B. Small Industries Development Bank of India (SIDBI)
- C. Inter-Ministerial Board (IMB)
- D. NITI Aayog
Q9. Which one of the following correctly describes the Credit Guarantee Scheme for Startups (CGSS)?
- A. It provides credit guarantee cover against collateral-free loans extended by member institutions such as scheduled commercial banks, NBFCs and SEBI-registered AIFs to DPIIT-recognised startups
- B. It provides credit guarantee cover to loans given to micro and small enterprises, replacing the CGTMSE scheme
- C. It supplies equity capital to startups through SEBI-registered daughter funds
- D. It offers seed grants to early-stage startups for proof of concept and market entry
Q10. Consider the following statements comparing the DPIIT-recognised startup ecosystem in 2016 with its status reported during the decade of Startup India:
1. The number of DPIIT-recognised startups rose from around 502 in 2016 to over 1.5 lakh by 31 December 2024.
2. The ecosystem now includes more than 100 unicorns.
3. India is currently ranked as the world's largest startup ecosystem.
Which of the statements given above is/are correct?
- The number of DPIIT-recognised startups rose from around 502 in 2016 to over 1.5 lakh by 31 December 2024.
- The ecosystem now includes more than 100 unicorns.
- India is currently ranked as the world's largest startup ecosystem.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q11. The BHASKAR (Bharat Startup Knowledge Access Registry) digital platform was launched by which of the following?
- A. Department for Promotion of Industry and Internal Trade (DPIIT)
- B. Small Industries Development Bank of India (SIDBI)
- C. Atal Innovation Mission, NITI Aayog
- D. Invest India
Q12. Under the aegis of DPIIT, the programme marking a decade of Startup India, addressed by the Prime Minister on National Startup Day 2026, was hosted at which venue?
- A. Bharat Mandapam, New Delhi
- B. Vigyan Bhavan, New Delhi
- C. Pragati Maidan, New Delhi
- D. Rashtrapati Bhavan, New Delhi