UPSC Prelims Practice Questions — A Decade of Startup India

Question 1

Which one of the following is the nodal body that operationalises the Startup India initiative and observes National Startup Day?

Accepted Answer

Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry

Answer

Department of Financial Services, Ministry of Finance

Answer

Ministry of Micro, Small and Medium Enterprises

Answer

NITI Aayog

Question 2

Consider the following schemes and the feature/agency paired with each, operating under the Startup India umbrella:
1. Fund of Funds for Startups (FFS) — operated through SIDBI.
2. Startup India Seed Fund Scheme (SISFS) — provides collateral-free debt funding.
3. Credit Guarantee Scheme for Startups (CGSS) — operationalised by NCGTC.
4. Atal Innovation Mission — a funding scheme administered by DPIIT under Startup India.
Which of the above pairs is/are correctly identified?

Accepted Answer

1 and 3

Answer

1 and 2

Answer

2 and 4

Answer

1, 3 and 4

Question 3

Which one of the following agencies operates the Fund of Funds for Startups (FFS) on the ground by selecting and committing capital to the funds it backs?

Accepted Answer

Small Industries Development Bank of India (SIDBI)

Answer

Securities and Exchange Board of India (SEBI)

Answer

National Credit Guarantee Trustee Company (NCGTC)

Answer

National Bank for Agriculture and Rural Development (NABARD)

Question 4

Under the Fund of Funds for Startups (FFS), the corpus is not invested directly in startups but is committed to intermediary funds registered with which one of the following regulatory authorities?

Accepted Answer

Securities and Exchange Board of India (SEBI)

Answer

Reserve Bank of India (RBI)

Answer

Insurance Regulatory and Development Authority of India (IRDAI)

Answer

Pension Fund Regulatory and Development Authority (PFRDA)

Question 5

With reference to the Startup India Fund of Funds 2.0 (FoF 2.0), consider the following statements:
1. It was approved by the Union Cabinet with a total corpus of ₹10,000 crore.
2. It will be implemented through commitments to SEBI-registered Category I and II Alternative Investment Funds.
3. It directly invests government funds into individual startups selected by DPIIT.
4. It aims to mobilize additional capital by crowding-in private investment.
Which of the statements given above are correct?

Accepted Answer

1, 2 and 4

Answer

1 and 2 only

Answer

2, 3 and 4

Answer

1 and 4 only

Question 6

As per the DPIIT operational guidelines for the Startup India Fund of Funds 2.0, which one of the following is identified as the primary priority segment meant to receive patient, long-term capital?

Accepted Answer

Deep tech and tech-driven innovative manufacturing

Answer

Real-estate and construction startups

Answer

Quick-commerce and food-delivery startups

Answer

Foreign-domiciled trading firms

Question 7

Consider the following statements about the evolution of Startup India funding schemes:
1. The Fund of Funds for Startups (FFS) was launched in 2016 as part of the Startup India Action Plan.
2. The Startup India Seed Fund Scheme (SISFS) was notified in 2021 to provide early-stage seed funding.
3. The Credit Guarantee Scheme for Startups (CGSS) was launched in 2016 simultaneously with FFS.
4. SISFS provides assistance for proof of concept, prototype development and product trials.
Which of the statements given above are correct?

Accepted Answer

1, 2 and 4

Answer

1 and 3

Answer

2 and 4 only

Answer

1, 3 and 4

Question 8

The Startup India Seed Fund Scheme (SISFS) was approved with a corpus of how much, for a four-year period beginning 2021-22?

Accepted Answer

₹945 crore

Answer

₹10,000 crore

Answer

₹2,750 crore

Answer

₹667 crore

Question 9

Consider the following ecosystem schemes and their nodal ministry/agency:
1. Atal Innovation Mission — NITI Aayog.
2. ASPIRE — Ministry of Micro, Small and Medium Enterprises.
3. PMEGP — implemented by KVIC under the Ministry of MSME.
4. Startup Village Entrepreneurship Programme (SVEP) — Ministry of Commerce and Industry.
Which of the above pairs is/are NOT correctly identified?

Accepted Answer

4 only

Answer

1 and 4

Answer

2 and 3

Answer

3 only

Question 10

With reference to how the Atal Innovation Mission (AIM) compares with related entrepreneurship schemes, consider the following statements:
1. Unlike PMEGP, which is a credit-linked subsidy scheme for micro-enterprises, AIM is focused on fostering a culture of innovation and entrepreneurship.
2. AIM is housed within NITI Aayog, whereas ASPIRE is anchored in the Ministry of MSME.
3. Both SVEP and PMEGP are administered exclusively by the very ministry that runs the Startup India initiative.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 11

With reference to the scale of India's startup ecosystem as of December 2025, consider the following statements:
1. India has crossed 2 lakh DPIIT-recognised startups.
2. India is the third-largest startup ecosystem in the world.
3. Around 50% of recognised startups have emerged from Tier-II and Tier-III cities.
4. Nearly 44,000 is the total number of startups recognised over the entire decade since 2016.
Which of the statements given above is/are NOT correct?

Accepted Answer

4 only

Answer

1 and 2

Answer

2 and 3

Answer

1, 2 and 3

Question 12

Which one of the following provisions of the Income-tax Act, 1961 constitutes the flagship tax incentive for eligible DPIIT-recognised startups, offering a 100% deduction of profits for any three consecutive years out of ten?

Accepted Answer

Section 80-IAC

Answer

Section 56(2)(viib)

Answer

Section 54GB

Answer

Section 80-IB

UPSC Prelims Practice Questions — A Decade of Startup India

Q1. Which one of the following is the nodal body that operationalises the Startup India initiative and observes National Startup Day?

Q3. Which one of the following agencies operates the Fund of Funds for Startups (FFS) on the ground by selecting and committing capital to the funds it backs?

Q4. Under the Fund of Funds for Startups (FFS), the corpus is not invested directly in startups but is committed to intermediary funds registered with which one of the following regulatory authorities?

Q6. As per the DPIIT operational guidelines for the Startup India Fund of Funds 2.0, which one of the following is identified as the primary priority segment meant to receive patient, long-term capital?

Q8. The Startup India Seed Fund Scheme (SISFS) was approved with a corpus of how much, for a four-year period beginning 2021-22?

Q12. Which one of the following provisions of the Income-tax Act, 1961 constitutes the flagship tax incentive for eligible DPIIT-recognised startups, offering a 100% deduction of profits for any three consecutive years out of ten?