UPSC Prelims Practice Questions — Startup India Has Evolved into a Defining Movement of New India: Prime Minister Shri Narendra Modi

Q1. The Startup India initiative and its Action Plan are operationalised by which one of the following bodies?

  • A. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • B. Ministry of Micro, Small and Medium Enterprises
  • C. NITI Aayog
  • D. Ministry of Corporate Affairs

Q2. The Startup India Action Plan unveiled on 16 January 2016 organised its 19 action points across broad areas. Which of the following are correctly identified as those areas? 1. Simplification and handholding 2. Funding support and incentives 3. Industry-academia partnership and incubation 4. Export promotion and tariff protection Which of the statements given above is/are correct?

  1. Simplification and handholding
  2. Funding support and incentives
  3. Industry-academia partnership and incubation
  4. Export promotion and tariff protection
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q3. Consider the following stated focus segments of the Startup India Fund of Funds 2.0 (FFS 2.0). Which of the following are correctly identified as its priority segments? 1. Deep-tech startups 2. Early growth-stage startups supported by smaller AIFs 3. Technology-driven and innovative manufacturing startups 4. Direct equity investment by SIDBI into individual startups Which of the statements given above is/are correct?

  1. Deep-tech startups
  2. Early growth-stage startups supported by smaller AIFs
  3. Technology-driven and innovative manufacturing startups
  4. Direct equity investment by SIDBI into individual startups
  • A. 1, 2 and 4
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q4. Which one of the following institutions acts as the Implementation (operating) Agency for the Fund of Funds for Startups (FFS)?

  • A. Small Industries Development Bank of India (SIDBI)
  • B. National Bank for Agriculture and Rural Development (NABARD)
  • C. National Credit Guarantee Trustee Company (NCGTC)
  • D. Securities and Exchange Board of India (SEBI)

Q5. What is the total corpus approved for the Startup India Seed Fund Scheme (SISFS)?

  • A. ₹945 crore
  • B. ₹10,000 crore
  • C. ₹1,000 crore
  • D. ₹2,000 crore

Q6. The Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for certain stated purposes. Which of the following is NOT a purpose of the SISFS? 1. Proof of concept 2. Prototype development 3. Market entry and commercialization 4. Providing collateral-free credit guarantee against bank loans Which of the statements given above is/are NOT correct?

  1. Proof of concept
  2. Prototype development
  3. Market entry and commercialization
  4. Providing collateral-free credit guarantee against bank loans
  • A. 1 only
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 4

Q7. The Credit Guarantee Scheme for Startups (CGSS) provides guarantee cover against credit instruments extended by certain categories of lending institutions. Which of the following is NOT among the institutions whose lending is covered under CGSS? 1. Scheduled Commercial Banks 2. Non-Banking Financial Companies 3. SEBI-registered Alternative Investment Funds 4. Payments Banks Which of the statements given above is/are NOT correct?

  1. Scheduled Commercial Banks
  2. Non-Banking Financial Companies
  3. SEBI-registered Alternative Investment Funds
  4. Payments Banks
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q8. Which one of the following is the sole trustee entity designated to operationalise the Credit Guarantee Scheme for Startups (CGSS)?

  • A. National Credit Guarantee Trustee Company (NCGTC)
  • B. Small Industries Development Bank of India (SIDBI)
  • C. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
  • D. Export Credit Guarantee Corporation (ECGC)

Q9. In the States' Startup Ranking results announced on National Startup Day (16 January 2026), which of the following were correctly identified as 'Best Performers' in Category A (states with population over 1 crore)? 1. Gujarat 2. Karnataka 3. Kerala 4. Himachal Pradesh Which of the statements given above is/are correct?

  1. Gujarat
  2. Karnataka
  3. Kerala
  4. Himachal Pradesh
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q10. What is the total corpus of the Research, Development and Innovation (RDI) Scheme approved by the Union Cabinet in 2025 to spur private-sector-led research in strategic and sunrise domains?

  • A. ₹1,00,000 crore (₹1 lakh crore)
  • B. ₹50,000 crore
  • C. ₹10,000 crore
  • D. ₹20,000 crore

Q11. Approximately how many entities stood recognised as startups by DPIIT under the Startup India initiative as of December 2025?

  • A. More than 2,00,000
  • B. About 1,18,000
  • C. About 73,000
  • D. About 45,000

Q12. Consider the following programmes/schemes. Which of the following is NOT a component operating under the Atal Innovation Mission (AIM)? 1. Atal Tinkering Labs 2. Atal Incubation Centres 3. Atal Community Innovation Centres 4. Startup India Seed Fund Scheme Which of the statements given above is/are NOT correct?

  1. Atal Tinkering Labs
  2. Atal Incubation Centres
  3. Atal Community Innovation Centres
  4. Startup India Seed Fund Scheme
  • A. 1 only
  • B. 2 and 3
  • C. 3 and 4
  • D. 4 only