Prime Minister Narendra Modi today said the government is taking several steps to promote young entrepreneurs in the country, adding that startups are no longer confined to big cities.

Smaller towns and villages too are emerging as vibrant startup centres, the Prime Minister said while interacting with young entrepreneurs from across the country, including cities like Dehradun, Guwahati and Raipur.

He also said that along with 'Make in India', 'Design in India' too is important for start-ups.

"Adequate capital, courage and connecting with people are required for excelling in the start-up sector," he said. Modi added that there was a time when startups meant only digital and technology innovation but now things are changing and we are seeing startups in various other fields, including agriculture.

"We have started an Agriculture Grand Challenge. We invite more youngsters to ideate on how to transform our agriculture sector," he added.

The government has launched the Start-up India Action Plan to promote budding entrepreneurs in the country. The plan is aimed at giving incentives such as tax holiday, inspector raj-free regime and capital gains tax exemption, Modi said.

"Our start-ups are growth engines. Today's big companies were startups at some point. I urge the people of India to keep innovating," he added.

He also said that the youth in India is now creating jobs and the government is committed to harnessing the demographic dividend.

Commenting on the issue of fund availability for startups, Modi said the government has created a Rs 10,000 crore Fund of Funds. He also said startups can sell their products to the government and it has eased public procurement norms for them.

India has distinguished itself in the global startup ecosystem, the Prime Minister added.