It is not just the Indian stock market that is shooting up to stratospheric heights, the startup ecosystem is also seeing a surge, reaching 1.14 lakh recognised startups, as per figures released in Parliament.
In a statement presented in the Lok Sabha, Union Minister of State for Commerce and Industry, Som Parkash, unveiled key statistics on the startup landscape in India. The data revealed that the country has seen a significant upsurge in startups under the Startup India initiative.
India, with a total of 1.14 lakh recognized startups according to the Department for Promotion of Industry and Internal Trade (DPIIT), is experiencing a burgeoning entrepreneurial ecosystem. Maharashtra leads the nation with an impressive 20,695 startups, closely followed by Karnataka with 12,394 and Delhi with 12,301. Himachal Pradesh and Chandigarh contribute 397 and 398 startups, respectively.
Minister Som Parkash explained that the government assesses startup growth using specific indicators, including the total number of recognized startups, direct employment generation, and geographical coverage. Notably, the Startup India initiative has witnessed substantial progress, with recognized startups soaring from just over 300 in 2016 to 1.14 lakh by October 31, 2023. These startups have collectively created over 12.2 lakh direct jobs, spanning across every state, union territory, and 80% of the country’s districts.
The government has implemented various programs to bolster the startup ecosystem, including the Startup India Seed Fund Scheme (SISFS), which has received a sanction of Rs 945 crore for a four-year period starting from 2021-22. Additionally, the Fund of Funds for Startups (FFS) has a corpus of Rs 10,000 crore to cater to the funding needs of startups. DPIIT and Small Industries Development Bank of India (SIDBI) oversee FFS operations. The government has also established a credit guarantee scheme for startups, ensuring credit guarantees for loans extended to DPIIT-recognized startups by scheduled commercial banks, NBFCs, and venture debt funds.
Minister Som Parkash noted the challenges in accurately measuring startups and scale-ups’ success or failure rates in various phases. He emphasized that the diversity of new businesses makes it challenging to compile precise statistics, but the government’s robust initiatives are driving India’s startup ecosystem towards greater heights.
In summary, India’s startup ecosystem is flourishing, with the government’s Startup India initiative playing a pivotal role in fostering innovation, entrepreneurship, and job creation across the nation. The surge in recognized startups signifies a promising future for India’s economy and technological advancements.
