India now home to nearly 2 lakh startups amid robust reforms: Govt

Nearly two lakh startups have been formally recognised under the Startup India initiative, which was launched in 2016 to promote entrepreneurship and ease doing business, Union Minister Piyush Goyal said in a written reply to a question in Lok Sabha.

Along with rising numbers, startups have also emerged as a major source of job creation.

Till October 31, recognised startups have reported creating more than 21.11 lakh direct jobs.

Maharashtra remains a leading hub, with 34,444 recognised startups that have generated over 3.76 lakh jobs -- one of the highest in the country.

The government has also shared key achievements of the Startup India initiative, which include efforts to improve access to funding, simplify regulations and strengthen support systems.

Three major schemes -- Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS) -- are actively supporting ventures at different stages.

All funds under the FFS and SISFS have already been committed or approved, while 311 startup loans worth Rs 755.25 crore have been guaranteed under CGSS.

The government said it has been working to promote innovation among youth, improve market access and encourage participation from women entrepreneurs.

Nearly 48 per cent of all recognised startups have at least one woman director or partner.

Startups have also benefited from faster patent filing, with over 16,000 applications submitted after reforms in the IPR framework.

In another response to concerns about startup shutdowns, the government clarified that it has not observed any significant rise in closures.

As of October 31, a total of 6,385 recognised startups are categorised as closed -- either dissolved or struck off -- based on Ministry of Corporate Affairs data.

The ministry stated that shutdowns generally depend on business viability, market conditions and funding challenges, and not on any systemic issues.

Budget allocations under Startup India schemes for 2023–24, 2024–25 and 2025–26 have been released and are being utilised through the respective implementing agencies, supporting incubators, startups and financial institutions across States, the ministry said.