DPIIT-Recognised Startups Have Created Over 16.6 Lakh Direct Jobs: Piyush Goyal

SUMMARY

DPIIT-recognised startups generated more than 16.67 Mn direct jobs across 55 industries as of October 2024, with IT services leading at 204K jobs

The number of DPIIT-registered startups increased from 300 in 2016 to 117K in 2023, with 45% emerging from Tier I and II cities

The government launched multiple initiatives including FFS, SISFS and CGSS schemes, while establishing 51 TIDE 2.0 Incubation Centres to support startups

The government today (December 6) informed the Parliament that startups registered under the Department for Promotion of Industry and Internal Trade (DPIIT) have created over 16.67 Lakh direct jobs across more than 55 industries as of October 31, 2024.

In a written reply to the Rajya Sabha, commerce and industry minister Piyush Goyal said startups in the IT services created the highest number of direct jobs, 2.04 Lakh, followed by 1.47 Lakh direct jobs created by startups across healthcare and life sciences, 94,060 by startups in professional and commercial services, 90,414 by education startups, 88,702 by startups in the construction sector, 88,468 by food and beverage startups and 87,983 by human resource startups, among others.

According to the Economic Survey 2023-24 tabled by the union finance minister Nirmala Sitharaman in July, the number of DPIIT-recognised startups shot up to more than 1.17 Lakh in 2023, up from 300 in 2016, with 45% of startups emerging from Tier I and II cities.

These recognised startups have reportedly created more than 12.42 lakh direct jobs creating significant economic impact, the survey said.

The Centre has also launched Startup India initiative to groom the overall startup ecosystem. Under this initiative, there have been a number of flagship schemes which enabled the young businesses to expand to the stage of raising funds from investors or financial institutions.

Some of the schemes initiated by the Ministry of Electronics and Information Technology (MeitY) such as technology incubation and development of entrepreneurs (TIDE 2.0) has provided financial and technical support to startups. So far, it has established 51 TIDE 2.0 Incubation Centres.

Similarly, the government has launched various flagship schemes namely, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) to support the growing entrepreneurs.

The Centre has taken a number of steps over the last few years to give an impetus to the country’s startup ecosystem for job and value creation.

India boasts the third-largest startup ecosystem in the world and is home to 118 unicorns and 112 soonicorns.

According to Inc42’s latest data, Indian startups raised $8.7 Bn in funding in the first nine months of 2024, marking a 20% year-on-year increase from $7.2 Bn in the same period of 2023.