India Home To 1.4 Lakh Startups As Of June: Govt

India has over 1.4 Lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), said MoS for Ministry of Commerce and Industry Jitin Prasada.

In a written answer in the Rajya Sabha on Friday (July 26), Prasada said that the DPIIT has recognised 1,40,803 entities as startups as of June 30, 2024. 

Maharashtra led the list, with 25,044 startups, followed by Karnataka with 15,019 startups. While national capital Delhi is home to 14,734 startups, Uttar Pradesh and Gujarat have 13,299 and 11,436 startups, respectively.

At 16, Ladakh has the lowest number of startups. Tripura, Arunachal Pradesh, and Mizoram only have 123, 38, and 32 DPIIT-recognised startups, respectively.

The Centre has taken a number of steps over the last few years to promote startups in the country to foster innovation and create jobs. The government has launched schemes like Startup India, Startup India Seed Fund Scheme, Fund of Funds for Startups (FFS) Scheme, and Credit Guarantee Scheme for Startups over the past few years to give further impetus to the country’s startup ecosystem. 

Earlier this week, the Economic Survey said the government committed more than INR 10,500 Cr for alternative investment funds (AIFs) under the FFS scheme by the end of FY24, which resulted in investments of over INR 18,000 Cr in startups. 

On the back of these efforts, India currently has the third-largest startup ecosystem in the world. The country is home to 115 unicorns and 112 soonicorns, and the homegrown startups have raised over $147 Bn till date, as per an Inc42 report.

In another boost to the startup ecosystem, finance minister Nirmala Sitharaman announced the abolishment of the infamous angel tax in her Budget speech this week. This was a long-standing demand of the startups and the Centre’s move was applauded by the country’s startup ecosystem.

Meanwhile, the finance minister also announced setting up an INR 1,000 Cr venture fund for spacetech startups.