Over 84,000 DPIIT-Recognised Startups Have Generated 8.4 Lakh Jobs: Govt

SUMMARY

The DPIIT has recognised 84,102 entities as startups as on November 30

The startups are spread over 640 districts, with 45% of them being from Tier-2, 3 cities

The recognised startups are spread across 56 sectors, including agriculture, biotechnology and chemicals

The startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) have created over 8.4 Lakh jobs across the country, Minister of Micro, Small, and Medium Enterprises Narayan Rane informed the LokSabha on Thursday (December 8).

Earlier on Wednesday, Minister of State for Commerce and Industries Som Parkash informed the Parliament that the DPIIT has recognised 84,102 entities as startups as on November 30.

The startups are spread over 640 districts, with 45% of them being from Tier-2, 3 cities.

“As on 30th November 2022, 84,102 entities have been recognised as startups by the DPIIT,” Parkash said in a written reply to the Lok Sabha.

The DPIIT recognised 59,787 entities as startups during the five-year period from 2017 to 2021, the minister added.

The recognised startups are spread across 56 sectors, including agriculture, biotechnology and chemicals. Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat are the top five states and union territories (UTs) in terms of maximum number of recognised startups, the minister said.

The DPIIT recognises entities as startups under the ‘Startup India’ initiative. The Centre launched the initiative in 2016 to catalyse the startup ecosystem. It is credited as one of the major factors for the growth in the country’s startup ecosystem.

India is currently home to 108 startup unicorns. Although the startup ecosystem saw stupendous growth in the last five years, with 2021 being a historic year, the year 2022 has posed several challenges to startups in the country.

The ongoing funding winter has dried up the funding for Indian startups. The startups raised only $1.3 Bn in November 2022, a decline of 73% year-on-year (YoY) and over 15% month-on-month (MoM). In total, Indian startups have raised $24 Bn in 2022 till November 29 as against a whopping $37 Bn in 2022.

The sharp decline in funding has resulted in startups restructuring their businesses and resorting to layoffs and pay cuts to reduce expenses and increase their runway.

According to Inc42’s ‘Indian Startup Layoff Tracker’, 17,604 employees have been laid off by the startups so far in 2022. Foodtech giant Swiggy is the latest to fire employees, with the startup reportedly looking to layoff 250 employees.