Startups are prone to failures is a very high probability: Goyal
The minister also noted that the number of recognised startups has increased from 452 in 2016 to 84,012 as on November 30, 2022
Startups recognised by the DPITT have created over 8.4 Lakh jobs across the country
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
The success rate of startups in India is relatively higher than the rest of the world, Union Minister Piyush Goyal informed the Parliament on Wednesday.
“Startups are prone to failures is a very high probability. Though I must say, the success rate of startups in India is relatively higher than the rest of the world…,” Goyal said.
The minister also noted that the number of recognised startups in the country has increased to 84,012 as on November 30, 2022 from 452 in 2016.
Last week, Minister of Micro, Small, and Medium Enterprises Narayan Rane informed the LokSabha that the startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) have created over 8.4 Lakh jobs across the country.
Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat are the top five states and union territories (UTs) in terms of number of startups.
Indian startups are spread over 640 districts, with 45% of them being from Tier-2, 3 cities. In addition, the startups are spread across 56 sectors, including agriculture, biotechnology and chemicals, Rane said.
The Centre launched the ‘Startup India’ 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.
The Indian startup ecosystem has seen stupendous growth over the last few years, with the country currently home to 108 unicorns. Besides, India is also home to the third-largest startup ecosystem in the world. However, after a record-breaking 2021, the year 2022 has posed several challenges to startups in the country.
Due to macroeconomic headwinds, the overall funding raised by Indian startups has also declined in 2022. 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 raised $24 Bn in 2022 till November 29 as compared to $37 Bn in 2022.
The funding winter has resulted in many startups resorting to business restructuring and layoffs to cut costs. According to Inc42’s ‘Indian Startup Layoff Tracker’, 17,604 employees have been laid off by the startups so far in 2022.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.