Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India

Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India

SUMMARY

The overall number of recognised startups has reached 66,810 in FY22

More than 3,300 DPIIT recognised startups are working in climate action sectors

Additionally, more than 4,500 startups have been recognised in sectors relating to emerging technologies

Nearly 50% of the recognised startups in India are now from Tier 2 and 3 cities, the Ministry of Commerce and Industry informed Rajya Sabha on Friday. A big testament to the fact that the startup revolution in India has reached all corners of the country, moving beyond Bengaluru, Mumbai and National Capital Region (NCR). Understandably, the market outside metro cities has started catching up with tech adoption and spending.

At a virtual event organised by IIT-Madras, Union Minister Piyush Goyal said that the Centre is committed to supporting startups from smaller cities and towns via better incubation centres. Even he called on VC firms to mentor small town entrepreneurs and handhold them in manoeuvring issues, at another event. 

With state governments also taking proactive measures to encourage startup communities, now there is at least one recognised startup from every state and UT. Moreover, recognised startups are spread across more than 640 districts. 

Contributing to the Indian economy, the startups have reported the creation of more than 7 Lakh jobs with an average of 11 jobs created by a recognised startup. In addition, the overall number of recognised startups has reached 66,810 in FY22, as on March 28, 2022.

“Indian startups are supportive of transformation of Indian businesses by fostering innovation across various sectors. DPIIT has recognised Startups which are spread across 56 diversified sectors,” the Ministry of Commerce and Industry said.

Interestingly, more than 3,300 DPIIT recognised startups are working in climate action sectors providing solutions through renewable energy and green technology. Additionally, more than 4,500 startups have been recognised in sectors relating to emerging technologies such as Internet of Things (IoT), robotics, artificial intelligence, and analytics, among others.

The government has been working on multiple programmes to support startups in clean energy and emerging technologies. The Clean Energy International Incubation Centre (CEIIC) has been set up for promoting innovations in the clean energy space by supporting startups. According to the ministry, CEIIC has supported 25 startups in a wide range of clean energy Innovations.

NIDHI Technology Business Incubator (NIDHI TBI) and NIDHI Seed Support Program (NIDHI SSP) have also been supporting startups in various emerging technology domains including clean energy. On the other hand, The Atal Innovation Mission (AIM) of the Government, has also supported more than 174 startups in cleantech innovations and emerging technologies. 

As per Inc42 analysis, 1,436 startups were launched in the country in 2021 and $42 Bn funding was raised by Indian startups in 2021. Moreover, new startup launches in India also increased by 15% in 2021. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India-Inc42 Media
Tier 2 & 3 Cities Now Account For Nearly 50% Of Recognised Startups In India-Inc42 Media
You’re in Good company