Rising Stars: 114,000 Startups Fuel Over 1.2 Million Jobs Nationally

In a remarkable display of startup dynamism in the country, India boasts over 1,14,000 startups dispersed across all 36 States and Union Territories, collectively contributing to the creation of more than 12 lakh jobs. 

“It is a remarkable achievement that more than 1,14,000 startups have been recognized by the Government which have reported creation of more than 12 lakh jobs with an average of 11 jobs created by each recognised startup. The DPIIT recognized startups are spread across all 36 States and UTs of the country,” Ministry of Commerce & Industry says in a statement.

The Startup India initiative, launched in 2016 by Prime Minister Narendra Modi, has played a pivotal role in transforming the country into a breeding ground for innovation and job creators.

The Ministry says that, “Several programs have been implemented over the years under the Startup India initiative to support entrepreneurs, build a robust startup ecosystem, and transform India into a country of job creators rather than job seekers.”

Investment Surge and Alternative Avenues

Alternative Investment Funds (AIFs) have played a significant role in fuelling the growth of startups, injecting Rs. 17,272 crores into 915 innovative ventures.

“Under the Fund of Funds for Startups (FFS) Scheme, the Government has committed about Rs. 10,229 crore to 129 Alternative Investment Funds (AIFs). A total of Rs. 17,272 crore has been invested by the AIFs in 915 startups. Under the Startup India Seed Fund Scheme (SISFS), a total sum of Rs. 747 crore has been approved to 192 incubators. Also, the selected incubators have approved a total of Rs. 291 crore to 1,579 startups.

The Government has also notified the establishment of the Credit Guarantee Scheme for Startups (CGSS) for providing credit guarantees to loans extended by Scheduled Commercial Banks, Non-Banking Financial Companies and AIFs. The Scheme has been operationalized on 1st April 2023,” says the Ministry release.

Onboarding Startups on GeM platform

More than 21,800 DPIIT recognised startups have been on-boarded on Government e-Marketplace (GeM) which have received over 2,43,000 orders from public entities, totalling Rs. 18,540 crores. GeM Startup Runway is a fast-track process for onboarding of startups on the GeM platform.

Creating a Global Narrative for Supporting Startups

Under India’s G20 Presidency in 2023, a Startup20 Engagement Group was institutionalised to create a global narrative for supporting startups and enabling synergies among startups, corporates, investors, innovation agencies and other key ecosystem stakeholders. The Startup20 Engagement Group in India’s G20 Presidency held four meetings in different regions of India.

In 2023, Startup India organised 3 regional and 2 international capacity building and exposure visits for officials from States/ UTs to interact with and learn from policy makers, incubators, and other ecosystem enablers in national and international startup ecosystems.

Ease of Doing Business: Decriminalization of Compliances

The government's commitment to fostering a business-friendly environment is evident through the decriminalization of over 3,600 compliances and the reduction of more than 41,000 compliances, collectively aimed at promoting the Ease of Doing Business.

Production Linked Incentive (PLI) Scheme

Aligned with the vision of 'Atmanirbhar Bharat,' the Production Linked Incentive (PLI) Scheme has emerged as a cornerstone for enhancing India's manufacturing capabilities and exports. With approvals granted to 746 applications and over Rs. 95,000 crore in investments reported, the PLI Scheme has stimulated production and sales, generating employment for over 6.4 lakh individuals.

Notably, the drones sector has witnessed a sevenfold increase in turnover, primarily driven by MSMEs and startups.

Startup India Initiative and Global Recognition

The Startup India initiative has evolved into a robust platform supporting entrepreneurship and innovation. Recognizing over 1,14,000 startups across all states and UTs, the initiative has facilitated job creation, with an average of 11 jobs per recognized startup. Further under the Fund of Funds for Startups (FFS) Scheme, Rs. 10,229 crore has been committed to 129 Alternative Investment Funds, boosting investments in 915 startups.

Promoting Ease of Doing Business and Innovation

India's commitment to simplifying processes and reducing compliance burden is evident through the National Single Window System (NSWS), which has processed over 2,55,000 approvals, streamlining G2B clearances across various Ministries/Departments. Additionally, the country's ascent in the Global Innovation Index, retaining the 40th rank in 2023 from 81st in 2015, underscores its dedication to fostering innovation.

Make in India 2.0: Focused Growth

The Make in India initiative has entered its 2.0 phase, concentrating on 27 sectors to propel India into a global manufacturing hub. Efforts are strategically channeled into 24 sub-sectors, such as electronics, textiles, medical devices, and drones, fostering coordinated growth and boosting India's competitive edge.

It must be noted that lots of new age startups are now into sectors like medical devices, drones and more.

Foreign Direct Investment (FDI) Surge

India's investor-friendly FDI policy has led to increased FDI inflow, reaching USD 33 billion in the first half of the financial year 2023-24. With FDI inflow witnessing substantial growth over the years, India stands out as a preferred destination for global investors.

Till May this year, the foreign investment in India’s startups stood at USD 4.58 billion. 

Intellectual Property Rights (IPR) Strengthening

India's focus on intellectual property rights is evident in its climb from 81st to 40th in the Global Innovation Index. The granting of patents has witnessed an eight-fold increase, reflecting the nation's commitment to fostering innovation.

India's economic landscape, fuelled by innovative startups, strategic initiatives, and a commitment to ease of doing business, shows the growth and development across various sector.

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