Stars of New Bharat: How Are Startups Changing Job Creation in India?

Have you ever wondered how startups impact the job market in India? What role do they play in boosting the economy and providing employment opportunities? As the government continues to promote entrepreneurial initiatives, the latest data reveals impressive growth and substantial job creation by startups across the nation. Let's unravel the data with TICE.News.

Over 1.4 Lakh Startups Registered

On Monday, July 29, the government announced in Parliament that more than 1.4 lakh startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT) have generated over 15.5 lakh direct jobs across the country. This development highlights the significant contribution of the startup ecosystem to India's employment landscape.

Jayant Chaudhary, Minister of State (Independent Charge) for Skill Development and Entrepreneurship, disclosed these figures in response to a question posed by Bharatiya Janata Party (BJP) Member of Parliament (MP) Dilip Saikia. Chaudhary highlighted the success of the Startup India initiative, which has led to the recognition of 1,40,803 startups as of June 30, 2024. These startups have reported the creation of over 15.5 lakh direct jobs, showcasing the government's efforts to foster a conducive environment for entrepreneurial ventures.

Employment in Rural Areas

Chaudhary further elaborated that 3.02 lakh startups, supported under the Start-up Village Entrepreneurship Programme, have contributed to generating approximately 6.2 lakh jobs in rural India. This initiative aims to promote entrepreneurship at the grassroots level, encouraging innovation and job creation in rural communities. Additionally, startups incubated under the Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 scheme have created employment for 8,556 individuals, further emphasizing the government's commitment to nurturing entrepreneurial talent across diverse sectors.

Focus on Agriculture and Allied Sectors

The minister noted that 1,235 DPIIT-recognized startups have been supported under the TIDE 2.0 scheme, with 1,708 of these startups operating in the agriculture and allied sectors. This effort aligns with the recent Economic Survey, which indicated that 1.17 lakh DPIIT-recognized startups created over 12.42 lakh direct jobs by 2023, having a significant economic impact. The focus on agriculture and allied sectors highlights the potential of startups to revolutionize traditional industries and drive economic growth.

Government Initiatives to Boost Startups

Over the past few years, the government has undertaken several initiatives to bolster the country's startup ecosystem, fostering job and value creation. These efforts are designed to address the unique challenges faced by startups and provide them with the necessary support to thrive. In her recent budget speech, Finance Minister Nirmala Sitharaman addressed long-standing demands from the startup community, such as the abolition of the angel tax, which was seen as a major impediment to investment.

New Budget Provisions for Startups

Sitharaman announced several measures to further support the startup ecosystem. These include the creation of a ₹1,000 crore venture capital fund for the space economy, which aims to stimulate innovation in the burgeoning space sector. Additionally, the reduction in tax deducted at source (TDS) for e-commerce platforms from 1% to 0.1% is expected to ease the financial burden on small businesses. The establishment of e-commerce export hubs under a public-private partnership (PPP) model is another step towards enhancing the global competitiveness of Indian startups.

India's Growing Startup Ecosystem

India has established itself as the third-largest startup ecosystem globally, home to 116 unicorns and 112 soonicorns. These high-growth companies are driving innovation and attracting significant investment, positioning India as a major player on the global stage. Notably, ride-hailing startup Rapido became the third unicorn of the year today, reflecting the dynamic and rapidly evolving nature of the Indian startup landscape. According to an Inc42 report, Indian startups have raised over $147 billion since 2014, underscoring the robust growth and potential of the sector.

The government's proactive approach and supportive measures continue to fuel the growth of startups, paving the way for increased job creation and economic development in India.

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