As of December 31, 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) had awarded over 1.57 lakh certifications for the recognition of startups in India, solidifying India’s position as the world’s third-largest startup ecosystem.
More than 100 unicorns, startups in India are driving the country’s entrepreneurial scene, which is redefining innovation and opening up new opportunities in a variety of industries.
This change has been led by major cities like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR, but smaller cities are also gaining traction—more than 51% of startups in India come from Tier II and III cities.
The government has been instrumental in fostering this expansion and enabling the upcoming generation of business owners through programs like Startup India.
The Rise of DPIIT-Recognised Startups Creating Direct Jobs
As of December 31, 2024, there were 1,57,706 DPIIT-recognized startups, up from about 502 in 2016. As of December 31, 2024, startups in India had directly produced over 17.28 lakh employment, with the IT services sector accounting for the largest number at 2.10 lakh, followed by healthcare and life sciences at 1.51 lakh and professional and commercial services at 96,474.
Women-Led Startups
According to self-reported data from recognized startups, as of December 31, 2024, 75,935 of them have at least one female director, demonstrating the growing number of female entrepreneurs in India.
Ease of Doing Business & Tax Benefits
Startup operations have been streamlined by self-certification, simplified compliance, and three-year tax exemptions.
As of December 2024, 213 incubators have received approval under the Startup India Seed Fund Scheme (SISFS). As of December 2024, funding of INR 467.75 crore had supported 2,622 startups.
Other Key Schemes Include
With Startup India Seed Fund Scheme (SISFS) which was established in 2021 and assists startups at different phases, there were other successful schemes launched by the Government to back startups in India.
The Fund of Funds for startups (FFS) was established in June 2016 with a ?10,000 crore corpus with the goal of increasing entrepreneurs’ access to domestic funding.
Under SIDBI’s management, it provides capital to Alternative Investment Funds (AIFs) registered with SEBI, which subsequently use equity and equity-linked instruments to invest in startups.
Current Update of Atal Innovation Mission Success
The Atal Innovation Mission (AIM), started by NITI Aayog in 2016, seeks to encourage entrepreneurship and innovation throughout India.
It consists of programs like Atal Community Innovation Centers to assist underserved and unserved areas, Atal Tinkering Labs at the school level to encourage innovation, and Atal Incubation Centers to create a strong startup ecosystem.
Product and service innovations that have a national impact are the main focus of the Atal New India Challenges. Real-time MIS systems track every endeavor, and third parties evaluate them for ongoing development.
Under AIM, 10,000 Atal Tinkering Labs have been set up in Indian schools. Â As of December 18, 2024, 72 Atal Incubation Centers (AICs) had fostered 3,556 firms, generating 41,965 jobs.
Under MeitY Startup Hub (MSH), a focal point, guaranteeing collaborations between incubation facilities, The Ministry of Electronics and Information Technology’s Centers of Excellence on Emerging Technologies, and other platforms. The MeitY Startup Hub (MSH) program includes more than 328 labs, 495 incubators, and 5,310Â startups in India.
References: Press India Bureau
