India’s Startup Ecosystem: A Decade of Expansion
IN NEWS – India’s Startup Ecosystem: A Decade of Expansion
ANALYSIS
1. India’s Position in the Global Startup Landscape
- India has emerged as the third-largest startup ecosystem globally.
- As of 31 December 2024, a total of 1.57 lakh DPIIT-recognised startups exist across the country.
- More than 100 unicorns signify strong innovation capacity and investor confidence.
- Notably, 51% of startups originate from Tier II and III cities, reflecting decentralisation of entrepreneurship.
- Major hubs: Bengaluru, Hyderabad, Mumbai, Delhi-NCR.
2. Impact of Startup India Initiative
- Launched on 16 January 2016, Startup India aims to promote innovation, design, and market creation.
- Recognised startups grew from 502 (2016) to 1,57,706 (2024).
- 17.28 lakh direct jobscreated as of December 2024.
- IT Services: 2.10 lakh jobs
- Healthcare & Lifesciences: 1.51 lakh jobs
- Professional & Commercial Services: 96,474 jobs
- 75,935 startups reported having at least one woman director—indicating rising women’s entrepreneurship.
- Improvements in Ease of Doing Business, self-certification, and tax exemptions for 3 years support early-stage ventures.
3. Startup India Seed Fund Scheme (SISFS)
- Launched in 2021, with a ₹945 crore corpus.
- Supports startups at proof-of-concept, prototype, product trials, and market entry stages.
- Oversight: Experts Advisory Committee (EAC).
- Progress as of December 2024:
- 213 incubators approved.
- 2,622 startups funded, receiving ₹467.75 crore.
4. Fund of Funds for Startups (FFS)
- Initiated in June 2016, with a ₹10,000 crore corpus.
- Managed by SIDBI, funds SEBI-registered AIFs.
- Progress:
- DPIIT committed ₹6,886 crore to SIDBI.
- SIDBI committed ₹11,687 crore to AIFs (as of December 2024).
- Catalysed ₹21,276 crore investment in 1,173 startups.
5. Credit Guarantee Scheme for Startups (CGSS)
- Provides credit guarantees to recognised startups via banks, NBFCs, and Venture Debt Funds.
- Implemented by NCGTC.
- As of 3 January 2025:
- 260 loans worth ₹604.16 crore guaranteed for 209 startups.
- Includes ₹27.04 crore support to 17 women-led startups.
6. Atal Innovation Mission (AIM)
- Launched in 2016 by NITI Aayog to strengthen school-level and institutional innovation culture.
- Progress:
- 10,000 Atal Tinkering Labs established across India.
- 3,556 startups incubated in 72 AICs, creating 41,965 jobs (as of 18 December 2024).
- Focus areas: School innovation, incubation centres, community innovation, and national innovation challenges.
7. MeitY Startup Hub (MSH)
- Supports technological innovation, incubation, and knowledge sharing.
- India has 30,000+ tech startups, remaining the third-largest tech startup ecosystem.
- Progress:
- 5,310+ startups, 495+ incubators, 328+ labs connected through MSH.
NECESSARY STATIC PART
- DPIIT-recognised startups (2024): 1,57,706.
- Jobs created: 17.28 lakh.
- Women-led recognised startups: 75,935.
- SISFS corpus: ₹945 crore, beneficiaries: 2,622 startups.
- FFS corpus: ₹10,000 crore, commitments via SIDBI: ₹11,687 crore.
- CGSS: 260 loans, ₹604.16 crore, 209 startups supported.
- AIM: 10,000 ATLs, 3,556 startups, 41,965 jobs.
- MSH ecosystem: 5,310+ startups, 495+ incubators, 328+ labs.
