India marks 1.4 lakh registered startups; Maharashtra ahead of Karnataka with 25,044 startups

As of June 30, 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 1.40 lakh entities as startups in India.

The recognition makes these startups eligible for various incentives, including income tax benefits under the Startup India Action Plan, which was introduced in 2016.

The initiative aims to create a robust ecosystem for nurturing innovation and startups and encouraging investments across the country.

Minister of State for Commerce and Industry Jitin Prasada highlighted in a written reply to the Rajya Sabha that "DPIIT has recognised 1,40,803 entities as startups as of 30th June 2024."

State-wise distribution of startups

Among the recognized startups, Maharashtra leads with over 25,044 entities. Karnataka follows with 15,019 startups, while Delhi has 14,734. Uttar Pradesh ranks fourth with 13,299 startups, closely followed by Gujarat with 11,436. 

Tamil Nadu has 9,238 startups, Haryana has 7,385, Telangana has 7,336, Kerala has 5,782, and West Bengal has 4,627 startups. Rajasthan has 4,960, Madhya Pradesh has 4,500, and Punjab has 1,539 startups. Bihar has 2,786 startups, Odisha has 2,484, and Andhra Pradesh has 2,252 startups.

Uttarakhand has 1,138, Chhattisgarh has 1,517, Assam has 1,318, and Jharkhand has 1,305 startups. Chandigarh has 489, Himachal Pradesh has 484, and Goa has 520 startups. Jammu and Kashmir has 855 startups, Puducherry has 152, Manipur has 151, and Tripura has 123 startups.

Meghalaya has 52, Nagaland has 66, Mizoram has 32, Arunachal Pradesh has 38, and Sikkim has 11 startups. Ladakh has 16, and Lakshadweep has 3 startups. Finally, Andaman and Nicobar Islands have 59 startups, while Dadra and Nagar Haveli and Daman and Diu have 53 startups.

Financial support and incentives

As of June 30, 2024, incubators had approved Rs 90.52 crore for startups under the Startup India Seed Fund Scheme, compared to Rs 186.19 crore in 2023. The number of startups selected by incubators under this scheme was 592, down from 1025 in 2023.

Additionally, the Fund of Funds for Startups (FFS) scheme has seen Rs 805.86 crore invested in startups by supported Alternate Investment Funds (AIFs) as of June 30, compared to Rs 3,366.48 crore in 2023.

The total number of startups supported by AIFs was 96 this year, down from 148 last year.

Furthermore, under the Credit Guarantee Scheme for Startups, Rs 154.60 crore in loans was guaranteed by member institutions as of June 30, compared to Rs 271.49 crore in 2023, with the number of guaranteed loans dropping from 107 to 75.

Impact on employment and economy

The Economic Survey for 2023-24 highlights the significant impact of the startup ecosystem on the economy. Recognized startups have created over 12.42 lakh direct jobs.

"These recognized startups are reported to have created over 12.42 lakh direct jobs creating significant economic impact," the survey states. This job creation underscores the critical role startups play in economic development.