•The government’s Start-up India mission launched by Prime Minister on 16 January 2016 appears to be firing on all cylinders with the number of recognised startups going up from 452 in 2016 to 75,000 in the 75th year of independence to now 84,012 as on 30 November 2022.
• Of the total recognised startups, about 12% are in the IT sector, 9% are in the healthcare and life sciences sector, 7% are in the education sector, 5% are in the professional and business services sector, and 5% are in the agricultural sector.
• A report by StrideOne puts the number of registered startups in India at more than 60,000 with 24,500 platforms estimated to have registered in 2022, against an estimated 20,000 in 2021. Registration of new startups is projected to grow at an annualized rate of 25% during 2022-27.
•This rise of startups has made India the third-largest startup ecosystem in the world and has significantly impacted the Indian economy showcasing the ability to contribute approximately 4-5% to the GDP of India.
•Around 49% of startups are currently from tier II and tier III cities showcasing the enormous potential of our nation’s youth.
•The Indian startup ecosystem has so far generated an astonishing 7.46 lakh jobs, a rise of 110% annually over the previous six year and job creation by startups is expected to grow at a rate of 24% annually in the 2022-27 period.
•Indian startups raised over $19 billion in funding in the first half of the calender year 2022—the highest in nine years—compared to USD 10 billion received in the first six months of 2021. Startup funding has been growing rapidly, with total funding raised having increased 42% annually, from 2016-21.
•The Fund of Funds for Startups, Startup India Seed Fund Scheme, and Credit Guarantee Scheme for Startups extend support to startups at various stages of their business cycle. The Startup India Seed Fund Scheme has been approved for four years starting from 2021-22.
•Total investment in agri-foodtech startups for India’s fiscal year FY 2022 stood at $4.6 billion, up 119% from FY2021. Deal volume also increased to 234 in FY2022 as compared to 189 deals in FY2021,” according to ‘India AgriFoodTech Investment Report 2022’.
•In the textile industry, which contributes about 2.3% to the GDP, over 28% of micro, small and medium enterprises (MSMEs) rely on startup platforms to source business opportunities and saw a 29% uptick in revenues after joining such platforms in 2022.
•Government data shows that as on 5 July 2022, among the leading states with DPIIT recognized startups are Maharashtra with 13,541, Delhi with 8,670, Karnataka with 8,902, Uttar Pradesh with 6,688, Gujarat with 4,942, Haryana with 3,995, Tamil Nadu with 3,965, Haryana with 3995, Telangana with 3,882, Kerala with 3,284, Madhya Pradesh with 3,284, West Bengal with 2,313, Rajasthan with 2303, Odisha with 1,330, Bihar with 1,238, Andhra Pradesh with 1135, Chhattisgarh with 786, Jharkhand with 675 and Assam with 605. Others like Jammu and Kashmir has 380, Chandigarh has 257, Goa has 308 and Himachal Pradesh has 205.
•Domestic initiatives like the Startup India Innovation Week, a seven day-long event in January 2022 have a critical role in boosting the start-ups with a platform that saw more than 1.5 lakh registrations, collaboration with 30 plus line ministries departments and declaration of 16 January as “National Startup Day”.
•More than 50 regulatory reforms have been undertaken by the Centre to enhance ease of doing business, raising capital and reducing compliance burden.
•A recognised startup now gets blockchain based recognition, selfcertification under 9 labour and 3 environment laws, relaxations in public procurement, access to stakeholders and programmes through startup India online hub.
– Nivedita Mukherjee