Indian Economy News

The Department for Promotion of Industry and Internal Trade Recognises 1,97,692 Startups Under Startup India Initiative

The Department for Promotion of Industry and Internal Trade (DPIIT) confirmed an increase in the amount of startups in India under the Startup India initiative. DPIIT certified a total of 1,97,692 entities as a startup in accordance with the criteria set forth by G.S.R Notification No. 127(E) dated February 19, 2019. This recognition reflects the significant growth of the innovation ecosystem within India and demonstrates how India has implemented a supportive framework for entrepreneurs and innovation in terms of government policy and service offerings. According to the Ministry of Corporate Affairs (MCA), as of November 11, 2025, out of those recognised as startups, 6,385 have been classified as closed (dissolved/struck-off) while the government indicated that there has not been an unusual increase in the number of closures. The closure of a business typically occurs for reasons such as having an unhealthy business model or not finding success in their chosen market, poor economic conditions, funding limitations, or operational issues.

To strengthen the startup ecosystem, the Government of India is implementing three key initiatives under Startup India. The Fund of Funds for Startups (FFS), managed by SIDBI, has a budget of Rs. 10,000 crore (US$ 1.11 billion) to support SEBI-registered Alternative Investment Funds (AIFs) investing in startups. The Startup India Seed Fund Scheme (SISFS), launched on April 1, 2021, offers Rs. 945 crore (US$ 112 million) for seed funding via approved incubators. Additionally, the Credit Guarantee Scheme for Startups (CGSS), effective since April 1, 2023, enables collateral-free loans through eligible financial institutions. These initiatives aim to enhance India’s entrepreneurial landscape by promoting innovation, improving access to finance, and supporting startups at various growth stages.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.