November 3, 2020
DPIIT has recognised over 39,000 startups in total so far, according to the Startup India portal
DPIIT has also committed to creating 2 million direct and indirect jobs within the startup industry by 2024
US$1.35 billion in funds has been allocated towards the startup industry, with an additional US$270 million for tech startups and as seed funding
The startup industry has seen sustained growth of 12-15 per cent over the past decade globally
Startup India, the flagship government scheme to support India’s startup ecosystem, has recorded a 57 per cent increase in the number of startups recognised by the government as of November 3, demonstrating the steady growth and investment potential of India as a startup hub. According to data from the official Startup India portal, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognised over 39,000 startups in total so far, as reported by the Financial Express. In addition, DPIIT has already committed to supporting the ecosystem by creating 2 million direct and indirect jobs in the next three years through the establishment of several incubators, accelerators, innovation zones and research parks.
Since its 2016 launch, the Startup India initiative has supported the rise of technology startups across industries, including the fintech, edtech, and consumer services industries. The DPIIT also intends to allocate US$1.35 billion in funds towards the startup industry, along with US$135 million for technology startups under the India Startup Fund and another US$135 million organised as seed funding.
Despite the COVID-19 pandemic, Indian startups have continued to grow in terms of financial and human capital compared to figures in previous years. According to a Nasscom report in 2019, India’s technology startup industry retained its position as the third largest globally, while data from April 2020 shows the inflow of US$2.5 billion in funding towards technology-led startups in Q1, indicating a 14 per cent increase in investment compared to the same period in 2019.
As a whole, the industry has seen sustained growth of 12-15 per cent over the past decade with Indian startups gaining market internationally as well as creating new demand in India’s untapped regions. Driven by favourable metrics, the Indian technology startup space is anticipated to expand four times over the next five years as the global tech startup industry, with a current cumulative valuation of around US$100 billion, continues its projected growth to US$390 billion by 2025.