DPIIT Recognizes Over 1.4 Lakh Startups, Drives Innovation with Incentives

The Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 1.40 lakh entities as startups as of June 30, 2024. These startups are eligible for various incentives under the Startup India initiative launched in 2016. The initiative aims to foster innovation and investment in the startup ecosystem.

The Department for Promotion of Industry and Internal Trade (DPIIT) has identified 1.40 lakh entities as startups as of June 30 this year, according to a parliamentary statement on Friday.

These startups benefit from numerous incentives, including income tax exemptions under the Startup India action plan, announced in 2016.

The government launched the Startup India initiative on January 16, 2016, to foster a robust ecosystem supporting innovation and investment in the country's startup sector. As of June 30, 2024, DPIIT recognized 1,40,803 entities as startups, stated Minister of State for Commerce and Industry Jitin Prasad in a written reply to the Rajya Sabha.

Maharashtra tops with over 25,000 recognized startups, followed by Karnataka (15,019), Delhi (14,734), Uttar Pradesh (13,299), and Gujarat (11,436).

Under the Startup India Seed Fund Scheme, Rs 90.52 crore was approved to startups by incubators as of June 30, compared to Rs 186.19 crore in 2023. The number of startups selected by the incubators was 592, against 1,025 in 2023.

Additionally, under the Fund of Funds for Startups, Rs 805.86 crore was invested in startups by supported AIFs (Alternate Investment Funds) as of June 30, compared to Rs 3,366.48 crore in 2023. Ninety-six startups were supported by AIFs, down from 148 the previous year.

The Credit Guarantee Scheme for Startups approved Rs 154.60 crore in loans by member institutions as of June 30, compared to Rs 271.49 crore in 2023. Seventy-five loans were guaranteed, down from 107 last year.

Responding to another query, the minister noted that over 5.7 lakh sellers and service providers have joined the Open Network for Digital Commerce (ONDC), an initiative by DPIIT to promote open networks for the digital exchange of goods and services. ONDC has seen rapid growth from 1,000-plus transactions in January 2023 to over 9.9 million in June 2024, involving 71 seller applications, 22 buyer applications, and 16 logistics service providers.

(With inputs from agencies.)