State of Startups: Challenges and Closures in Focus

The Department for Promotion of Industry and Internal Trade has recognized 2,12,283 startups, but 6,789 have closed. A significant number from IT, healthcare, and education sectors. Startups face challenges like market demands, economic conditions, and funding. Additionally, India's smartphone exports are notable, and product quality is monitored through Quality Control Orders.

A concerning number of startups in India, classified by the Department for Promotion of Industry and Internal Trade (DPIIT), have been shut down. Out of 2,12,283 recognized startups, 6,789 have closed, with IT services, healthcare, and education sectors most affected.

Factors influencing these closures include business model viability, market demands, and challenges in securing funding. Economic conditions also play a pivotal role. The IT services sector leads with 875 closures, followed by healthcare and life sciences with 553.

In a separate development, India's smartphone exports reached USD 21.37 billion between April and December 2025. Meanwhile, 142 Quality Control Orders have been enforced to assure product quality and safety, under the BIS Act, 2016.