More Than 12.42 Lakh Direct Jobs Created by 1,17,254 DPIIT-Recognized Startups

Nitin Konde, Apoorva Bajj

Jul 23, 2024 — 3 min read

More Than 12.42 Lakh Direct Jobs Created by 1,17,254 DPIIT-Recognized Startups

Today, on the first day of the budget session, Nirmala Sitharaman, the union finance minister, presented the Economic Survey 2023-24 to the house. Tomorrow, she will present the Union Budget 2024-25.

In it, the Modi government laid out its plans to improve India's startup scene and tracked the progress of the sector over time.

Interventions such as the Bharat Startup Knowledge Access Registry, the Anusandhan National Research Foundation (ANRF) bill 2023, and the notification of Patent Rules 2024 all contributed to the expansion of India's startup ecosystem.

Multi-Sector Growth in DPIIT-Recognized Startups

A total of 1,17,254 startups were recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as of 31 December 2023, up from 300 in 2016 (as reported in the Economic Survey), and these businesses have allegedly generated more than 12.42 lakh direct employment opportunities.

The government's ongoing initiatives, including "simplification and handholding," "funding support and incentives," and "industry academia partnership and incubation," are believed to be responsible for the significant increase in the figures.

There were about 2,000 tech startups in India in 2014, but by 2023, that number had jumped to about 31,000. 387 of the 1,000 agritech startups in the agricultural and related industries were founded by women. Over 13,000 AI, nanotech, and robotics startups recognised by DPIIT were also highlighted, showcasing the rise of deep tech in India. There was an emphasis on the growth of mental health startups as well.

It goes on to say that over half of all acknowledged startups hail from India's tier 2 or 3 cities, and that over half of those have a female director, a sign of gender inclusion. Stand-Up India has 77.7 percent female beneficiaries, while the PM Mudra Yojana has approximately 68% female beneficiaries.

Financial Support and Patents

According to the survey, by the end of FY24, more than 135 Alternate Investment Funds had invested about INR 18,000 crore in startups, with over INR 10,500 crore allocated under the Fund of Funds for startups.

According to the report, between 2016 and March 2024, startups submitted over 12,000 patent applications, showcasing their commitment to innovation and its protection. The announcement of patent rules, 2024, which streamline the process of acquiring and managing patents, has further strengthened this.

Factors Boosting Startup Culture in India

Startups have been on the rise in many different industries, and this is due to a number of causes. A rise in internet penetration and shifts in consumer habits created an ideal environment for new retail IT companies to emerge. Notable events, such as the launch of UPI, sparked a boom in the Banking, Financial Services and Insurance (BFSI) sector's startup activity beginning in 2016. There have been 21 unicorns since 2014 in the Software as a Service (SaaS) industry, driven by the need for efficient and scalable cloud solutions. Due to the surge in demand for tele-consulting and remote learning solutions, industries such as HealthTech and EdTech experienced rapid growth during the COVID-19 pandemic.

According to National Association of Software and Service Companies (NASSCOM), India's IT startup environment has outperformed both the United States and the United Kingdom, placing it third internationally. The capacity to scale, a big number of startups, and the presence of unicorns are the hallmarks of India's tech startup ecosystem. India showcases its position as an innovation hub by rapidly adopting AI talents; it has 16% of the world's AI talent.