India Crosses 200,000 Recognized Startups

India now has more than 200,000 startups recognized under the government’s Startup India framework, showed new data from the Department for Promotion of Industry and Internal Trade (DPIIT).

DPIIT’s latest update as on Thursday, 11 December, puts the total at 203,992 recognized startups, reflecting ventures that meet the government’s criteria on age, turnover and innovation.

The recognition framework is based on rules formalized in 2019, which define what qualifies as a startup for policy purposes.

To be eligible, a firm must be incorporated in India as a private limited company, limited liability partnership or partnership firm. It must be less than ten years old from the date of incorporation, and its annual turnover must not have exceeded ₹100 crore in any financial year since inception.

The entity must also be working on innovation, development or improvement of products, services or processes, with the potential for job creation or wealth generation; companies formed by splitting or reconstructing an existing business do not qualify.

The Ministry of Corporate Affairs told Parliament in November that 6,385 DPIIT-recognized startups have shut down this year, based on filings under the Companies Act.

Maharashtra reported the highest number of closures, followed by Karnataka and Delhi. Officials said the data does not indicate a rise in failures, noting that closures vary with market conditions, business models, funding cycles and operational decisions.

The Startup India program is supported by three central schemes that channel capital and risk support into early-stage ventures. The Fund of Funds for Startups, a ₹10,000 crore corpus managed by SIDBI, invests in SEBI-registered alternative investment funds that subsequently back startups.

Ministry data showed ₹879.57 crore has been released this year through this route. The Startup India Seed Fund Scheme, launched in 2021 with a ₹945 crore allocation, provides seed-stage support through approved incubators; disbursals stood at ₹153.4 crore by 31 October, including ₹95 crore released during 2025.

The Credit Guarantee Scheme for Startups, aimed at improving access to collateral-free credit, extends guarantees through eligible lending institutions.

Minister of State for Commerce and Industry Jitin Prasada said in a written reply that the increase in recognized startups, combined with steady disbursal across support schemes, reflects continued depth in the ecosystem even as the government monitors closures and funding conditions.