Startup India supports more than 2.5 lakh startups, generating over 25.42 lakh jobs: Govt

New Delhi, October 27 (IANS): The Department for Promotion of Industry and Internal Trade (DPIIT) on Tuesday said that a series of reforms aimed at reducing regulatory burdens and promoting ease of doing business have helped transform India's business environment from a permission-based system to a trust-based framework, driving growth in startups, investment, employment and digital service delivery.

According to the Commerce and Industry Ministry, DPIIT has recognised more than 2.5 lakh startups across over 770 districts and 56 sectors, which have collectively generated more than 25.42 lakh jobs.

Nearly 52 per cent of the recognised startups are based in non-metro cities, while 48 per cent have at least one woman director, the Ministry of Commerce & Industry said.

Government-backed funding initiatives have also expanded significantly. Under the Startup India Seed Fund Scheme, over Rs 775 crore has been approved for more than 4,100 startups through 244 incubators across 32 states and Union Territories.

The Fund of Funds for Startups, managed through SIDBI, has committed over Rs 12,600 crore to alternative investment funds, which in turn have invested more than Rs 28,000 crore in nearly 1,500 startups.

The Credit Guarantee Scheme for Startups has supported over 500 loans worth Rs 1,662 crore, benefiting startups that employ more than 41,000 people.

To further improve access to finance, the government has doubled the guarantee cover available to startups from Rs 10 crore to Rs 20 crore and reduced annual fees for priority sectors.

DPIIT said reforms in the startup sector include measures such as the abolition of angel tax, rationalisation of capital gains taxation for listed and unlisted shares and allowing institutional investors, including insurance companies and retirement funds, to invest in alternative investment funds. More than 4,400 startups have also received eligibility certification under Section 80-IAC.

Government procurement opportunities for startups have expanded sharply through the Government e-Marketplace (GeM). The number of startups registered on the platform has increased from fewer than 8,000 in 2021 to more than 43,000, with cumulative orders worth over Rs 68,000 crore placed by public buyers.

The ministry highlighted that regulatory compliance reforms have gathered pace, with nearly 48,000 compliances reduced across central ministries and states.

More than 22,000 compliances have been digitised, while thousands have been simplified, decriminalised or eliminated altogether. The Jan Vishwas Acts have decriminalised 900 provisions under central laws in an effort to promote ease of doing business.