India’s Thriving Startups: Maharashtra Tops the List

India’s Startup Ecosystem: A Closer Look at Growth and Support

Overview of India’s Startup Growth

India has officially recognized 1.40 lakh startups as of June 30, 2024, according to the Department for Promotion of Industry and Internal Trade (DPIIT). This milestone marks a significant achievement for the country’s entrepreneurial ecosystem, which has been bolstered by the Startup India Action Plan introduced in 2016. This plan provides various incentives, including income tax benefits, to encourage innovation and investment across the nation.

State-wise Distribution of Startups

Maharashtra leads the country with an impressive 25,044 startups, positioning itself as a hub of innovation and entrepreneurship. Karnataka follows with 15,019 startups, while Delhi has 14,734. Uttar Pradesh is not far behind, boasting 13,299 startups. Gujarat rounds out the top five with 11,436 startups. Other states also show significant contributions:

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Tamil Nadu: 9,238 startups
Haryana: 7,385 startups
Telangana: 7,336 startups
Kerala: 5,782 startups
West Bengal: 4,627 startups

States like Rajasthan, Madhya Pradesh, and Punjab also contribute notably, with Rajasthan having 4,960 startups, Madhya Pradesh 4,500, and Punjab 1,539. Other states and union territories, although with fewer numbers, are still making strides in the startup ecosystem.

Financial Support and Incentives for Startups

Financial backing plays a crucial role in the growth of startups. As of June 30, 2024, incubators have approved Rs 90.52 crore under the Startup India Seed Fund Scheme, down from Rs 186.19 crore in the previous year. This scheme selected 592 startups for support, a decrease from 1025 in 2023.

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The Fund of Funds for Startups (FFS) scheme has invested Rs 805.86 crore through supported Alternate Investment Funds (AIFs), compared to Rs 3,366.48 crore in 2023. This year, 96 startups benefited from these investments, down from 148 last year.

Additionally, the Credit Guarantee Scheme for Startups has guaranteed Rs 154.60 crore in loans, with 75 loans guaranteed, compared to Rs 271.49 crore and 107 loans in 2023. These financial mechanisms are crucial for fostering startup growth and innovation in India.

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Impact on Employment and Economy

The startup ecosystem’s impact on employment and the economy is significant. The Economic Survey for 2023-24 highlights that recognized startups have created over 12.42 lakh direct jobs, demonstrating their critical role in economic development. These numbers underscore the importance of supporting startups as they drive job creation and contribute to the country’s economic growth.