Economic Survey 2024: 12.42 lakh direct jobs created by over 1.1 DPIIT-recognised startups

Budget 2024: The Economic Survey 2023-24 stated that there were 117,254 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), up from 300 in 2016. It further noted that these startups created 12.42 lakh direct jobs, generating significant economic impact.

The survey further noted that the number of Indian technology startups has gone up to 31,000 in 2023 from 2,000 in 2014, all due to the Centre-led Start-up India Initiative and start-up hubs across ministries and departments of the Government of India.

“The Start-up India initiative helps connect the Indian start-up ecosystem to global start-up ecosystems. Start-up India has engaged in several bilateral and multilateral forums to build cross-border knowledge exchange systems and facilitate cross-border incubation and acceleration programs,” the survey stated.

The survey noted that there are over 13,000 DPIIT-recognised startups in artificial intelligence, the Internet of Things (IoT), robotics, and nanotechnology as of the end of the financial year 2023-24 (FY24).

“The strength of the Indian tech start-up ecosystem lies in its large pool of start-ups, unicorns, and ability to scale. With 16 per cent of the world's AI talent, India positions itself as an innovation hub, showcasing rapid adoption of AI skills,” the survey stated.

The survey further said that over 45% of these startups have come up in Tier 2-3 cities and more than 47% of them have at least one woman director. Moreover, 387 women-led startups are working in the agriculture and allied sectors. The Economic Survey highlighted that startups have filed more than 12,000 patent applications from 2016 to March 2024.

Startup funding

The survey noted the importance of early-stage funding support for the country’s startups and outlined initiatives that have strengthened domestic capital flow under the Start-up India Initiative.

Under Fund of Funds for startups, more than Rs 10,500 crores have been committed to more than 135 Alternative Investment Funds, which invested more than Rs 18,000 crores in startups by the end of FY24.

“It has not only made capital available for start-ups at an early stage, seed stage, and growth stage but also played a catalytic role in facilitating the raising of domestic capital, reducing dependence on foreign capital, and encouraging homegrown and new venture capital funds,” the survey said.

The government also launched the Start-up India Seed Fund Scheme in 2021, aiming to provide financial assistance to start-ups for proof of concept, prototype development, product trials, market-entry, and commercialisation.