Govt recognises over 55,200 entities as startups in 2025-26

• The government has recognised over 55,200 entities as startups during the financial year 2025-26.

• It is the highest number of startups recognised in a single year since the launch of the Startup India initiative in 2016.

• The number of startups recognized increased by 51.6 per cent year-on-year in FY 2025-26 compared to FY 2024-25, while direct jobs created rose by 36.1 per cent during the same period.

• Patent filings increased from over 2,850 in 2024-25 to more than 4,480 in 2025-26.

• So far, the number of recognised startups has crossed 2.23 lakh as of March 31, 2026.

• These firms have generated more than 23.36 lakh direct jobs.

• Maharashtra, Karnataka, Uttar Pradesh, Delhi and Gujarat have emerged as leading regions in terms of the number of recognised startups and direct employment generation.

• The Startup India initiative was launched on January 16, 2016.

• National Startup Day is observed on January 16.

Revised Startup Framework

• In India, an entity can be referred to or recognised as a startup only if it has been granted official recognition by the Department for Promotion of Industry and Internal Trade (DPIIT), based on the eligibility criteria notified from time to time.

• An entity shall be considered a startup up to a period of 10 years from the date of incorporation/registration.

• An entity formed by splitting up or reconstruction of an existing business shall not be considered a startup.

• In February, the Indian government revised the startup definition, doubling the annual turnover threshold for recognition from Rs 100 crore to Rs 200 crore. 

• A new sub-category of ‘Deep Tech Startup’ has been introduced for entities working on cutting-edge and breakthrough technologies.

Schemes to boost startup ecosystem:

1) Fund of Funds for Startups (FFS): The Fund of Funds for Startups (FFS) is a flagship initiative of the DPIIT under the Startup India Action Plan and is managed by the Small Industries Development Bank of India (SIDBI). With a corpus of Rs 10,000 crore, the scheme supports SEBI-registered Alternative Investment Funds (AIFs), which in turn invest in startups, with the objective of expanding access to domestic risk capital and strengthening the entrepreneurial ecosystem. Under FFS, more than Rs. 7,000 crore has been disbursed to over 135 Alternative Investment Funds (AIFs) by the end of FY 2025-26, which have further invested more than Rs 26,900 crore in over 1,420 startups. Building on this, the government has notified Startup India Fund of Funds 2.0 with a corpus of Rs 10,000 crore.

2) Credit Guarantee Scheme for Startups: The Credit Guarantee Scheme for Startups is implemented for enabling collateral free loans to startups through eligible financial institutions. CGSS is operationalised by the National Credit Guarantee Trustee Company (NCGTC) Limited. It has been expanded in FY 2025-26 to enhance capital mobilisation by increasing the guarantee cover per borrower from Rs 10 crore to Rs 20 crore, enhancing the extent of guarantee cover, and reducing the annual guarantee fee for lenders in identified sectors. By the end of FY 2025-26, more than 410 loans amounting to over Rs 1,250 crore have been guaranteed.

3) Startup India Seed Fund Scheme (SISFS): With a corpus of Rs 945 crore, the Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for activities such as proof of concept, prototyping, product trials, market entry, and commercialisation. The scheme is overseen by an Expert Advisory Committee (EAC), which is responsible for its implementation, execution, and monitoring. The corpus of Rs 945 crore has been approved to more than 219 incubators to support early-stage startups under the scheme. These incubators have approved funding of over Rs 605 crore to more than 3,400 startups. The scheme has been extended to enable continued disbursement and completion of approved activities.

4) Startup India Hub: The Startup India Online Hub is a one-of-a-kind digital platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other. The Startup Hub operationalises this by connecting investors, mentors, and incubators with India’s aspiring entrepreneurs. It brings together funds, academic institutions, corporates, and government bodies.

5) States’ Startup Ranking Framework (SRF): The States’ Startup Ranking Framework (SRF) assesses states and Union Territories based on their startup-friendly policies and implementation, fostering competitive federalism to strengthen India’s entrepreneurial ecosystem. Under the framework, states and UTs are classified into categories such as Best Performers, Top Performers, Leaders, Aspiring Leaders, and Emerging Startup Ecosystems, encouraging healthy competition and continuous improvement in startup governance.

6) National Mentorship Portal (MAARG): The Mentorship, Advisory, Assistance, Resilience, and Growth (MAARG) program has been developed to provide startups across the country with easy access to mentorship. By connecting entrepreneurs with experienced mentors, the portal aims to support startup growth, offer strategic guidance, and strengthen the overall entrepreneurial ecosystem nationwide.

7) Startup India Investor Connect Portal: Developed in collaboration with SIDBI, the Startup India Investor Connect Portal is a digital platform that connects startups with venture capital funds and investors, with a particular focus on early-stage ventures. The platform enables entrepreneurs to reach multiple investors through a single application and pitch their ideas efficiently.

(The author is a trainer for Civil Services aspirants.)