Over 5.7 lakh jobs created by nearly 52,000 recognized startups

India’s startup ecosystem appears to be strengthening in the aftermath of the economic repercussions of the COVID-19 pandemic. On Wednesday, Minister of State for Commerce and Industry Som Parkash told the Lok Sabha that a total of 52,391 entities have been recognized by Department for Promotion of Industry and Internal Trade (DPIIT) as of July 14 this year. Notably, India has the third-largest startup ecosystem in the world.

Furthermore, these startups have created more than 5.7 lakh jobs across the country. Som Parkash stated these figures in a written reply to a query raised by BJP MP Manoj Kishorbhai Kotak on the number of direct and indirect jobs created by startups in the last three years as well as initiatives taken by the government to promote startups in India.

“As of 14th July 2021, there are 53 unicorns currently in India, with a tentative valuation of Rs 14 lakh crore. More than 5.7 jobs have been created by over 50,000 startups,” the minister said in his reply.

Government Initiatives

He added that the Modi government launched the Startup India initiative in 2016 with the aim of supporting entrepreneurs and building a robust startup ecosystem in the country. In addition, PM Modi announced the Rs 1,000-crore-Startup India Seed Fund earlier this year to assist emerging entrepreneurs and startups and diversify the country’s business ecosystem.

“The government is working in actionable plans to promote ease of doing business for startups, the greater role of technology in executing various reforms, building capacities of stakeholders, and enabling a digital Aatmanirbhar Bharat,” the minister added.

These plans are being chalked out under the Startup India: The Way Ahead initiative launched in line with the fifth anniversary of the Startup India program

Growing startup environment

As per reports, the Indian startup funding touched $10.15 billion in the first half of this year, compared to $9.94 billion raised throughout the year 2020. According to a report by the India CSR Network, at least 16 startups achieved the unicorn (startups with a valuation of over $1 billion) status in the first six months of 2021, while around 500 unique startup deals were witnessed.

With the increasing use of digital technology and internet access across the country, the number of new startups is expected to grow in the remaining months of 20201. Reportedly, approximately 150 investment deals from China worth over $2 billion are also stuck in the pipeline amid the ongoing diplomatic clashes between New Delhi and Beijing that erupted in May last year.