DPIIT recognises 1.40 lakh entities as startups as on June 30, 2024

The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 1.40 lakh entities as startups as of June 30 this year, the parliament was informed on Friday. These startups are eligible for a host of incentives, including income tax benefits under the Startup India action plan, which was announced in 2016.

The government, with the objective of building a strong ecosystem for nurturing innovation, startups and encouraging investments in the startup ecosystem of the country, had launched the Startup India initiative on 16th January 2016.

"DPIIT has recognised 1,40,803 entities as startups as on 30th June 2024," Minister of State for Commerce and Industry Jitin Prasdada said in a written reply to the Rajya Sabha. Out of this, over 25,000 are recognised in Maharashtra. It is followed by Karnataka (15,019), Delhi (14,734), Uttar Pradesh (13,299) and Gujarat (11,436).

The minister also informed in a different question that under the Startup India Seed Fund Scheme, Rs 90.52 crore was approved to startups by incubators as on June 30, as against Rs 186.19 crore in 2023. The total number of startups selected by the incubators under this scheme was 592 as against 1025 in 2023.

Similarly, under Fund of Funds for Startups, Rs 805.86 crore was invested in the startups by supported AIFs (Alternate Investment Funds) as on June 30, as against Rs 3,366.48 crore in 2023. The total number of startups supported by the AIFs was 96 as on June 30 as against 148 last year.

The minister added that under the Credit Guarantee Scheme for Startups, Rs 154.60 crore loan was guaranteed by the member institutions as on June 30 this year, as against Rs 271.49 crore in 2023. The total number of loans guaranteed to startup borrowers was 75 as on June 30, as against 107 last year.

Replying to another question, the minister said over 5.7 lakh sellers and service providers on the Open Network for Digital Commerce (ONDC). ONDC, a section 8 company, is an initiative of the DPIIT. It is aimed at promoting open networks for all aspects of the exchange of goods and services over digital or electronic networks. Notably, ONDC is not an app or a platform but rather a digital public infrastructure, built on a network model.

"ONDC has witnessed rapid expansion over a span of a year from 1,000 plus transactions in January 2023 to 9.9 million plus transactions in June 2024," he said adding that the network has 71 Seller applications, 22 buyer applications, and 16 logistics service providers.