The Ministry of Commerce & Industry has recognised more than 55,200 startups during the financial year 2025–26, marking the highest annual addition since the launch of the Startup India initiative. Consequently, the total number of recognised startups in India has surpassed 2.23 lakh as of March 31, 2026. Collectively, these startups have generated over 23.36 lakh direct jobs, reflecting the sustained expansion of India’s startup ecosystem over the past decade.
The government launched the Startup India initiative in January 2016 to create a supportive environment for innovation, encourage investments, and promote entrepreneurship. Since then, the ecosystem has witnessed significant momentum. Notably, the number of recognised startups increased by 51.6% year-on-year in FY26 compared to FY25. At the same time, direct job creation grew by 36.1%, underscoring the sector’s growing contribution to employment and economic development.
Furthermore, startups have expanded across all states and Union Territories, thereby strengthening regional innovation. Among them, Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Gujarat have emerged as leading startup hubs in terms of both startup count and employment generation. “The Government continues to support startups through flagship schemes including the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS), providing financial support at various stages of the startup lifecycle,” the ministry added.
In addition, funding support through key government schemes has significantly scaled up. Under the Fund of Funds for Startups (FFS), the government has disbursed more than ₹7,000 crore to over 135 Alternative Investment Funds. These funds have subsequently invested over ₹26,900 crore into more than 1,420 startups, thereby amplifying capital flow into the ecosystem. Moreover, the government has announced a second fund with a corpus of ₹10,000 crore to further accelerate startup funding.
At the same time, the government has strengthened the Credit Guarantee Scheme for Startups to improve access to capital. “The Credit Guarantee Scheme for Startups has been expanded in FY 2025-26 to enhance capital mobilization 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,” the ministry said.
Similarly, under the Startup India Seed Fund Scheme, the government has selected 219 incubators and committed funding of ₹945 crore. These incubators have already approved over ₹605 crore for more than 3,400 startups, thereby enabling early-stage innovation and product development.
Moreover, startup-led innovation has contributed significantly to intellectual property creation. Startups have filed more than 19,400 patent applications, highlighting a strong focus on research and development. Patent filings have also increased sharply from over 2,850 in FY 2024–25 to more than 4,480 in FY 2025–26, indicating accelerated innovation activity.
In parallel, public procurement has played a crucial role in supporting startups. Through the Government e-Marketplace (GeM), more than 38,600 startups have onboarded, while both the volume and value of orders have risen during the year. This growth has enabled startups to access government contracts and scale their operations more effectively.
Overall, the ministry emphasized that these initiatives aim to sustain growth, improve funding accessibility, and strengthen India’s position as a global startup hub. As policy support continues to evolve, the Indian startup ecosystem is poised for further expansion and global competitiveness.
