Startup India Momentum Peaks: DPIIT Nears Two Lakh Officially Recognised Startups

Widespread Job Creation, More Women Founders, and Pan-India Reach

The recognised startups have generated over 21 lakh direct jobs, a significant contribution to the country’s employment ecosystem. Many of these opportunities come from sectors like technology, retail, manufacturing, and services.

Another important outcome is increased women’s participation, with nearly half of all recognised startups reporting at least one woman founder, partner, or director, a sign of expanding gender diversity in entrepreneurship.

The initiative’s impact is geographically widespread too: startups are now present in every state and union territory, including Tier-2 and Tier-3 cities that were previously not considered startup hubs. This shift shows how the initiative has helped decentralise innovation beyond metro cities.

Startup Closures and What They Indicate About the Ecosystem

Out of the total recognised startups, over 6,000 have been marked as closed, dissolved, or struck off by the Ministry of Corporate Affairs.

However, the government has clarified that this number does not indicate any sudden rise in shutdowns.

Instead, these closures reflect the natural ebb and flow of the business cycle: startups shutting down due to issues with market fit, funding gaps, operational challenges, or strategic pivots. In mature startup ecosystems worldwide, such churn is normal and often seen as a sign of experimentation and risk-taking. India’s numbers similarly show both high entrepreneurial activity and the reality that not all ventures succeed, but the overall ecosystem continues to expand year after year.