Gujarat witnesses 160% jump in startup registrations in last 2 yrs

The registration of startups in Gujarat has witnessed a jump of 160% in registration of startups in the last two years from 873 in 2020 to 2,276 in 2022. Sector-wise, the highest number of 7,587 startups have been registered in IT Services, followed by Healthcare and Lifesciences and Education.

At the national level, registration of start-ups grew by 83 per cent to 26,542 in 2022 from 14,498 in 2020.

The Union Minister of State for Commerce and Industry Som Parkash in the Rajya Sabha, while replying to a question raised by YSRC MP Parimal Nathwani, said at the national level, the number of entities recognized as startups by the Department for Promotion of Industry and Internal Trade (DPIIT) has gone up from 14,498 in 2020 to 26,542 in 2022.

The number of entities recognized as Start-ups by DPIIT in the state of Gujarat were 873 in 2020, 1,703 in 2021 and 2,276 in 2022.

A total of 592 entities from Gujarat have been recognised as startups upto 28 February in 2023, taking the total number of startups to 5,444. 

At national level, Gujarat has ranked fifth amongst all states in terms of number of startups recognized by the DPIIT.

AP sees 65% jump in startup registrations

According to the data provided by the Centre, the number of entities recognized as startups by the DPIIT in Andhra Pradesh was 231 in 2020, 296 in 2021 and 382 in 2022, while 110 entities from AP have been recognized as startups up to February 28, 2023, thus taking the total number of entities recognized as startups to 1,019.

Since the launch of the Startup India initiative in 2016, the DPIIT has recognized 92,683 entities as startups as on February 28, 2023. 

In the last three years (from 2020-2022) and the current year (as on February 28, 2023), 67,223 entities have been recognized as startups by the DPIIT. 

Nathwani sought information about the number of startups registered in the country in the last three years and the current year, the number of startups that have turned unicorns during the same period and the steps taken/are being taken by the government to promote startup culture in the country.

Boosting Startup Ecosystem In The Country

The government is constantly undertaking various efforts to develop and grow the startup ecosystem in the country through the Startup India initiative. 

Flagship programmes like the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) help startups get to the next level by assisting them at various stages of their business cycle. Where they can obtain funding from angel investors or venture capitalists, as well as loans from commercial banks or financial institutions.

The Fund of Funds for Start-ups (FFS) and the Start-up India Seed Fund Scheme (SISFS), were launched under the Start-up India Initiative to provide funding at different stages of the start-up business cycle. Both schemes are implemented nationwide.

The FFS, which was established in June 2016 with a corpus of Rs 10,000 crore, aims to provide a much-needed boost to the Indian start-up ecosystem and facilitate access to domestic capital. The FFS does not directly invest in start-ups, but instead provides capital to SEBI-registered Alternative Investment Funds (AIFs) also known as daughter funds. These funds then invest in growing Indian start-ups through equity and equity-linked instruments.

The Small Industries Development Bank of India (SIDBI) is responsible for operating the FFS by selecting appropriate daughter funds and overseeing the disbursal of committed capital. AIFs supported under FFS are required to invest at least twice the amount committed under FFS in start-ups. The contribution to FFS will be spread over the 14th and 15th Finance Commission cycle based on the progress of implementation.