New Delhi [India], February 13 : The Startup India initiative has officially recognised 2.07 lakh ventures across the country, resulting in the creation of 21.9 lakh direct jobs as of December 31, 2025. The government continues to expand its funding push through three flagship schemes designed to support businesses at various stages of their growth cycle.
As per a Ministry of Commerce & Industry release, the Department for Promotion of Industry and Internal Trade (DPIIT) recognised a total of 2,07,135 entities across all States and Union Territories. These startups contributed significantly to the national employment landscape by generating over 21.9 lakh direct jobs. Minister of State for the Ministry of Commerce & Industry, Jitin Prasada, provided these details in a written reply in the Rajya Sabha today.
The government implements the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS) to provide funding opportunities across various sectors. The FFS, operationalised by the Small Industries Development Bank of India (SIDBI), provides capital to SEBI-registered Alternative Investment Funds (AIFs). As of December 31, 2025, these AIFs invested Rs 25,547.98 crore in 1,371 selected startups across 29 States and Union Territories. These supported startups generated over 2 lakh jobs.
The SISFS, which began on April 1, 2021, provides financial assistance to seed-stage startups through incubators. The release noted that "selected incubators under the Scheme have approved funding of Rs 590.93 crore to 3,271 startups across 32 States/UTs."
These startups created over 22,600 jobs. CGSS enables debt funding by guaranteeing credit instruments through the National Credit Guarantee Trustee Company Limited. Since its inception in April 2023, 334 loans amounting to approximately Rs 808.18 crore received guarantees, with supported startups generating over 23,700 jobs.
Impact assessment studies for the FFS and SISFS indicated improvements in revenue and employment generation. The release highlighted that "supported startups have reported improvement in economic areas such as revenue and employment generation."
Beyond funding, the government focuses on easing regulatory compliance and providing tax benefits. Initiatives such as the Business Reform Action Plan and the Jan Vishwas exercise aim to reduce administrative costs and the compliance burden on businesses.
Tax reforms include profit-linked deductions under Section 80-IAC of the Income Tax Act 1961 and the deferral of Tax Deducted at Source regarding Employee Stock Option Plans. The government also allows relaxations for the carry forward of losses and Goods and Services Tax benefits for entrepreneurs in eligible incubators.
Additionally, the Ministry of Corporate Affairs provides specific compliance exemptions under the Companies Act 2013 to further support the startup ecosystem.