Startup India recognises 2.07 Lakh ventures; ₹25,547 cr invested through fund of funds

Ziraat Times News Desk

New Delhi, Feb 14: The Centre has recognised 2,07,135 startups across all States and Union Territories as of December 31, 2025, with these ventures generating over 21.9 lakh direct jobs, the government informed Parliament on Friday.

The figures were shared by Minister of State for Commerce and Industry Jitin Prasada in a written reply in the Rajya Sabha, outlining progress under the Startup India initiative.

Year-wise Growth

According to official data, startup recognition has grown steadily since 2016, when 502 entities were recognised. The number rose sharply in recent years, with 49,429 startups recognised in 2025 alone. Job creation has also expanded significantly, with 4,67,549 direct jobs reported in 2025.

Funding Through Flagship Schemes

Under Startup India, the government is implementing three flagship funding schemes:

• Fund of Funds for Startups (FFS): Operationalised by Small Industries Development Bank of India (SIDBI), the scheme channels capital to SEBI-registered Alternative Investment Funds (AIFs), which invest in startups. As of December 2025, AIFs supported under FFS have invested ₹25,547.98 crore in 1,371 startups across 29 States/UTs, generating over 2 lakh jobs.

• Startup India Seed Fund Scheme (SISFS): Launched in April 2021, the scheme has approved ₹590.93 crore for 3,271 startups across 32 States/UTs, resulting in over 22,600 jobs.

• Credit Guarantee Scheme for Startups (CGSS): Operational since April 2023 and implemented by the National Credit Guarantee Trustee Company Limited (NCGTC), the scheme has guaranteed 334 loans amounting to ₹808.18 crore across 20 States/UTs, supporting startups that have generated over 23,700 jobs.

Impact assessment studies of FFS and SISFS indicate improvements in revenue growth, employment generation and investor capacity building, with startups supported across diverse sectors.

Compliance and Tax Relief Measures

The government has also introduced several reforms to ease regulatory compliance and provide tax relief to startups.

Under the Ease of Doing Business framework, initiatives such as the Business Reform Action Plan (BRAP), Jan Vishwas, and reduction of compliance burdens have been undertaken to simplify procedures across ministries and states.

Startups are eligible for profit-linked tax deductions under Section 80-IAC of the Income Tax Act, 1961, deferment of Tax Deducted at Source (TDS) on Employee Stock Option Plans (ESOPs), relaxation in carry forward and set-off of losses, and GST-related relief measures.

Recent GST reforms include automated registration within three working days for low-risk applicants, quarterly return filing options for smaller taxpayers, faster electronic refunds, waiver of interest and penalties in certain legacy cases, and reduced pre-deposit requirements for appeals.

In addition, compliance relaxations under the Companies Act, 2013 allow startups exemptions related to board meetings, deposit acceptance norms, ESOP issuance to promoters, sweat equity limits and convertible notes, among others.

The government said the combined push through funding support, regulatory easing and tax incentives aims to strengthen India’s startup ecosystem and sustain job-led growth across sectors.