DPIIT Recognises 1.97 Lakh Startups; Government Says No Rise in Closures
Under the FFS, managed by SIDBI with a corpus of ₹10,000 crore, funding commitments to SEBI-registered AIFs have continued at pace.
Funding support through FFS, SISFS and CGSS continues to expand
New Delhi, December 3: The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 1,97,692 entities as startups under the Startup India initiative as of October 31, 2025, marking a significant expansion of India’s innovation ecosystem. According to data shared by the Ministry of Corporate Affairs, 6,385 recognised startups have been categorised as closed (dissolved or struck off), but the government said it has not observed any increase in closures, attributing shutdowns largely to market dynamics and business viability.
DPIIT administers the recognition framework under the eligibility norms defined in the G.S.R. 127(E) notification of February 19, 2019. State-wise data on closures show that Maharashtra (1,200), Karnataka (845) and Delhi (737) account for the highest number of dissolved or struck-off startups, reflecting the concentration of entrepreneurial activity in these hubs. (Annexure-I)
Government Flags Steady Support Through Three Flagship Schemes
To strengthen early-stage and growth-stage innovation, the government continues to implement three flagship schemes:
• Fund of Funds for Startups (FFS)
• Startup India Seed Fund Scheme (SISFS)
• Credit Guarantee Scheme for Startups (CGSS)
Under the FFS, managed by SIDBI with a corpus of ₹10,000 crore, funding commitments to SEBI-registered AIFs have continued at pace. In 2025, ₹850 crore had been committed and ₹879.57 crore disbursed to AIFs by the end of October. Major beneficiary states include Maharashtra, Karnataka, Delhi and Gujarat, as reflected in Annexure-II.
The SISFS, launched in 2021 with a corpus of ₹945 crore, has been supporting incubators nationwide. In 2025 alone, ₹42.3 crore was approved and ₹94.6 crore disbursed to incubators across states such as Maharashtra, Telangana, Tamil Nadu and Gujarat.
Under CGSS, which enables collateral-free loans, ₹153.4 crore worth of loans were guaranteed in 2025 up to October. Gujarat, Maharashtra, Karnataka and Uttar Pradesh accounted for a significant share of these guarantees. (Annexure-IV)
Startup Closures Not a Trend, Says Centre
Responding to concerns over startup shutdowns, the Commerce & Industry Ministry clarified that closures are not indicative of a systemic issue, but are instead influenced by:
• business model viability,
• market alignment,
• domestic and global macroeconomic conditions,
• access to funding, and
• product-market fit.
Startup India Expands as an Economic Engine
With nearly two lakh officially recognised startups, India continues to strengthen its position as one of the world’s most dynamic innovation ecosystems. The government’s multi-tier support—capital infusion into AIFs, seed funding through incubators, and credit guarantees—aims to ensure that startups across sectors and states can access the financial backbone needed to scale.
The information was provided in a written reply by Minister of State for Commerce & Industry Jitin Prasada in the Lok Sabha on Tuesday.
