**Executive Summary**
The Indian government recognized a record-breaking 55,200 startups in FY 2025-26, bringing the total number of recognized entities to over 2.23 lakh as of March 31, 2026. This growth has resulted in the creation of more than 23.36 lakh direct jobs and a significant increase in patent filings and public procurement through the Government e-Marketplace (GeM). Key milestones include the notification of the ₹10,000 crore Startup India Fund of Funds 2.0 and the expansion of the Credit Guarantee Scheme for Startups.
**Key Points / Main Content**
**Startup Recognition and Employment**
* **Record Growth:** Startup recognition increased by 51.6% year-on-year in FY 2025-26, reaching the highest annual figure since the initiative's 2016 launch.
* **Job Creation:** Direct employment generated by startups rose by 36.1% in FY 2025-26, contributing to a cumulative total of 23.36 lakh jobs.
* **Regional Leadership:** Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Gujarat are the leading regions for startup recognition and employment generation.
* **Inclusivity:** Approximately 48% of recognized startups (over 1.07 lakh) have at least one woman director or partner.
**Financial Support and Funding Schemes**
* **Fund of Funds for Startups (FFS):** Over ₹7,000 crore has been disbursed to 135+ Alternative Investment Funds (AIFs), which in turn invested ₹26,900 crore into 1,420+ startups.
* **Fund of Funds 2.0:** The government has notified a new ₹10,000 crore corpus to build on the success of the initial FFS.
* **Startup India Seed Fund Scheme (SISFS):** The scheme has been extended to ensure continued disbursement; currently, ₹945 crore is committed through 219 selected incubators.
**Credit and Infrastructure Enhancements**
* **Credit Guarantee Scheme (CGSS):** The guarantee cover per borrower has doubled from ₹10 crore to ₹20 crore.
* **Lender Incentives:** The government has reduced annual guarantee fees for lenders in identified sectors to encourage capital mobilization.
* **IP Generation:** Startups filed over 4,480 patent applications in FY 2025-26, contributing to a total of 19,400+ applications since the initiative began.
**Public Procurement and Market Access**
* **GeM Integration:** Over 38,600 startups are onboarded on the Government e-Marketplace.
* **Order Value:** The total value of orders placed to startups via GeM reached ₹19,190+ crore in FY 2025-26, up from ₹14,103+ crore the previous year.
**Impact Analysis**
**Startups**
**Impact**
Startups benefit from increased access to early-stage capital via SISFS, larger credit limits under CGSS, and expanded opportunities in public procurement through GeM.
**Action Required**
Startups should seek recognition under the Startup India initiative, apply for expanded credit guarantees, and onboard onto the GeM platform to access government tenders.
**Investors and Alternative Investment Funds (AIFs)**
**Impact**
AIFs receive continued capital support through the disbursement of FFS 1.0 and the introduction of the ₹10,000 crore Fund of Funds 2.0.
**Action Required**
AIFs must manage the disbursement of committed funds and identify innovative startups for investment to meet the goals of FFS 2.0.
**Financial Institutions / Lenders**
**Impact**
Lenders face lower risks due to increased guarantee covers (up to ₹20 crore) and reduced annual guarantee fees in specific sectors.
**Action Required**
Lenders should increase credit flow to the startup ecosystem, particularly in identified priority sectors.
**Incubators**
**Impact**
Incubators gain stability through the extension of the Startup India Seed Fund Scheme, allowing them to complete approved funding activities.
**Action Required**
Incubators must continue the disbursement of committed funds and provide mentorship to help startups reach the next stage of the lifecycle.
Key Entities Referenced
Startup India initiative: The primary government program launched to create a robust ecosystem for innovation, providing recognition and incentives to startups in India.
Fund of Funds for Startups (FFS): A flagship financial scheme that disburses capital to Alternative Investment Funds (AIFs) to catalyze private investments into startups.
Credit Guarantee Scheme for Startups (CGSS): A scheme providing credit guarantee cover to lenders to facilitate collateral-free loans and enhance capital mobilization for recognized startups.
Startup India Seed Fund Scheme (SISFS): A program providing financial assistance to startups for proof of concept, prototype development, and market entry through selected incubators.
Government e-Marketplace (GeM): An online platform for public procurement that facilitates startup participation in government orders and tenders.
Ministry of Commerce & Industry
Government recognizes more than 55,200
startups during FY 2025-26, highest ever in a
single year since launch of Startup India initiative
Total recognized startups cross 2.23 lakh with over 23.36 lakh
jobs created; strong growth in funding, credit support and
public procurement
Posted On: 17 APR 2026 5:12PM by PIB Delhi
The Government has recognized more than 55,200 startups during Financial Year 2025-26, marking the
highest number of startups recognized in a single year since the launch of the Startup India initiative.
The Startup India initiative was launched on 16th January 2016 with an Action Plan comprising schemes
and incentives aimed at creating a robust ecosystem for nurturing innovation, encouraging private
investments, and supporting startups across the country. Various programmes are being implemented to
recognize, develop and empower startups.
Since inception, the number of recognized startups has crossed 2.23 lakh as on 31st March 2026,
generating more than 23.36 lakh direct jobs. More than 1.07 lakh recognized startups have at least one
woman director or partner, accounting for approximately 48% of total recognized startups.
The number of startups recognized increased by 51.6% year-on-year in FY 2025-26 compared to FY
2024-25, while direct jobs created rose by 36.1% during the same period.
Table 1: Startups and jobs spread across the country
Details FY 2024-25 FY 2025-26
Year-wise no. of entities 36,400+ 55,200+
recognized as startups
Year-wise no. of direct jobs 3,66,870+ 4,99,400+
created by recognized startups
Startups are now present across all States and Union Territories. Maharashtra, Karnataka, Uttar Pradesh,
Delhi and Gujarat have emerged as leading regions in terms of the number of recognized startups and
direct employment generation as on 31st March 2026.
Table 2: States and UTs with highest number of recognized startupsState / UT Entities recognized as startups Direct jobs created by
as on 31st March 2026 startups as on 31st March
2026
Maharashtra 38,660+ 4,13,900+
Karnataka 22,600+ 2,46,000+
Uttar Pradesh 21,960+ 2,11,580+
Delhi 21,120+ 2,36,640+
Gujarat 19,270+ 2,14,800+
Tamil Nadu 14,830+ 1,52,900
Telangana 12,520+ 1,36,570+
Haryana 11,620+ 1,39,600+
Kerala 8,620+ 74,130+
Rajasthan 8,100+ 83,100+
The Government continues to support startups through flagship schemes including the Fund of Funds for
Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups
(CGSS), providing financial support at various stages of the startup lifecycle.
Under FFS, more than Rs. 7,000 crore has been disbursed to over 135 Alternative Investment Funds
(AIFs) by the end of FY 2025-26, which have further invested more than Rs. 26,900 crore in over 1,420
startups. Building on this, the Government has notified Startup India Fund of Funds 2.0 with a corpus of
Rs. 10,000 crore.
Table 3: Extensive support under flagship schemes - FFS
Details FY 2024-25 FY 2025-26
Amount disbursed to AIFs to 980+ 1,039+
support startups under the FFS 1.0
(in Rs. crore)
The Credit Guarantee Scheme for Startups has been expanded in FY 2025-26 to enhance capital
mobilization by increasing the guarantee cover per borrower from Rs. 10 crore to Rs. 20 crore, enhancing
the extent of guarantee cover, and reducing the annual guarantee fee for lenders in identified sectors. By
the end of FY 2025-26, more than 410 loans amounting to over Rs. 1,250 crore have been guaranteed.
Table 4: Extensive support under flagship schemes - CGSSDetails FY 2024-25 FY 2025-26
No. of loans guaranteed to startups 130 135+
Amount of loans guaranteed to 305 600+
startups (in Rs. crore)
Under the Startup India Seed Fund Scheme, 219 incubators have been selected and the entire corpus of Rs.
945 crore has been committed. These incubators have approved funding of over Rs. 605 crore to more
than 3,400 startups. The scheme has been extended to enable continued disbursement and completion of
approved activities.
Startup-led innovation has also strengthened intellectual property generation, with more than 19,400
patent applications filed by startups. Patent filings increased from over 2,850 in FY 2024-25 to more than
4,480 in FY 2025-26.
Table 5: Increase in patent filing by startups
Details FY 2024-25 FY 2025-26
Patent applications filed by 2,850+ 4,480+
startups
The Government e-Marketplace (GeM) has further facilitated startup participation in public procurement.
More than 38,600 startups have been onboarded on the platform.
Table 6: Public procurement to support startup innovation
Details FY 2024-25 FY 2025-26
Total no. of startups onboarded 5,140+ 6,540+
on GeM
Total number of orders placed to 1,19,620+ 1,40,260+
startups on GeM
Total value of orders placed to 14,103+ 19,190+
startups on GeM (in Rs. crore)****
Abhishek Dayal/Abhijit Narayanan/Garima Singh
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