**Executive Summary**
This document is a response to Unstarred Question No. 2738 in Lok Sabha, to be answered on December 16, 2025, regarding the registration of startups. It provides details on the number of registered startups that have closed since 2015, the reasons for their closure, and related job losses. The data on closed startups is current as of October 31, 2025, with data shared on November 11th 2025.
**Key Points / Main Content**
* **Startup India Initiative:**
* The Government launched the Startup India initiative on January 16, 2016, to foster innovation and investment.
* Entities recognized as ‘startups’ under this initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) must meet eligibility conditions prescribed under G.S.R. notification 127 (E) dated February 19, 2019.
* A total of 197,692 entities have been recognized as startups as of October 31, 2025.
* **Startup Closures:**
* As of October 31, 2025, 6,385 recognized startups are categorized as closed (i.e., dissolved/struck-off) according to the Ministry of Corporate Affairs (MCA).
* State/Union Territory (UT)-wise data on closed startups is detailed in Annexure-I.
* **Reasons for Closure:**
* Startup closures are generally influenced by factors like business model viability, market alignment, economic conditions, product/service nature, and funding ability.
* **Job Loss Data:**
* The Government does not centrally maintain data on job losses due to startup closures.
**Impact Analysis**
**Stakeholder: DPIIT (Department for Promotion of Industry and Internal Trade)**
* **Impact:** DPIIT is responsible for recognizing startups under the Startup India initiative.
* **Action Required:** Continue monitoring and supporting the startup ecosystem.
**Stakeholder: MCA (Ministry of Corporate Affairs)**
* **Impact:** Provides data on startup closures (dissolved/struck-off) for analysis.
* **Action Required:** Continue to provide data on startup closures.
**Stakeholder: Startups**
* **Impact:** Startups need to meet DPIIT’s eligibility conditions to be recognized and benefit from the Startup India initiative. They are susceptible to closure based on various business factors.
* **Action Required:** Startups should focus on business model viability, market alignment, securing funding, and adapting to economic conditions to minimize closure risks.
**Stakeholder: State/Union Territory Governments**
* **Impact:** State/UT governments need to use information provided on the performance of startups in their region to improve the local ecosystem.
* **Action Required:** State/UT Governments should review the performance of the startups registered in their respective regions.
**Stakeholder: General Public**
* **Impact:** Informs the general public on the impact and success of the Startup India initiative.
* **Action Required:** No immediate action required.
Key Entities Referenced
Startup India initiative: A Government of India initiative launched on 16th January 2016, to build a strong ecosystem for nurturing innovation, startups and encouraging investments.
Department for Promotion of Industry and Internal Trade (DPIIT): The department responsible for recognizing entities as 'startups' under the Startup India initiative.
Ministry of Commerce & Industry: The ministry to which the question about registered startups is addressed.
G.S.R. notification 127 (E): A government notification dated 19th February 2019, prescribing eligibility conditions for startups under the Startup India initiative.
Ministry of Corporate Affairs (MCA): The ministry that provides data on startups categorized as closed (i.e., dissolved/struck-off).
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 2738.
TO BE ANSWERED ON TUESDAY, THE 16TH DECEMBER, 2025.
REGISTRATION OF STARTUPS
2738. KM. SUDHA R:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) the number of registered startups that have ceased operations since within a
year and State-wise since 2015;
(b) the main reasons cited for their closure; and
(c) the number of jobs lost due to closure of these Startups, sector and State-
wise since 2015?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) to (c): The Government with an intent to build a strong ecosystem for nurturing
innovation, startups and encouraging investments launched the Startup India
initiative on 16th January 2016. As per eligibility conditions prescribed
under G.S.R. notification 127 (E) dated 19th February 2019, entities are
recognized as ‘startups’ under the Startup India initiative by the Department
for Promotion of Industry and Internal Trade (DPIIT). As of 31st October 2025,
a total of 1,97,692 entities have been recognised as startups.
As on 31st October 2025, 6,385 recognised startups are categorized as closed
(i.e., dissolved/struck-off), as per the Ministry of Corporate Affairs (MCA) [basis
data shared on 11th November 2025]. The State/Union Territory (UT)-wise
number of entities which are categorized as closed (i.e., dissolved/struck-off)
are placed as Annexure-I.
The startup closures that occur are generally influenced by factors such as the
viability of the business model, alignment with market demands, domestic and
global economic conditions, the nature of products and services developed, the
ability to attract funding, and other business specific considerations. The data
pertaining to job losses due to closure of startups is not centrally maintained by
the Government.
*******ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHA
UNSTARRED QUESTION NO. 2738 FOR ANSWER ON 16.12.2025.
The State/UT-wise number of entities which have been recognised as startups by DPIIT
categorized as closed (i.e., dissolved/struck-off) as per the Ministry of Corporate Affairs
(MCA) data as of 11th November 2025 are as under:
State/UT Number of entities recognised as startups
categorized as closed (i.e., dissolved/struck-off)
Andaman and Nicobar Islands 3
Andhra Pradesh 121
Arunachal Pradesh 1
Assam 59
Bihar 96
Chandigarh 27
Chhattisgarh 64
Delhi 737
Goa 29
Gujarat 348
Haryana 306
Himachal Pradesh 14
Jammu and Kashmir 41
Jharkhand 64
Karnataka 845
Kerala 241
Madhya Pradesh 180
Maharashtra 1,200
Manipur 10
Meghalaya 4
Mizoram 3
Nagaland 4
Odisha 117
Puducherry 7
Punjab 50
Rajasthan 211
Sikkim 1
Tamil Nadu 338
Telangana 368
Tripura 9
Uttar Pradesh 598
Uttarakhand 58
West Bengal 231
Total 6,385
*********