Executive Summary:
This document is an official response from the Ministry of Commerce and Industry to Lok Sabha Unstarred Question No. 4302 regarding the status and sustainability of startups in India. It provides data on the number of startups established, registered, and closed, including specific data for the State of Bihar, as of June 30, 2025, with additional data from the Ministry of Corporate Affairs on July 18, 2025. It also outlines the reasons for startup closures and the government's initiatives to ensure their sustainability.
Key Points / Main Content:
Startup Recognition and Registration:
* As of June 30, 2025, 180,683 entities have been recognized as startups by DPIIT.
* 138,031 startups were recognized in the last five financial years (2020-21 to 2024-25).
* In Bihar, 3,766 entities have been recognized as startups by DPIIT.
* 3,049 startups were recognized in Bihar in the last five financial years (2020-21 to 2024-25).
Startup Closures and Inactivity:
* 6,019 recognized startups are categorized as closed (dissolved/struck off) as of July 18, 2025.
* 59 recognized startups are categorized as inactive/dormant as of July 18, 2025.
* In Bihar, 95 recognized startups are categorized as closed, and none are inactive/dormant.
Reasons for Startup Closures:
* Closures are generally influenced by business model viability, market demand alignment, economic conditions, product/service nature, funding attraction, and business-specific factors.
Government Initiatives for Sustainability:
* The government has an action plan with schemes and incentives for creating a vibrant startup ecosystem.
* The Action Plan includes 19 action items across Simplification and handholding, Funding support and incentives and Industry-academia partnership and incubation.
* Key schemes like FFS, SISFS, and CGSS support startups at different stages.
* Periodic exercises and programs like States Startup Ranking, National Startup Awards, and Innovation Week are implemented.
* Ecosystem-led initiatives like Startup Mahakumbh are encouraged for networking and collaboration.
* Initiatives improve market access and enable public procurement.
* Digital platforms like the Startup India Hub portal and BHASKAR enable resource access and collaboration.
* Regulatory reforms and ecosystem development events/programs are in place.
Impact Analysis:
Startups:
*Impact:* Startups are directly affected by the government's recognition, support schemes, and regulatory environment. The data on closures and inactivity provides insights into the challenges faced by startups.
*Action Required:* Startups should leverage the available schemes, participate in ecosystem events, and utilize digital platforms for growth and sustainability.
Government (DPIIT, Ministry of Corporate Affairs):
*Impact:* The government is responsible for implementing and monitoring the startup ecosystem, providing support, and tracking startup performance.
*Action Required:* The government should continue to refine its policies and programs based on the data collected and feedback from the startup ecosystem.
State Governments (Specifically Bihar):
*Impact:* State governments are stakeholders in fostering local startup ecosystems and contributing to overall national growth.
*Action Required:* State governments should align their policies with national initiatives and create localized support systems for startups.
Investors:
*Impact:* Investors use this information to evaluate potential investment opportunities and assess the overall health of the startup ecosystem.
*Action Required:* Investors should consider the factors influencing startup closures and the government's support initiatives when making investment decisions.
Key Entities Referenced
Ministry of Corporate Affairs (MCA): An Indian ministry that shares data on closed and inactive startups.
Startup Mahakumbh: An ecosystem-led initiative and platform for stakeholders to network and collaborate.
Department for Promotion of Industry and Internal Trade (DPIIT): The Indian government department responsible for the promotion of industry and internal trade, and for recognizing startups.
Startup India: A Government of India initiative to build a strong ecosystem for nurturing innovation and startups in the country.
Bihar: A state in India, for which specific startup data is provided in the document.
Fund of Funds for Startups (FFS): A flagship scheme by the Government of India to provide funding support to startups.
Startup India Seed Fund Scheme (SISFS): A scheme by the Government of India to provide seed funding to eligible startups.
Credit Guarantee Scheme for Startups (CGSS): A scheme by the Government of India to provide credit guarantee to loans extended to startups.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 4302.
TO BE ANSWERED ON TUESDAY, THE 19TH AUGUST, 2025.
STATUS AND SUSTAINABILITY OF STARTUPS IN INDIA
4302. DR. MOHAMMAD JAWED:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) the number of startups established in the country during the last five financial
years;
(b) the number of startups registered during this period, currently active,
inactive/passive, or have shut down with specific data for the State of Bihar;
(c) the key reasons for the closure of these startups; and
(d) the steps the Government is taking to ensure the sustainability and long-term
success of startups in India?
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) & (b): As on 30th June 2025, a total of 1,80,683 entities have been recognised as
startups by the Department for Promotion of Industry and Internal Trade
(DPIIT). Of these, 1,38,031 have been recognised during the last five financial
years viz. 2020-21, 2021-22, 2022-23, 2023-24, and 2024-25. Specifically for
the State of Bihar, a total of 3,766 entities have been recognised as startups by
DPIIT as on 30th June 2025. Of these, 3,049 have been recognised during the
last five financial years viz. 2020-21, 2021-22, 2022-23, 2023-24, and 2024-25.
As per data shared by the Ministry of Corporate Affairs (MCA) on 18th July
2025, 6,019 recognised startups are categorized as closed (i.e.,
dissolved/struck-off) and 59 recognised startups are categorized as
inactive/dormant. In the given data, specifically for the State of Bihar, 95
recognised startups are categorized as closed (i.e., dissolved/struck-off) and
none categorized as inactive/dormant.
(c): 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.(d): To ensure the sustainability and growth of startups, the Government unveiled
an action plan for startups comprising of schemes and incentives envisaged to
create a vibrant startup ecosystem in the country. The Action Plan comprises
of 19 action items spanning across areas such as “Simplification and
handholding”, “Funding support and incentives” and “Industry-academia
partnership and incubation”.
The flagship Schemes namely, Fund of Funds for Startups (FFS), Startup India
Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups
(CGSS) support startups at various stages of their business cycle. The
Government also implements periodic exercises and programs including
States’ Startup Ranking, National Startup Awards, and Innovation Week which
play an important role in the holistic development of the startup ecosystem. The
Government also encourages and supports ecosystem-led initiatives such as
Startup Mahakumbh which serve as a vibrant platform for stakeholders to
network and collaborate. Initiatives to improve market access and enable public
procurement support startups in growing and scaling up their businesses.
Digital platforms such as the Startup India Hub portal and Bharat Startup
Knowledge Access Registry (BHASKAR) enable easy access to resources and
startup ecosystem collaboration. These measures are complemented by
regulatory reforms and other ecosystem development events and programs.
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