Over 5,000 Startups Registered Under Startup India Have Closed, Says Government

Out of 1.52 lakh startups recognized under the Startup India program by the Department for Promotion of Industry and Internal Trade (DPIIT), 5,063 (3.3%) have been categorized as closed, as per Ministry of Corporate Affairs data as of December 5, 2024. 

This information was shared by Jitin Prasada, Minister of State in the Commerce Ministry, in a written Lok Sabha reply.

Maharashtra has the highest number of closed startups (929), followed by Karnataka (644), Delhi (593), Uttar Pradesh (487) and Telangana (301). The state-wise breakdown highlights regional disparities in startup closures across India.

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The DPIIT has recognized these entities across more than 55 industries, with registered startups collectively generating over 16.6 lakh direct jobs as of October 31, 2024. 

The IT services sector leads, creating 2.04 lakh jobs, followed by healthcare and life sciences (1.47 lakh), professional services (94,060), education (90,414), and construction (88,702). Food and beverage startups, human resources, and other sectors have also made significant contributions.

Separately, the Ministry of Micro, Small and Medium Enterprises (MSME) reported that 61,469 MSMEs have shut down since the Udyam portal's launch in July 2020. This includes 60,909 micro units, 507 small units, and 53 medium-sized units. Over 12000 closures occurred in the last four months reflecting challenges within this sector.

Despite setbacks the Startup India initiative continues to foster entrepreneurial growth. Policymakers aim to address these closures while enhancing support systems to ensure sustainability in India's startup ecosystem.

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