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Government recognises record 55,200 startups in FY26; total crosses 2.23 lakh under Startup India

The Centre on Friday said it recognised more than 55,200 startups in 2025-26, the highest ever in a single year since the launch of the Startup India initiative in 2016.

With this, the total number of recognised startups in the country has crossed 2.23 lakh as of March 31, 2026, collectively generating over 23.36 lakh direct jobs.

Strong growth in startups and jobs

According to the Ministry of Commerce & Industry, startup recognition grew by 51.6% year-on-year compared to FY25, while direct employment rose by 36.1% during the same period.

In FY26 alone, startups created more than 4.99 lakh jobs, up from over 3.66 lakh in the previous year, reflecting continued expansion of the innovation ecosystem.

Notably, nearly 48% of recognised startups – over 1.07 lakh – have at least one woman director or partner, indicating rising participation of women in entrepreneurship.

Spread across all states

Startups are now present across all States and Union Territories, with Maharashtra, Karnataka, Uttar Pradesh, Delhi and Gujarat emerging as leading hubs in terms of both numbers and employment generation.

Other states such as Tamil Nadu, Telangana, Haryana, Kerala and Rajasthan have also seen significant growth in startup activity.

Increased funding and credit support

The government highlighted expanded financial support through key schemes. Under the Fund of Funds for Startups (FFS), more than ₹7,000 crore has been disbursed to over 135 Alternative Investment Funds, which in turn invested over ₹26,900 crore in more than 1,420 startups.

Building on this, a new Fund of Funds 2.0 with a corpus of ₹10,000 crore has been launched to further boost funding.

The Credit Guarantee Scheme for Startups has also been strengthened, with the guarantee cover per borrower doubled to ₹20 crore. By the end of FY26, over 410 loans worth more than ₹1,250 crore had been guaranteed.

Seed funding and innovation push

Under the Startup India Seed Fund Scheme, 219 incubators have been supported, approving funding of over ₹605 crore to more than 3,400 startups.

Startup-led innovation has also driven intellectual property creation, with patent filings rising sharply from over 2,850 in FY25 to more than 4,480 in FY26.

Boost through public procurement

The Government e-Marketplace (GeM) has played a key role in supporting startups, with over 38,600 startups onboarded on the platform.

Orders placed through GeM increased significantly, with total order value rising to over ₹19,190 crore in FY26.

Building a robust ecosystem

The government said the continued growth reflects sustained efforts to create a robust ecosystem for innovation, encourage private investment and support startups across their lifecycle.

With record recognitions, rising funding support and expanding market access, India’s startup ecosystem is witnessing strong momentum as a driver of economic growth and job creation.

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