The startups recognised by the Indian government have created more than 12 Lakh jobs, according to a report by the Ministry of Finance.
In the report titled, ‘The Indian Economy: A Review January 2024’, which covered data till the end of October 2023, the Department of Economic Affairs said that the 1.14 lakh startups recognised by the government under the Startup India initiative created more than 12 lakh jobs as of October 2023.
Touting the Centre’s startup push, the report also mentioned that 2.1 Lakh loans were disbursed under the initiative till November last year. Of this, 84% loans were sanctioned to women entrepreneurs in the country.
The report highlighted that the Centre has undertaken multiple regulatory reforms, including the decriminalisation of 3,600 compliances and improved the ease of doing business, to push the burgeoning homegrown startup ecosystem.
On the state-backed Open Network for Digital Commerce (ONDC), it said that the platform clocked more than 63 Lakh transactions till November 2023.
Amid the ongoing debate around emerging technologies, artificial intelligence (AI) also found mention in the report. It said that AI poses a major challenge for the governments globally, especially on account of its impact on employment.
“… the advent of Artificial Intelligence (AI) poses a big challenge to governments around the world due to the questions it poses to employment particularly in services sectors. This was recently highlighted in an IMF paper estimating that 40% of global employment is exposed to AI, with the benefits of complementarity operating beside the risks of displacement,” the report said.
It is pertinent to note that the World Economic Forum, in a recent report, also said that Indian tech startups directly employed more than 10.34 Lakh individuals in 2023. It added that this number is expected to rise in the coming years.
Banking on affordable internet and smartphones, the Indian digital economy has seen multifold increase in the past decade. With more than 931 Mn smartphone users, this digital push has, in turn, spurred the country’s burgeoning startup ecosystem.
As per Inc42 data, Indian startups have raised more than $146 Bn till date. The homegrown startup ecosystem has 113 unicorns, with a combined valuation north of $350 Bn. Alongside, more than 20,000 active investors and 25 listed new-age tech companies have made India an attractive destination for capital inflow.
However, the Indian startup ecosystem is currently reeling under the effects of the ongoing funding winter. This resulted in funding in 2023 cratering to pre-2017 levels. Indian startups raised a mere $10 Bn last year, a far cry from $25 Bn in 2022 and $42 Bn in 2021. But, green shoots of revival seem to be in the offing as industry stakeholders estimate a turnaround in the funding number by the second half of 2024.
With the interim Budget 2024 also just around the corner, all eyes are now on February 1 as to what will be in store for Indian startups.
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