DPIIT Recognized Startups In India- 5 States Account For Almost 60% Of The Startups
Nearly 60% of the DPIIT-recognized startups are located in 5 states, with Maharashtra having the largest concentration, followed by Karnataka and Delhi
DPIIT Recognized Startups
Startups approved by the Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade (DPIIT) are able to get perks such tax waivers, self-certification, and a laxer enforcement of regulations. Furthermore, it was observed that from 452 in 2016 when the program was launched, the total amount of startups that received recognition from DPIIT had expanded by over fifty times to approximately 24,000 by the end of November 2022.
As of 30 November 2022, 58% of the greater than 84,000 startups that the DPIIT has recognized were from these five Indian states – Maharashtra, Karnataka, Delhi, Uttar Pradesh, and Gujarat.
In addition to this, 82% of the certified startups are located in the top ten states. Additionally, according to data, out of every 1000 firms formed between 2016 and 2021, 89 startups received recognition at the national level.
According to data made public by government agencies, Maharashtra had 13,519 recognized startups by the end of November 2022, making it the state with largest number of startups throughout the nation. Following this are- Karnataka (8,881), Delhi (8,636), Uttar Pradesh (6,654), Gujarat (4,920), Haryana (3,985), Tamil Nadu (3,953), Telangana (3,875), Kerala (3,277), West Bengal (2,301), Rajasthan (2,299) and Madhya Pradesh (2,119) among others.
Dr. Ritesh Malik, a leading investor and entrepreneur, commented on the concentrated presence of startups throughout the nation and noted that practically all startup clusters worldwide are localized in silos. For instance, Israel has Tel Aviv, whereas the United States has the Bay Area, which is located in San Francisco. One characteristic of a technological ecosystem is the concentration of money, skill, and personnel.
India continues to be increasingly diverse, with five active ecosystems flourishing. India will not genuinely become independent, he continued, unless micro entrepreneurship is democratized and varied throughout all metro areas, tier 1, 2, and 3 cities, and villages. While technological startup environments might be fragmented, he added, micro entrepreneurship prospects must be made accessible to everyone.
Government Fosters Startups
The national government launched the Start-up India initiative on January 16, 2016, in an effort to build a strong ecosystem for promoting the expansion of innovation and entrepreneurship in the country. Thirty-one of the 36 States as well as Union Territories in India have a formal startup policy. There is no specific policy in the two states of Ladakh and Arunachal Pradesh.
Following the launch of the Startup India initiative in 2016, the startup guidelines were developed. These regulations are necessary because they make it easier to follow rules and provide incentives, creating an atmosphere that is favorable for entrepreneurs. Many of these regulations talk about the entire development of the startup ecosystem in the country by offering incentives to significant startup actors like incubators, universities which include IITs, as well as additional educational institutions.
DPIIT acknowledged 60,239 startups during the course of the six-year time frame spanning from 2016 to 2021. According to information from the Ministry of Corporate Affairs, a total of 6,76,635 Indian firms have been registered in the nation throughout this time. That is, 89 startups have received DPIIT accreditation for each one thousand Indian enterprises that were established in the nation during this time.
It should be emphasized that not all registered businesses may be fresh start-ups. Additionally, startups are not required to seek for or receive departmental accreditation in the very same year that they register. The firm must not have reached 10 years after its initial day of registration in order to meet one of the requirements for being recognized as a startup. To decide if a firm is a startup, other elements like paid-up capital, turnover, and so forth are also additionally taken into account.
Action Plan for a Start-up India lays the foundation for government support to create a vibrant ecosystem of startups in the country. Such such as “Simplification and handholding,” “Funding support and incentives,” as well as “Industry-academia partnership and incubation” are covered.
As a component of the Start-up India Initiative, the government implemented the Fund of Funds for Startups (FFS) as well as the Start-up India Seed Fund Scheme (SISFS) to provide financial help at various stages of a start-up business’s lifecycle. Both of these programs are in place all throughout India and are reportedly assisting startup founders in getting a foothold in their respective industries.
5 states accounted for almost 60% of the DPIIT-recognized startups
According to a Lok Sabha response dated 7 December 2022, the DPIIT had at the time of 30 November 2022 recognized 84,012 startups overall since the program’s beginning. The data also shows that every single of the 36 States as well as Union Territories has a minimum of one startup that has received DPIIT recognition.
Approximately 18.5% of the registered startups were located in Maharashtra. Whilst Maharashtra had a total of over 15,000 certified startups, Delhi and Karnataka each had greater than 9,000, making up 11.8% and 11.4% of the total. With an estimated 7,500 firms recognized, Uttar Pradesh was the state with the fourth-highest percentage (9.2%), which was followed by Gujarat which had greater than 5,800 startups (7%). 58% of the total number of startups that the DPIIT acknowledged were located in these five states as a whole.
The top 10 states with the most startups recognized by DPIIT, including Tamil Nadu, Haryana, Telangana, Kerala, and West Bengal, collectively accounted for 82% of all companies recognized in the nation. Whilst Kerala had a little over 3,700 and West Bengal had greater than 2,700 registered startups, Tamil Nadu, Haryana, and Telangana each possessed over four thousand registered startups. Rajasthan has an estimated 2,700 certified startups, slightly below West Bengal.
Kerala, UP, and Haryana are among states without Tier-1 cities but in the top 10
The cities in the nation are divided into three categories for home rent allowance considerations contingent upon the decennial Census: X, Y, and Z. The three categories of cities are most frequently referred to as Tier-1, Tier-2, and Tier-3, respectively.
The eight metro areas are designated as Tier-1 or “X” cities, including Delhi, Bengaluru (Karnataka), Mumbai, Pune (Maharashtra), Chennai (Tamil Nadu), Kolkata (West Bengal), Ahmedabad (Gujarat), and Hyderabad (Telangana). According to the breakdown of certified startups by states, every one of the seven states with Tier-1 cities are among the top 10. Tier-2 or “Y” cities are more prevalent in Uttar Pradesh as well as Kerala, two of the top 10 states, than in other states.
During the years 2016 and 2021, 45 startups for every 1000 enterprises across all states received recognition, compared to 130 in Karnataka alongside 149 in Chhattisgarh. For every 1,000 firms formed, a minimum of 100 startups in important states like Chhattisgarh, Karnataka, Gujarat, Assam, Kerala, Madhya Pradesh, and Haryana received acknowledgement.
Maharashtra similarly has a share greater than the national average, with the exception of Gujarat along with Karnataka. In comparison to the national average, the remaining states with Tier-1 cities, including West Bengal, Delhi, Tamil Nadu, and Telangana, acknowledge fewer startups per 1,000 firms registered. In comparison to the state of Chhattisgarh, Bihar has the lowest proportion—roughly one-third.
31 out of 36 States/UTs have their own startup policy
31 of India’s 36 States as well as Union Territories possess a specific startup policy. Ladakh and Arunachal Pradesh are two states that lack a specific policy. After the Startup India program was introduced in 2016, 27 of the aforementioned Startup Policies were created.
These policy decisions at the state level are essential because assistance in the form of state-level incentives and simplicity in regulations becomes necessary. By offering incentives to important startup players like incubation facilities, colleges like the IITs, and other higher learning institutions, many of these policies discuss the overall growth of the ecosystem for startups within the nation.
The NITI Aayog annually performs a ranking of States based on Support towards Startup Ecosystems. It is a performance-oriented index designed to make starting a business simple and to foster the development of an ecosystem that is supportive. It was started in 2018 and has a score of 100 overall with 26 action points. Eight of the aforementioned 26 action points were developed based on feedback that was given.
Five categories- Best Performers, Top Performers, Leaders, Aspiring Leaders, and Emerging Start-up Ecosystems, are used to rank the states. In order to help states as well as union territories build their start-up ecosystems while gaining knowledge from each other’s finest practices, the State Start-up Ranking Activity was created.
The exercise conducted in 2021 revealed Meghalaya being the top achiever amongst UTs and North-eastern states, whereas Gujarat and Karnataka were the states with the best results in the umbrella group of States that includes the NCT of Delhi.
Jammu & Kashmir won the title of Top Performer amongst UTs and NE states whereas Kerala, Maharashtra, Odisha, and Telangana were named as the Top Performers award amongst states. Mizoram and Ladakh in the category of UTs/NE States along with Andhra Pradesh and Bihar under the States category were combined within the category of Emerging Start-up Ecosystem.
Published By Naveenika Chauhan
