Lok Sabha Question No. 4302 (UNSTARRED), answered on 2025-08-19
Subject: Status and Sustainability of Startups in India
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Mohammad Jawed

## 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 19 TH  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 30 th   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 30 th  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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