Over 50 Per Cent Of Startups Are From Non-Metro Cities, Says Government

The Union minister, Som Parkash, said over 20,000 per cent of growth in the number of startups happened within the last six years

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Som Parkash, union minister of state for commerce and industry, reportedly, stated that more than 50 per cent of recognized startups in India emerged from non-metro cities and over 20,000 per cent of growth in the number of startups happened within the last six years. He made the statement during an interaction in the Parliament this week.

Som Parkash Twitter handle

"As on June 30, 2022, a total of 72,993 startups are recognized by DPIIT. Out of which 34,473 recognized startups belong to metropolitan cities of Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune and Ahmedabad. Therefore, over 50 per cent of startups are from non-metropolitan cities," Parkash said in the statement.

He also added that, "Startups and the entire innovation ecosystem are the engines of growth for any country. Sustained government efforts in this direction have resulted in increasing the number of recognized startups from 471 in 2016 to 72,993 in 2022."

According to DPIIT, the startups are spread across 56 diversified sectors. More than 3300 DPIIT recognized startups are operating in climate action sectors that provides solution through renewable energy and green technology. More than 4500 startups have been recognized in sectors relating to emerging technologies such as Internet of Things (IoT), robotics, artificial intelligence and analytics.

"The government has been working on many initiatives to boost the startup ecosystem. As a part of this programmes, it has set up Atal Incubation Centres (AIC) in which startups are incubated in various sectors under the Atal Innovation Mission. The government had also launched Atal New India Challenge (ANIC) to directly aid startups with technology-based innovations that solve sectoral challenges of national importance and societal relevance," said the Minister.

As per market studies, the total funding raised by Indian startups in the second quarter of 2022 saw a huge decline of 42 per cent from $11.8 billion to $6.8 billion. Moreover, the deal count also declined 22 per cent from 507 in Q1 to 393 in Q2.