1.14 Lakh Startups Generate More Than 12 Lakh Jobs in India: Report The report by the Finance Ministry also says that state-owned e-commerce platform ONDC clocked more than 63 lakh transactions till November 2023
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More than 1.14 lakh startups in India have created over 12 lakh jobs so far, the Finance Ministry has said in its latest review of the Indian economy.
"1.14 lakh startups recognized by the government under the 'Startup India initiative' created more than 12 lakh jobs (as of October 2023)," it said in a report titled, 'The Indian Economy: A Review January 2024', the Department of Economic Affairs said that the .
It also added that the state-owned e-commerce platform Open Network for Digital Commerce (ONDC) clocked more than 63 lakh transactions till November 2023.
The report also mentioned that the Centre has undertaken multiple regulatory reforms, including the decriminalisation of 3,600 compliances and improved the ease of doing business. The Jan Vishwas Amendment Bill 2023, passed by the Parliament, proposes to decriminalise 183 provisions across 42 Central Acts administered by 19 Ministries/Departments, it said.
Why Indian startups continue to flourish despite challenges
Despite many challenges, Indian startups and startup founders have been offering game-changing solutions to not just the domestic market, but to countries across the world. From 400 in 2016, the number of startups has grown to more than 100,000 startups in 2023, according to Department for Promotion of Industry and Internal Trade (DPIIT). This exceptional growth has happened due to the confluence of various key factors.
"India's undisputed technological reputation on the global stage sets her apart from other countries. Indian startups have made significant strides in areas such as software development, artificial intelligence, and e-commerce, earning international acclaim. This tech-savvy reputation enjoyed by India not only garners global recognition but also positions Indian startups as formidable contenders in the global arena in the aforementioned technological domains," said Sandiip Bhammer, founder and co-managing partner, Green Frontier Capital.
Funding has played a huge role as well. While 2023 was slow in terms of funding, from 2016 to 2021, the funding kept increasing. According to Statista, in 2023, the Indian startup ecosystem received a total funding of nearly 11.3 billion U.S. dollars. This was a decrease from last year's funding amounting to over 25 billion U.S. dollars. 2021 witnessed the highest startup funding in the recorded period.
While chasing unicorn status cannot be the sole purpose or goal of startups, achieving the same is a key milestone for individual startups and the ecosystem. According to a report by Orios Venture Partners, while India witnessed a total of only 2 unicorns in 2023, it continues to be the third largest nation with the most number of unicorns.
Commenting on the report, Rehan Yar Khan, Managing Partner, Orios Venture Partners said "Though 2023 saw only 2 Unicorns, we are excited to note how in the last 4 years startups are taking 5 to 6 years to get to Unicorn status vs 8 to 10 prior to that. That shows the market has become large. We also love how many Unicorns are profitable and in our conversation with several Unicorn founders, profitability was a big focus area. Both these factors point to there being a significant number of tech IPOs in 2024 and the years to follow."
Government support has also been instrumental in propelling the ecosystem forward. The government has launched many schemes to boost the startup ecosystem such as the Seed Fund Scheme, Fund of Funds Scheme, and Credit Guarantee Scheme.