India emerges as third largest startup ecosystem in the world

  • India has 51 unicorns ahead of UK and Germany
  • In the last few years, India has added three unicorns every month
  • Startup India initiative was launched in 2016

IndiGlobal Bureau

Notwithstanding the effects of the pandemic and the overall global economic slowdown, the Indian startup ecosystem is looking up. India has emerged as the third largest startup ecosystem in the world after the US and China and the pace of growth is not showing any signs of slowing down. Over the last few years, India has added three unicorns every month taking the total count to 51, ahead of the UK (32) and Germany (18). A privately held startup company valued at over $1 billion is called a unicorn.

Union Minister of State for Commerce and Industry Som Prakash

Union Minister of State for Commerce and Industry Som Prakash stated in a written reply to a question in the Rajya Sabha, that the Startup India initiative was launched in 2016 with the objective of building a strong ecosystem for nurturing innovation and entrepreneurship in the country, adding that all initiatives are implemented across States, cities, towns and rural areas.

The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country, said the statement. According to the statement, the Government has established FFS with a corpus of Rs. 10,000 crore, to meet the funding needs of startups.

The Minister added that Under Startup India initiative, as on 30th June 2022, a total of 72,993 have been recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). The Government of India, as part of Startup India initiative, is implementing the Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme (SISFS) to provide financial assistance to startups through Alternative Investment Funds (AIFs) and incubators respectively, said the minister’s statement. It further said that under SISFS, as on 30th June 2022, a total of 703 startups have been provided with funds while 428 startups have been approved for funding.

Listing various programs undertaken by the Government to promote startups across the country under Startup India initiative, the minister’s statement said that an Action Plan for Startup India was unveiled on 16th January 2016. The Action Plan comprises 19 action items spanning across areas such as ‘simplification and handholding ‘, ’funding support and incentives’ and ‘Industry academia partnership and incubation’.