NEW DELHI: The government recognised more than 55,200 startups during the financial year 2025-26, marking the highest annual addition since the launch of the Startup India initiative, according to the Ministry of Commerce & Industry.
The total number of recognised startups in the country has crossed 2.23 lakh as of March 31, 2026, collectively generating over 23.36 lakh direct jobs. The strong growth reflects continued expansion of India’s startup ecosystem over the past decade.
The Startup India initiative was launched in January 2016, aimed to build a supportive environment for innovation, encourage investments, and promote entrepreneurship. The number of recognised startups rose by 31.6 per cent year-on-year in FY26 compared to FY25, while direct job creation increased by 36.1 per cent during the same period.
The ministry noted that startups are now spread across all states and Union Territories, with Maharashtra, Karnataka, Uttar Pradesh, Delhi and Gujarat emerging as leading hubs in terms of both number of startups and employment generation. “The Government continues to support startups through flagship schemes including the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS), providing financial support at various stages of the startup lifecycle,” ministry added.
Similarly, under the Fund of Funds for Startups (FFS), more than Rs 7,000 crore has been disbursed to over 135 Alternative Investment Funds, which have further invested over Rs 26,900 crore in more than 1,420 startups. A second fund with a corpus of Rs 10,000 crore has also been announced.
“The Credit Guarantee Scheme for Startups has been expanded in FY 2025-26 to enhance capital mobilisation by increasing the guarantee cover per borrower from Rs. 10 crore to Rs. 20 crore, enhancing the extent of guarantee cover, and reducing the annual guarantee fee for lenders in identified sectors. By the end of FY 2025-26, more than 410 loans amounting to over Rs. 1,250 crore have been guaranteed,” ministry said. Under the Startup India Seed Fund Scheme, 219 incubators have been selected, with funding commitments of Rs 946 crore. These incubators have approved over Rs 606 crore for more than 3,400 startups. Startup-led innovation has also strengthened intellectual property generation, with more than 19,400 patent applications filed by startups. Patent filings increased from over 2,880 in FY 2024-25 to more than 4,480 in FY 2025-26.
