DPIIT Reports 2.5 Lakh Startups Generating 25.42 Lakh Jobs, 47,957 Compliance Cuts

New Delhi, Oct 27 (KNN) The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 2,50,046 startups that have generated over 25.42 lakh jobs across more than 770 districts. The department has also reported 47,957 compliance reductions and USD 843 billion in foreign direct investment (FDI) inflows between FY15 and FY26.

Of the recognised startups, 52 per cent are based in non-metro cities and 48 per cent have at least one woman director. Annual recognitions rose from 34,200 in FY24 to 36,440 in FY25.

Under the Startup India Seed Fund Scheme, Rs 775.67 crore has been approved for 4,194 startups through 244 incubators. Under the Fund of Funds for Startups, the Small Industries Development Bank of India (SIDBI) has committed Rs 12,623 crore to 166 alternative investment funds, which have invested Rs 28,254 crore in 1,475 startups.

The Credit Guarantee Scheme for Startups has guaranteed 532 loans worth Rs 1,662.71 crore. The guarantee cover per borrower has been increased from Rs 10 crore to Rs 20 crore, while the annual fee has been reduced to 1 per cent for 27 champion sectors.

DPIIT has enabled 63 regulatory reforms for startups, including the abolition of angel tax. A total of 4,467 startups hold certificates of eligibility under Section 80-IAC.

The number of startups registered on the Government e-Marketplace has risen from 7,929 in January 2021 to 43,260. These startups have received 6.23 lakh orders worth Rs 68,105 crore from public buyers. Dedicated startup policies are in place in 32 States and Union Territories, compared with four in 2016.

Across Central Ministries and States and Union Territories, 47,957 compliances have been reduced. Of these, 22,290 have been digitised, 16,141 simplified, 5,255 decriminalised and 4,271 eliminated. The Jan Vishwas Acts of 2023 and 2026 have decriminalised 900 provisions across 121 Central Acts.

States and Union Territories have implemented more than 9,700 reforms under seven editions of the Business Reforms Action Plan. The District Business Reforms Action Plan covers 222 reforms for district collectorates, development authorities and urban local bodies.

Twenty-nine Central labour laws have been consolidated into four Labour Codes. The threshold for prior permission for layoffs or closure has been raised from 100 to 300 workers. 

The factory applicability threshold has increased from 10 to 20 workers for establishments using power and from 20 to 40 for those not using power. The threshold for contract-labour licensing has risen from 20 to 50 workers.

The validity of licences issued by the Petroleum and Explosives Safety Organisation has been extended from five to ten years. Its modules have been digitised and integrated with the National Single Window System (NSWS). The Boilers Act, 2025, has replaced the Boilers Act, 1923.

India received USD 843 billion in FDI between FY15 and FY26, 169 per cent more than the USD 313 billion recorded in the preceding 12 years. Inflows reached USD 94.53 billion in FY26.

Seventeen sectors have been opened to FDI under the automatic route. In defence, the automatic-route limit has been raised from 49 per cent to 74 per cent for companies seeking new industrial licences. In insurance, the FDI limit was raised to 100 per cent in 2026 for insurers investing their entire premium in India.

The NSWS has received 15,49,850 applications, registered 5,76,778 businesses and issued more than 8.5 lakh approvals. The platform provides 3,779 services, comprising 327 Central and 3,452 State services, and has integrated 34 States and Union Territories and 32 Central Ministries and Departments.

The system's Know Your Approvals module provides information on more than 8,000 approvals, of which 2,825 are integrated into the platform. It also allows 89 common data fields to be auto-populated across 285 approvals and is available in 22 Indian languages.

The platform also automates the generation of Industrial Entrepreneur Memorandums using data from government databases and e-B4 production visa sponsorship letters through integration with the visa portal.

(KNN Bureau)