Government Recognizes 55,200 Entities as Startups in 2025-26 Fiscal Year
Detailed Analysis
Government Recognises Record 55,200 Startups in 2025-26
The Commerce and Industry Ministry announced on Friday that it has recognised over 55,200 entities as 'startups' during the 2025-26 fiscal year. This marks the highest number of startups recognised in a single year since the launch of the Startup India initiative in 2016.
The Startup India initiative was launched on January 16, 2016, with an action plan comprising schemes and incentives aimed at creating an ecosystem for nurturing innovation, encouraging private investments, and supporting startups across the country. As of March 31, the total number of recognised startups has crossed 2.23 lakh.
The government's support for startups has led to the creation of more than 23.36 lakh direct jobs. The ministry 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.
| Scheme | Disbursed Amount (Rs crore) | Number of Startups Funded | | --- | --- | --- | | FFS | 7,000 | More than 1,420 | | SISFS | Entire corpus of Rs 945 crore committed | More than 3,400 | | CGSS | More than Rs 1,250 crore | More than 410 |
Under the Fund of Funds for Startups (FFS), more than Rs 7,000 crore has been disbursed to over 135 Alternative Investment Funds (AIFs) by the end of 2025-26. These AIFs have further invested more than Rs 26,900 crore in over 1,420 startups. Building on this, the government has notified Startup India Fund of Funds 2.0 with a corpus of Rs 10,000 crore.
The Credit Guarantee Scheme for Startups has been expanded in 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 2025-26, more than 410 loans amounting to over Rs 1,250 crore have been guaranteed.
Under the Startup India Seed Fund Scheme, 219 incubators have been selected, and the entire corpus of Rs 945 crore has been committed. These incubators have approved funding of over Rs 605 crore to more than 3,400 startups. The scheme has been extended to enable continued disbursement and completion of approved activities.
The ministry also reported a significant increase in patent filings by startups. Patent filings increased from over 2,850 in 2024-25 to more than 4,480 in 2025-26, with over 19,400 patent applications filed by startups.
