India is no doubt emerging as a key startup hub. It now has 1,97,692 DPIIT-recognised startups as of 31 October 2025, according to a government reply in the Lok Sabha. But only 2% of it, or just 4,147 startups, have managed to qualify for the tax exemption, the report added.
This is because the profit-linked tax deduction is available only to startups that meet a strict set of eligibility conditions. A DPIIT is a company officially certified by the government as a startup under the Startup India framework. This essentially allows the startups to avail several benefits such as tax exemptions, easier compliance, funding schemes, etc.
In 2025 (till October), 546 startups secured the tax break, with the highest participation coming from sectors such as healthcare and life sciences, technology hardware, renewable energy, textiles and construction, the reply added.
Startup focus: 21 lakh jobs created
According to the data shared by the Ministry of Commerce and Industry, recognised startups have reported over 21.11 lakh direct jobs. Maharashtra reported 34,444 recognised startups creating more than 3.76 lakh jobs.
Gujarat, Delhi, Karnataka, Tamil Nadu, Rajasthan and Uttar Pradesh also recorded a significant number of tax-eligible startups in 2025.
Women’s participation in startups
The government noted that 48% of all recognised startups have at least one woman director or partner. Startups are now present in every state and Union territory.
Govt schemes see full utilisation
Funding support under the Startup India umbrella has picked up pace. The entire Rs 10,000 crore Fund of Funds has been committed to 144 AIFs, and the Rs 945 crore Seed Fund Scheme has been fully allotted to 219 incubators.
Under the Credit Guarantee Scheme for Startups, 311 loans amounting to Rs 755.25 crore have been guaranteed to startup borrowers so far.
Government procurement has also become a major avenue for scale. More than 34,400 recognised startups are now onboarded on the Government e-Marketplace (GeM), with public entities placing over 4.8 lakh orders worth Rs 47,500 crore cumulatively.
Patent filings rise on IPR reforms
Startups have filed over 16,000 patent applications, helped by lower fees and faster processing. The report also mentioned that the government has cut over 47,000 compliance costs by simplifying, digitising and decriminalising rules. It has also eased the norms on ESOP taxes, loss carry-forward and GST for incubator-based entrepreneurs.
Green-tech startups cross 4,000
Climate-focused innovation continues to gain traction, with 4,024 green-technology startups recognised as of October 2025.
The reply also stated that the government has initiated several efforts across ministries to encourage entrepreneurship, such as setting up Atal Tinkering Labs in schools and innovation cells in colleges.
