The number of startups recognized by the government increased by 51.6% on year to 55,200 in 2025-26, which is the highest number recognised in a single year since the launch of the Startup India initiative in 2016.

Since inception, the number of recognized startups has crossed 2.23 lakh as on 31st March 2026, generating more than 23.36 lakh direct jobs. More than 1.07 lakh recognized startups have at least one woman director or partner, accounting for approximately 48% of total recognized startups, a statement by the Ministry of Commerce and Industry said.

Startups are now present across all States and Union Territories. Maharashtra, Karnataka, Uttar Pradesh, Delhi and Gujarat have emerged as leading regions in terms of the number of recognized startups and direct employment generation as on 31st March 2026.

Startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) get financial, legal, operational and procurement benefits.

The eligible startups can claim 100% tax exemption on profits for three consecutive years within the first 10 years of operations. Investors in these startups have been exempted from Angel Tax. Investors can claim exemptions on capital gains if they reinvest those gains into government-notified funds or eligible startups

They are subject to lesser conditions like prior experience and earnest money deposit while participating in public tenders. Apart from that they also get seed funding as grants up to Rs 50 lakh.

The key schemes for startups are 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.

Under FFS, more than Rs. 7,000 crore has been disbursed to over 135 Alternative Investment Funds (AIFs) by the end of FY 2025-26, which 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 FY 2025-26 to enhance capital mobilization 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.

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 Government e-Marketplace (GeM) has further facilitated startup participation in public procurement. More than 38,600 startups have been onboarded on the platform.