Key states such as Maharashtra, Karnataka, and Delhi continue to lead, while funding support and innovation activity, including patent filings, have also surged. | Photo Credit: LIGHTCOME

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 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 51.6 per cent year-on-year in FY26 compared to FY25, while direct job creation increased by 36.1 per cent during the same period.

Top states emerge as startup hubs

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.

Funding support through key schemes expands

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.

Credit guarantee scheme strengthened

“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,” ministry said.

Under the Startup India Seed Fund Scheme, 219 incubators have been selected, with funding commitments of Rs 945 crore. These incubators have approved over Rs 605 crore for more than 3,400 startups.

Rise in innovation and public procurement

Startup-led innovation has also strengthened intellectual property generation, with more than 19,400 patent applications filed by startups. Patent filings increased from over 2,850 in FY 2024-25 to more than 4,480 in FY 2025-26.Public procurement through the Government e-Marketplace (GeM) has further supported startups, with over 38,600 startups onboarded and a rise in total orders and value during the year.The ministry said that the measures are aimed at sustaining growth, improving funding access, and strengthening India’s position as a global startup hub.

Published on April 18, 2026