According to Minister of State (MoS) for Science and Technology Jitendra Singh, the number of startups in India has grown 300 times in the past nine years. India was home to only 350 startups before 2014, but that number has seen a ‘quantum jump’ to more than 90,000 startups, including over 100 unicorns. The MoS added that biotech startups have also gone up from nearly 50 to around 6,000 currently. However, the funding winter that began in 2022 has continued into 2023, with funding numbers falling 75% YoY to $3 Bn in Q1 2023 against $12 Bn raised in Q1 2022. The decline has been the result of mourning losses, global macroeconomic pressures, and the ongoing Russia-Ukraine war.
The Indian government has committed investments worth INR 1,711 Cr for startups in 2022, under the Fund of Funds for Startups (FFS) scheme, and has undertaken a slew of other schemes such as the Credit Guarantee Scheme for Startups (CGSS), three-month income tax exemption, and self-certification, among others, to boost the local startup ecosystem. The Indian government has committed investments worth INR 1,711 Cr (approximately USD 230 million) for startups in 2022 under the Fund of Funds for Startups (FFS) scheme. Additionally, the government has allocated INR 267.50 Cr (approximately USD 36 million) for incubators under the Startup India Seed Fund Scheme (SISFS) in the same period. These efforts are aimed at boosting the local startup ecosystem in the country. The government has also undertaken several other schemes, such as the Credit Guarantee Scheme for Startups (CGSS), three-month income tax exemption, and self-certification, among others, to support startups in the country.