New Delhi, Mar 11 (KNN) The government has recognised 2,12,283 startups in India as of January 31, 2026, Minister of State for Commerce and Industry Jitin Prasada informed the Rajya Sabha.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), 6,789 recognised startups have been categorised as closed, including those that have been dissolved or struck off, based on data from the Ministry of Corporate Affairs.
The minister in written reply to a question in the Upper House stated that startup closures are generally influenced by several factors such as business model viability, alignment with market demand, domestic and global economic conditions, the nature of products and services, and the ability to attract funding.
Government Initiatives to Support Startup Growth
To support the sustainability and growth of startups, the government has implemented a comprehensive Startup India Action Plan consisting of 19 action items covering areas such as simplification and handholding, funding support and incentives, and industry–academia partnerships and incubation.
Flagship initiatives supporting startups at different stages of their lifecycle include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS), which aim to improve access to capital and strengthen the startup ecosystem.
The government also conducts ecosystem development programmes such as the States’ Startup Ranking, National Startup Awards, and Innovation Week, while supporting industry-led initiatives like Startup Mahakumbh to promote collaboration among stakeholders.
In addition, measures have been taken to improve market access, public procurement opportunities, and ease of doing business, including efforts to simplify regulatory procedures and reduce compliance burdens for startups.
Competition Framework Strengthened
The government also highlighted the role of the Competition Commission of India, established under the Competition Act, 2002, which aims to prevent anti-competitive practices, promote fair competition and protect consumer interests.
The Act prohibits anti-competitive agreements, abuse of dominant position, and regulates mergers and acquisitions. The competition watchdog has issued several orders and penalties against companies violating these provisions.
Further, the Competition (Amendment) Act, 2023 introduced a deal value threshold for merger and acquisition transactions. Under this provision, M&A deals exceeding Rs 2,000 crore, involving companies with significant business operations in India, must be notified to the competition regulator even if they do not meet traditional asset or turnover thresholds.
The government said this measure will help the regulator assess potential adverse effects on market competition arising from such transactions.
(KNN Bureau)
