Over 5,000 startups registered under Startup India shut down: Govt data reveals

As of December 5, 2024, over 5,000 startups registered under the Startup India initiative have been closed, according to government data. The Ministry of Corporate Affairs reports that 3.3% of the 1.52 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) have either been dissolved or struck off. This data was shared by Jitin Prasada, Minister of State for Commerce, in response to a Lok Sabha question.

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State-wise, Maharashtra leads with the highest number of closed startups, totaling 929, followed by Karnataka (644), Delhi (593), Uttar Pradesh (487), and Telangana (301). Other states also recorded significant closures.

Despite this, startups in India have made a notable impact, creating over 16.6 lakh direct jobs across 55 industries as of October 31, 2024. The IT services sector contributed the highest with 2.04 lakh jobs, followed by healthcare (1.47 lakh) and professional services (94,060). The education and construction sectors also saw substantial job creation.

Additionally, the government’s Udyam portal has recorded the closure of 61,469 MSMEs (micro, small, and medium enterprises) as of November 15, 2024. This includes a rise in closures, with more than 12,000 MSMEs shutting down in the past four months alone.