Success rate of startups in India higher than in other countries: Piyush Goyal

The government on Wednesday said that the success rate of startups in India was much higher than in other countries of the world, and the number of startups in the country had increased from 452 in 2016 to 84,012 till November 2022.

Union Minister for Commerce Piyush Goyal said in the Lok Sabha during Question House that startups were prone to failures. “…There is a very high probability of failure of startups. Though I must say, the success rate of startups in India is relatively higher than the rest of the world….”

The Minister was replying to a question by Congress MP Manish Tewari who said that if one looked at the global startup ecosystem, then the United States had 784 startups, China 243 and India 85.

The Minister of State for Commerce and Industry Som Parkash said, “Our startup system is the third largest ecosystem in the world and the most popular and successful scheme.”

Mr. Goyal said that in order to boost the startup ecosystem, the government had launched the Startup India initiative on January 16, 2016, and put in place an action plan for the same.

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He said the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS) and the Credit Guarantee Scheme for Startups (CGSS), were the schemes which extended support to startups at various stages in their business cycle.

The Startup India Seed Fund Scheme was approved for four years starting 2021-22 and is being implemented with a corpus of ₹945 crore. It is aimed at providing financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialisation.