India Needs 10 Lakh Start-ups To Generate 1 Crore Employment: Report

India, which has the second-largest start-up ecosystem in the world, is now creating about 30 recognised start-ups daily since the launch of Startup India initiative

On an average, one recognised start-up generates 10 jobs, while around 30 start-ups are launched per day, DPIIT said. Image: Getty ( Image Source :Getty )

New Delhi: Indian start-ups have created more than 7 lakh employment across the country to date since the government rolled out the Startup India initiative on January 16, 2016.  

according to CMIE data, unemployment in the country hovers at 7.3 per cent in May, 2020, which means 7.3 per cent of the country’s workforce is jobless.

The rate of unemployment was at 5.51 per cent when the government launched the Startup India initiative in 2016.

The data from CMIE stated that the rate of unemployment has grown over the years. In 2017, 2018, and 2019 the rate came down a bit to 5.41 per cent, 5.33 per cent, and 5.27 per cent, respectively. However, the unemployment rate jumped to 7.11 per cent in 2020 and it touched 7.3 per cent in 2022.

Unemployment Rate

2022 – 7.3 per cent (May)

2020 – 7.11 per cent

2019 – 5.27 per cent

2018 – 5.33 per cent

2017 – 5.41 per cent

2016 – 5.51 per cent

Source: CMIE

New reports have suggested that the central government in 2016 had established a Rs 10,000-crore fund under the Small Industries Development Bank of India (Sidbi) to meet the financial needs of start-ups.

India has the second-largest start-up ecosystem in the world.

Data sourced from Startup India showed that from 2016 to 2022 (to date), there are 69,895 start-ups functioning across the country.

Since the launch of the scheme, India is now creating about 30 recognised start-ups daily.

Among all the states, Maharashtra leads with six recognised start-ups per day.

Department for Promotion of Industry and Internal Trade (DPIIT), a body under the Ministry of Commerce, revealed that recognised Indians have created a total of 7,07,508 jobs. On an average, one recognised start-up generates 10 jobs, while around 30 start-ups are launched per day.

IT services have the most number of start-ups in the country with the figure touching 8,000. These firms have created around one lakh jobs.

In second spot comes the health start-ups.

Start-ups in the agriculture sector are placed at eighth position. More than 3,000 start-ups have created around twenty-thousand jobs in the agri sector.

Unicorn start-ups

India got its 100th Unicorn in May 2022

The total value of unicorn start-ups is over Rs 25 lakh crore ($332.7 billion).

Job generation

India needs 10 lakh start-ups in the country to create 1 crore jobs.

Profitable unicorns in India

Of 100 unicorns, only 18 unicorns have made profit in FY21, according to Entrackr’s data tracking platform Fintrackr. 

Sectorwise start-ups

Top sector	DPIIT recognised start-ups	Jobs created
IT Services	8,280	98,207
Healthcare & Life Sciences	6,098	66,086
Education	4,386	46,323
Professional & Commercial Services	3,268	42,880
Food & Beverages	3,002	37,257
Finance Technology	2,059	28,123
Construction	2,292	27,093
Agriculture	3,026	25,833
Human Resources	1,248	25,401
Technology Hardware	2,037	18,882
Source: Startup India (Data till May 17, 2022)

Start-ups in states

State/UT	DPIIT recognised start-ups	Per day start-ups
Maharashtra	12,960	6
Karnataka	8,593	4
Delhi	8,322	4
Uttar Pradesh	6,343	3
Gujarat	4,662	2
Haryana	3,829	2
Tamil Nadu	3,764	2
Telangana	3,696	2
Source: Startup India (Data till May 17, 2022)

These states have been creating one start-up daily

State/UT	DPIIT recognised start-ups	Per day start-ups
Kerala	3,152	1
Rajasthan	2,194	1
West Bengal	2,170	1
Madhya Pradesh	1,990	1
Odisha	1,280	1
Bihar	1,177	1

Source: Startup India