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
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
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