The government of India is getting closer to its lofty target of having a registered startup in each of the nation’s 785 districts by the next year. According to officials from the industry department, there are now just 20–25 districts without a registered startup.
Surge in Startup Registrations
Under the Startup India program, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized more than 100,000 companies. A company must be under ten years old and have an annual sales of less than Rs 100 crore in order to be eligible for registration. Acknowledged startups are eligible for a number of benefits, such as financial aid and tax reductions.
Challenges and Efforts
The remaining districts seeking their first startups are primarily located in remote areas of the Northeast (Arunachal Pradesh, Mizoram, Manipur, Sikkim) and regions affected by left-wing extremism (Madhya Pradesh, Chhattisgarh, Telangana). The government is collaborating with academic institutions, state and district administrations, startup accelerators, and seed funds to raise awareness about establishing startups nationwide. DPIIT joint secretary Sanjiv emphasized the program’s long-term vision of fostering entrepreneurs and startups in every village.
Northeastern Hurdles
The program faces specific challenges in the Northeast due to security concerns, geopolitical issues, and limited awareness among residents. Additionally, new district formations, like Rajasthan’s increase from 33 to over 50 districts last year, create temporary hurdles in tracking startup registration data.
Geographical Distribution
From 2019 to 2023, Maharashtra led the nation in startup registrations, followed by Karnataka, Delhi, Uttar Pradesh, and Gujarat. Conversely, Lakshadweep, Ladakh, Sikkim, Mizoram, and Arunachal Pradesh registered the fewest startups during this period.
Future Focus
As part of the new government’s 100-day plan, the industry department is expected to prioritize simplifying early-stage funding for startups and streamlining compliance burdens for businesses. This will likely contribute to a more supportive environment for future startup growth across India.
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