Nirmala Sitharaman hails India's startup surge: 1.76 lakh ventures and 118 unicorns in 11 years

India's startup ecosystem has witnessed a remarkable transformation over the past decade, with the number of registered startups reaching 1.76 lakh. Among these, 118 have achieved unicorn status, each valued at over $1 billion. This significant milestone was announced by Finance Minister Nirmala Sitharaman, highlighting the pivotal role startups play in driving youth entrepreneurship and job creation across the nation. The growth of startups in India is a testament to the country's innovative spirit and the government's supportive policies aimed at fostering entrepreneurship.

Under the leadership of Prime Minister Narendra Modi, the Indian government has implemented a series of initiatives to nurture and sustain the startup ecosystem. These efforts have not only led to the creation of numerous startups but have also established a robust framework that supports their growth and sustainability.

Finance Minister Sitharaman, in a post on the social media platform X, emphasized the role of Indian youth in building startups and creating jobs, describing it as "a glimpse of the work done for the youth in the last 11 years under the guidance of Prime Minister Narendra Modi."

Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, also highlighted the government's efforts in expanding educational opportunities. Over the past 11 years, seven new Indian Institutes of Technology (IITs), eight Indian Institutes of Management (IIMs), and 16 All India Institutes of Medical Sciences (AIIMS) have been established. These institutions are crucial in equipping the youth with the skills and knowledge needed to thrive in a competitive global economy.

In addition to educational initiatives, the government has focused on skill development to bridge the skills gap in the workforce. The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has trained over 1.6 crore youth, and 17.6 lakh direct jobs have been created from the 1.6 lakh startups. Furthermore, nearly 30,000 vocational education schools have been established, enrolling more than 30 lakh students. These efforts ensure that the Indian workforce is equipped to meet the demands of a rapidly evolving job market.

The government's commitment to supporting startups is further evidenced by the expansion of the Credit Guarantee Scheme for Startups (CGSS). Notified last month by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, the scheme has increased the ceiling on guarantee cover per borrower from Rs 10 crore to Rs 20 crore. This expansion addresses the financing needs of innovation-driven startups, reducing the perceived risks associated with lending to startups and enabling greater financial flow for research and development.

The extent of guarantee cover provided under the CGSS has also been increased to 85 percent of the amount in default for loan amounts up to Rs 10 crore and 75 percent for loan amounts exceeding Rs 10 crore. These measures align with Prime Minister Modi's vision of transforming India into an innovation-driven, self-reliant economy. By facilitating access to capital, the government aims to empower startups to undertake cutting-edge research and development, ultimately leading to the creation of innovative technologies and solutions.