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Startups created 7.68 lakh jobs in India in last 6 years, with Maharashtra taking the lead

Maharashtra topped with more than 1.46 lakh jobs, with Karnataka, which houses the tech hub of Bengaluru, a distant second with more than 1.03 lakh jobs. Maharashtra also beat Karnataka when it comes to the number of startups registered in a state

July 20, 2022 / 04:32 PM IST
Representative image

Representative image

Startups generated 7.68 lakh—7,67,754—jobs in India in the last six years, while 72,993 such businesses were registered during the period, the government told Parliament on July 20.

The commerce and industry ministry’s data for the period January 2016, when the Startup India programme was launched, to June 30, 2022 period has a surprise winner in Maharashtra, which tops the list with more than 1.46 lakh jobs.

Karnataka, which houses the tech hub of Bengaluru, is a distant second with over 1.03 lakh jobs. Delhi ranks third with 87,643 jobs and Uttar Pradesh with 67,694 comes next.

In terms of the number of startups registered in the last six years, Maharashtra again takes the pole position with 13,519, followed by Karnataka at 8,881, Delhi at 8,636, and Uttar Pradesh at 6,654.

startup jobs 2007_001

In a written reply to a question in the Lok Sabha on the third day of the monsoon session, minister of state for commerce Som Prakash said 52 regulatory reforms had been undertaken by the government since 2016 to enhance ease of doing business, ease of raising capital and reduce the compliance burden for startups.

Prakash, however, said there was no centralised information available on money raised by startups in the country.

He also talked about various schemes and benefits launched by the government since 2016 to support startups. These firms are provided an 80 percent rebate in filing patents and a 50 percent discount in the filing of trademark vis-a-vis other companies, he said.

The government bears the entire fees of the facilitators for any number of patents, trademarks or designs, and startups only bear the cost of the statutory fees payable.

Startups are allowed to self-certify their compliance under nine labour and three environment laws for a period of three to five years from the date of incorporation, the minister said. Startups incorporated on or after 1st April 2016 can apply for income tax exemption.

The recognised startups that are granted an inter-ministerial board certificate are exempt from income tax for three consecutive years out of 10 years since incorporation, the minister said.

The Economic Survey 2022 released earlier this year showed that Delhi had replaced Bengaluru as India’s startup capital by adding more startups in the last two years.

The trend is also reflected in startups that listed on stock markets, including Zomato, Policybazaar, Delhivery and Oyo.

More than 5,000 recognised startups were added in Delhi, while 4,514 added in Bengaluru between April 2019 and December 2021, the survey said, which considered startups registered under the government’s Department for Promotion of Industry and Internal Trade. Maharashtra had the highest number of recognised startups at 11,308.

India also created 44 unicorns, private companies valued at over a billion dollar or more, in 2021, surpassing previous years and catapulting the country past the UK to number three slot trailing the US and China. The US and China added 487 and 301 unicorns in 2021, respectively.
Deepsekhar Choudhury Deepsekhar covers tech and startups at Moneycontrol. Tweets at @deepsekharc
first published: Jul 20, 2022 02:24 pm