5,000 startups registered under Startup India closed so far: Govt data

Out of 1.52 lakh startups recognized under the Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), 5,063 startups—around 3.3% of the total—have been shut down, according to data shared by the Ministry of Corporate Affairs as of December 5, 2024. This information was disclosed by Jitin Prasada, Minister of State in the Commerce Ministry, in a written response to the Lok Sabha.

Maharashtra reported the highest number of closures, with 929 startups ceasing operations, followed by Karnataka (644), Delhi (593), Uttar Pradesh (487), and Telangana (301).

Despite these closures, startups have significantly contributed to employment generation, creating over 16.6 lakh direct jobs across 55+ industries as of October 31, 2024. IT services led the job creation with 2.04 lakh roles, followed by healthcare and life sciences (1.47 lakh), professional services (94,060), education (90,414), and other sectors such as construction and food & beverage.

For MSMEs, 61,469 units registered under Udyam have shut down since the portal’s launch on July 1, 2020. Recent months have seen a spike, with over 12,000 MSMEs closing in just four months, increasing the tally from 49,342 closures in July 2024.