4-5% of the country’s GDP will be contributed by Indian startups in the coming future

The startup ecosystem in India has been growing rapidly compared to other countries. Various government schemes have contributed to the relatively higher success rate of new startups being formed. About 84,012 startups were recognized in India by end of November this year. The government also launched the Startup India initiative in 2016 and was well implemented which gave a boost to startups. “Startups are prone to failures is a very high probability. Though I must say, the success rate of startups in India is relatively higher than the rest of the world” said Piyush Goyal in the Lok Sabha during Question Hour.

With the number of startups growing from 452 in 2016 to 84012 in 2022, certain entities have decided to extend support to these startups at various stages. These entities include The Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). The Startup India Seed Fund Scheme has been approved for four years from 2021-22 and will be implemented with a corpus of Rs 945 crore. A report by StrideOne (NBFC a non-banking financial company), suggested that the startup ecosystem is estimated to contribute to 4-5% of India’s GDP in the coming 5 years.

Ishpreet Singh Gandhi founder of StrideOne said “This rise of startups has made India the third-largest startup ecosystem in the world and has significantly impacted the Indian economy showcasing the ability to contribute approximately 4-5% to the GDP of India.”