Som Prakash, the minister of commerce and industry, informed the Lok Sabha on Wednesday that more than half of recognised startups now originate from non-metropolitan areas.
34,473 or 48% of the 72,993 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) are located in the metropolises of Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune, and Ahmedabad.
Significantly, there were 471 recognised startups in 2016.
DPIIT has recognised startups which are spread across 56 diversified sectors, Prakash added. More than 3,300 DPIIT-recognized startups are active in the climate change field, offering solutions utilising renewable energy and environmentally friendly technology.
Additionally, more than 4,500 startups in fields related to emerging technology, like the Internet of Things (IoT), robotics, artificial intelligence, and analytics, have been recognised.
As part of its numerous initiatives to support the startup industry, the government has established Atal Incubation Centers (AIC) to host entrepreneurs in a variety of industries as part of the Atal Innovation Mission.
In addition, it has started the Atal New India Challenge (ANIC) programme to help companies directly with technology-based ideas that address significant societal and national issues.
However, macroeconomic factors have affected the startup ecosystem, causing cost-cutting, layoffs, and even shutdowns in many cases. These factors include the ongoing Russia-Ukraine conflict, rising inflation, and policy rates.
According to a massive 42 per cent decline from $11.8 billion in Q1 of the year to $6.8 billion in Q2 of 2022 (CY22), a lot of money was raised by Indian startups. Additionally, the number of deals decreased by 22%, from 507 in Q1 to 393 in Q2.
The total funding dropped significantly in May, falling to $1.6 Bn from $3.4 Bn in April. But things got better in June when the Indian startup ecosystem raised $2.65 billion.
Moreover, Open, PhysicsWallah, Purplle, and LeadSquared are four new firms that joined the unicorn club in the second quarter of CY 2022.