Startup India in Numbers (October 2026): What DPIIT's Latest Figures Mean for Founders

On 27 October 2026 the Department for Promotion of Industry and Internal Trade (DPIIT) published an update on its startup and ease-of-business work (PIB release 2328842). Most of it is a scorecard. A few lines, though, tell a founder where money and orders are actually flowing, and which routes are worth the paperwork.

This post goes through the startup-relevant figures one scheme at a time. Every number below is from that release unless another source is named; the averages are our own arithmetic on those numbers.

Figures are as published by PIB on 27 October 2026. Scheme rules change, so check the official portal before you apply.

The headline numbers at a glance

DPIIT recognition: still the entry ticket

There are now 2,50,046 DPIIT-recognised startups. Recognitions per year rose from 34,200 in FY 2023-24 to 36,440 in FY 2024-25.

Why it matters to you: recognition is the precondition for most of what follows. The Seed Fund, the Credit Guarantee Scheme for Startups, the 80-IAC tax holiday and the GeM relaxations are all tied to it. If you haven't got it yet, start there: how to apply for DPIIT startup recognition.

Two other figures are worth noting. 52% of recognised startups are from non-metro cities, and 48% have at least one woman director. A founder outside a metro is not an exception in this system.

Startup India Seed Fund Scheme: ₹775.67 crore to 4,194 startups

Under the Seed Fund Scheme (SISFS), ₹775.67 crore has been approved for 4,194 startups across 32 States/UTs, through 244 incubators. Of these, 2,147 are women-led and 2,356 are from Tier-II and Tier-III cities.

On average that is about ₹18.5 lakh per startup (₹775.67 crore ÷ 4,194). That is an average across grants (up to ₹20 lakh) and debt or convertibles (up to ₹50 lakh), per the SISFS guidelines, so it isn't the amount you would get.

One caution: the Seed Fund portal closed to new startup applications on 31 May 2026. These numbers describe money already approved, not an open call. Our Seed Fund guide explains how the scheme worked and what to do if it reopens, and the SISFS listing will show any change in status.

Fund of Funds: SIDBI money reaches you through VC funds

Under the Fund of Funds for Startups (FFS), SIDBI has committed ₹12,623 crore to 166 Alternative Investment Funds (AIFs). Those AIFs have invested ₹28,254 crore in 1,475 startups.

You can't apply to the Fund of Funds. SIDBI puts money into SEBI-registered AIFs, and those funds invest in startups on their own terms. So the practical route is to pitch the funds themselves. The AIFs invested a little over twice what SIDBI committed (₹28,254 crore against ₹12,623 crore), because the funds also raise money from other investors (PIB describes the scheme as crowding in private capital). Browse active investors on our investors page.

Credit Guarantee Scheme for Startups: 532 loans, ₹1,662.71 crore

The Credit Guarantee Scheme for Startups (CGSS) has guaranteed 532 loans worth ₹1,662.71 crore to startups that together employ 41,637 people. That is an average of about ₹3.1 crore per loan.

The release repeats two changes that matter if you are borrowing:

• Cover per borrower doubled from ₹10 crore to ₹20 crore.
• Annual guarantee fee cut to 1% for startups in the 27 Champion Sectors.

Your lender applies for the guarantee, not you, and the CGSS notification makes the lender pay the fee. It doesn't say whether the lender passes it on, so ask before you sign. Our CGSS guide covers eligibility and the application route, and CGSS vs CGTMSE explains which guarantee fits your loan. You can also see the CGSS listing.

Section 80-IAC: only 4,467 startups hold the certificate

4,467 startups hold the Section 80-IAC certificate of eligibility. That is under 2% of the 2,50,046 recognised startups.

The certificate lets an eligible private limited company or LLP claim a 100% deduction on profits for any three consecutive years within its first ten years from incorporation (DPIIT Tax Playbook, May 2026). From 1 April 2026 the same benefit sits in Section 140 of the Income-tax Act, 2025. It only helps once you are profitable, and it needs a separate application to the Inter-Ministerial Board after recognition. If you expect profits in the next few years, it's worth reading how to apply for 80-IAC.

The release also lists other tax and investment changes among its 63 regulatory reforms: angel tax abolished, long-term capital gains tax harmonised for listed and unlisted shares, and insurance companies, EPFO, superannuation and gratuity funds allowed to invest in AIFs.

GeM: government buyers are placing real orders with startups

Startups registered on the Government e-Marketplace (GeM) grew from 7,929 in January 2021 to 43,260. They have delivered 6.23 lakh orders worth ₹68,105 crore to public buyers, an average of about ₹10.9 lakh per order.

DPIIT-recognised startups are exempted from prior-experience, prior-turnover and Earnest Money Deposit (EMD) requirements, as long as they meet the quality and technical specifications (Startup India public procurement page). If you sell a product or service a ministry, PSU or state department buys, GeM is a sales channel, not just a compliance portal.

State support and incubators

• Dedicated startup policies now cover 32 States/UTs, up from four in 2016. Check your state's incentives on our subsidies page.
• 104 new incubators have been set up across 17 States/UTs. Browse them on our incubators page.

Less paperwork: what changed on compliance

Not every line is about funding, but several reduce the work of running a company:

• 47,957 compliances reduced across Central Ministries and States/UTs: 22,290 digitised, 16,141 simplified, 5,255 decriminalised and 4,271 eliminated.
• 900 provisions decriminalised under the Jan Vishwas Acts: 183 provisions across 42 Acts in 2023 and 717 across 79 Acts in 2026.
• Labour Codes: 29 Central labour laws consolidated into four Codes. Contract-labour licensing now starts at 50 workers (was 20), and a factory using power is covered from 20 workers (was 10). A 30-day compliance notice is now required before legal action.
• National Single Window System (NSWS): 3,779 Central and State services are live, available in 22 Indian languages. Its Know Your Approvals module lists the Central and State approvals that apply to your business. NSWS is also where you file for DPIIT recognition.

What to do with this

1. Not recognised yet? Apply for DPIIT recognition first. Almost every route above depends on it.
2. Need working capital or a term loan? Ask your bank or NBFC about CGSS cover before offering collateral.
3. Selling to government? Register on GeM and use the startup relaxations.
4. Profitable soon? Apply for the 80-IAC certificate early.
5. Raising equity? The Fund of Funds money reaches you through AIFs, so pitch the funds.

To find open programmes that match your stage and sector, browse government schemes and business loans.

FAQ

Is the Startup India Seed Fund Scheme open in October 2026? No. The Seed Fund portal closed to new startup applications on 31 May 2026. The ₹775.67 crore figure is money already approved to 4,194 startups.

How many startups are recognised by DPIIT? 2,50,046 as of the PIB release of 27 October 2026.

Can I apply directly to the Fund of Funds for Startups? No. SIDBI invests in SEBI-registered AIFs, and those funds invest in startups. You apply to the funds.

What is the maximum CGSS guarantee per borrower now? ₹20 crore, doubled from ₹10 crore. The annual fee is 1% for startups in the 27 Champion Sectors.

How many startups have the 80-IAC tax exemption? 4,467 startups hold the Section 80-IAC certificate of eligibility.

Cover photo: Musemind UX Agency on Unsplash