Lok Sabha updated on startup funding schemes
The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 197,692 entities as startups under the Startup India initiative as of 31 Oct 2025, Minister of State for Ministry of Commerce & Industry, Jitin Prasada, told Lok Sabha through a written reply on 2 Dec.
The Government has not observed any increase in startup closures, he added. Closures that do occur are generally influenced by factors such as the viability of the business model, alignment with market demands, domestic and global economic conditions, the nature of products and services developed, the ability to attract funding, and other business specific considerations.
Startup India is an initiative of the Government which is implementing three flagship Schemes, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) to provide funding opportunities and support startups across sectors at various stages of their business cycle.
FFS has been established with a corpus of Rs.10,000 crore to catalyze venture capital investments and is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs) which in turn invest in startups.
SISFS provides financial assistance to seed stage startups through incubators. SISFS is implemented from 1st April 2021 with a corpus of Rs.945 crore.
CGSS is implemented for enabling collateral free loans to startups through eligible financial institutions. CGSS is operationalized by the National Credit Guarantee Trustee Company (NCGTC) Limited and has been operationalized from 1st April 2023, he said. fiinews.com
