34K Startups Gave Direct Employment To 4.2L: Government Data

BENGALURU: Emerging as a major job creator, more than 34,000 startups, as of September 2020, gave direct employment of over 4.2 lakh people. According to data released by the ministry of commerce and industry, the department for promotion of industry and internal trade has so far recognised 36,106 startups, of which 34,267 have self-reported employment data. The 4.2 lakh count is a significant increase from the 1.9 lakh such jobs startups created in 2016. Guruprasad Mohapatra, secretary, DPIIT, told TOI, “The figures have been provided by startups registered with us. The registration enables them to avail some direct and indirect tax benefits. It also helps them gain access to other departments and ministries of the central government. But yes, not all startups register with us.” The latest data trend shows that 36% of the jobs were created in Maharashtra and Karnataka, which are also states that have the most number of startups, followed by Delhi. V Balakrishnan, chairman, Exfinity Ventures, a venture capitalist firm that invests in startups, said, “The overall number is positive, but new employment is happening only in patches. The startup job environment is not so bad, but it is not as good as last year as firms are more concerned about fundraising and business management.”