Startup India initiative created over 560,000 jobs since 2016, says govt

By: Subhayan Chakraborty

The Startup India initiative has created an estimated 187,004 direct jobs since its inception in 2016, with the number of related indirect jobs taking the total tally to more than 560,000, the government has claimed.

“Start-ups create valuable jobs. 187,004 jobs have been reported by 16,105 Department for Promotion of Industry and Internal Trade (DPIIT)-recognised start-ups, i.e., more than 11 direct jobs per start-up. With each direct job leading to 3x indirect jobs, the total jobs created by these start-ups are estimated at more than 560,000,” Ramesh Abhishek, DPIIT secretary, said on Tuesday.

However, the figures are self-reported by start-ups and not verified by the government. This job growth has come at a rough cost of more than Rs 2,500 crore disbursed by the government to fund start-ups.

In 2016, the Centre had established a Rs 10,000-crore fund of funds under the Small Industries Development Bank of India (Sidbi) to meet the financial needs of start-ups. 

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“From the fund of funds, Sidbi has committed Rs 2,570 crore to 45 venture funds, catalysing investments of more than Rs 25,000 crore. 244 start-ups have received funding of Rs 1,561 crore,” Abhishek tweeted.

Abhishek’s comments assume significance as the Narendra Modi government has received criticism for not being able to shore up employment. Last week, the first periodic labour force survey officially showed the unemployment rate at a 45-year-high of 6.1 per cent in 2017-18.

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