Startup India: Over 6,000 Startups Registered Under PM Modi's Pet Scheme Shut So Far

The Ministry of Corporate Affairs (MCA) on Tuesday reported that 6,019 startups recognised under the government’s Startup India programme have been dissolved or struck off, while another 59 have turned inactive or dormant, as of 18 July 2025. The data was shared by Jitin Prasada, Minister of State in the Commerce Ministry in the Lok Sabha.

The data comes at a time when total recognised startups under the Department for Promotion of Industry and Internal Trade (DPIIT) have crossed 1.87 lakh as of 19 August.

“Startup closures that 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,” Prasada said in a written reply to a question.

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As per the data, total startup closures represent 3 per cent of startup registrations with the government so far. Closures, however, is not seen as an unusual trend as a certain level of churn is typical in a growing ecosystem and should be seen alongside the steady increase in new registrations.

As of December last year, Maharashtra recorded the highest count of closed startups with 929 entities shut, followed by 644 in Karnataka, 593 in Delhi, 487 in Uttar Pradesh, 301 in Telangana, and more.

“To ensure the sustainability and growth of startups, the Government unveiled an action plan for startups comprising of schemes and incentives envisaged to create a vibrant startup ecosystem in the country,” Prasada said. 

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The action plan comprises of 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”.

Meanwhile, as per the private data on startup closures by data intelligence platform Tracxn, over 28,000 startups have been shut between 2023 and 2024 -- 15,921 in 2023 and 12,717 in 2024, Financial Express reported in December last year. This was more than a 12-fold increase from 2,300 shutdowns in the previous three years -- 2019-2022.