Tax incentive for startups increased by one year: FM Sitharaman

In a relief to startups, Finance Minister Nirmala Sitharaman has announced an extension of one year for the incentives provided to them.

“Startups have emerged as a growth driver for the economy. Tax incentives for startups increased from three years to four years of incorporation, in view of the pandemic,” the minister said while announcing the Union Budget 2022.

In 2021, emerging economy companies raised a record $42 billion through global and domestic funds. The number of Unicorns, companies with a billion-dollar valuation, almost doubled with 42 new ones joining the coveted club in the year, taking the total count to 83.


The Economic Survey released on Monday had said that India now has more than 61,400 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). At least 14,000 recognised startups were added in the 2021-22 fiscal, it said.

The survey said that 555 districts in India had at least one new startup, highlighting that startups in India have grown remarkably over the past six years, with most of them in the IT/knowledge-based sectors.

Delhi has become the startup capital of India, outdoing Bengaluru on the number of startups added since April 2019, according to the Economic Survey 2022.

The survey said more than 5,000 recognised startups were added in Delhi while 4,514 startups were added in Bengaluru between April 2019 and December 2021. With a total of 11,308, Maharashtra has more recognised startups than any other state.