The Economic Survey 2023 has revealed that young and upcoming companies have created way more jobs this year.
The Survey states that in the past year, direct jobs created by new companies have risen by 36 percent to 269,000.
Job Creation By Startups in India Increased by 36%
The survey has also revealed that the number of recognized startups in India has increased. The number was 452 in 2016 which rose to 84012 in 2022. The report also states that 48 percent of the startups in India are from Tier 2 and 3 cities.
According to the survey, startups will create jobs at a rate that is 64 percent higher in 2022 than it was on average over the previous three years.
According to data from the ministry of commerce and industry, 1.46 lakh startup jobs were created in Maharashtra between January 2016 and July 2022.
Karnataka, which is home to Bengaluru’s tech hub, came in far behind with more than 1.03 lakh jobs. With 87,643 jobs, Delhi comes in third, followed by Uttar Pradesh with 67,694.
13,519 Startups Registered Last Year; Maharashtra Leads
With 13,519 startups registered in the last six years, Maharashtra once again led the way, followed by Delhi (8,636), Uttar Pradesh (6,654), and Karnataka (8,881).
The Economic Survey 2023 also mentioned startup flipping as one of its most crucial points. “Flipping” typically occurs in the early stages of startups and is motivated by the financial, tax, and personal preferences of the founders and investors. Because the primary market for their product is abroad, some businesses choose to “flip.”
According to the survey, startups are now considering “reverse-flipping,” or returning to India, after it was revealed that the fintech unicorn PhonePe’s relocation cost its investors roughly Rs 8,000 crore.
It also recommended steps to speed up reverse-flipping, including tax reform for employee stock options (ESOPs), capital gains tax regimes modelled after those in Singapore, the United Arab Emirates, and the Netherlands, and capital flow regulations similar to those in the US and Singapore.
