6,789 recognised startups closed till January this year, IT sector records highest number

New Delhi: Union Minister of State for Commerce and Industry Jitin Prasada on Wednesday said that a total of 6,789 recognised startups have closed, with the IT sector recording the highest number.

"As on 31st January 2026, a total of 2,12,283 entities have been recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT). 6,789 recognised startups are categorised as closed (i.e., dissolved/struck-off), as per the Ministry of Corporate Affairs (MCA)," Prasada informed the Lok Sabha in his written reply.

The sectors with the maximum number of startup closures include: IT Services: 875, Health and Life Sciences: 553, Education: 491, Food and Beverages: 320 and Agriculture: 301.

Replying to Raichur Congress Lok Sabha member G Kumar Naik, the Minister said startup closures 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.

To ensure the sustainability and growth of startups, the government has unveiled an action plan comprising schemes and incentives. These include measures to improve access to capital along with ecosystem interventions to sustain entrepreneurship and innovation, he said.

The Centre has launched several schemes to support startups at various stages of their business cycle, including the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS), Prasada said.