DPIIT Reforms: 2,50,046 Startups and USD 843 Billion FDI

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry set out, on 27 October 2026, the results of its shift from a permission-based to a trust-based way of regulating business. The account covers startups, compliance pruning, labour and licensing law, foreign investment and single-window clearances.

Startup India

DPIIT has recognised 2,50,046 startups, which report over 25.42 lakh jobs spread across more than 770 districts and 56 industries. Of these ventures 52 per cent come from outside the metros and 48 per cent have at least one woman director. Yearly recognitions rose from 34,200 in FY 2023-24 to 36,440 in FY 2024-25. The Startup India Seed Fund Scheme has approved Rs 775.67 crore for 4,194 startups through 244 incubators, while the Fund of Funds for Startups has seen SIDBI commit Rs 12,623 crore to 166 Alternative Investment Funds, which in turn put Rs 28,254 crore into 1,475 startups. Under the Credit Guarantee Scheme for Startups, 532 loans worth Rs 1,662.71 crore have been guaranteed, and cover per borrower has been doubled from Rs 10 crore to Rs 20 crore.

Compliance and decriminalisation

A total of 47,957 compliances have been reduced across central ministries and states. Of these 22,290 were digitised, 16,141 simplified, 5,255 decriminalised and 4,271 removed altogether. The Jan Vishwas Acts have taken criminal liability off 900 provisions of central laws, 183 provisions in 42 Acts in 2023 and 717 provisions in 79 Acts in 2026. States have carried out more than 9,700 reforms over seven editions of the Business Reforms Action Plan, and the District edition extends 222 reforms to collectorates and urban local bodies.

Labour, licensing and investment

• Twenty-nine central labour laws now sit inside four Labour Codes; the threshold for prior permission to lay off or close has moved from 100 to 300 workers.
• Licences of the Petroleum and Explosives Safety Organisation are valid for ten years instead of five, and the Boilers Act, 2025 has replaced the Act of 1923.
• Seventeen sectors have moved to the automatic route for FDI; the defence limit on that route is 74 per cent for fresh industrial licences and insurance was opened to 100 per cent in 2026.
• India drew USD 843 billion of FDI from FY 2014-15 to FY 2025-26, which is 169 per cent above the USD 313 billion of the previous twelve years, with a peak of USD 94.53 billion in FY 2025-26.

National Single Window System

The National Single Window System has taken 15,49,850 applications, registered 5,76,778 businesses and delivered over 8.5 lakh approvals. It carries 3,779 live services, made up of 327 central and 3,452 state services, against 142 central approvals at its soft launch in September 2021, and it works in 22 Indian languages.