Indian Startups Defy Winter, Job Creation Soars in 2022
Start-ups create jobs but also face layoffs: The ups and downs of India’s startup industry
2 February 2023
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Tanisha
Start-ups Created Close to 1.6 Lakh Jobs in 2020, 2 Lakh Jobs in 2021, and 2.7 Lakh Jobs in 2022 with Expected Joint Layoffs of Over 20,000 Workers in 2022.
From 452 in 2016 to 84,012 in 2022, the number of start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) has grown.
From 452 in 2016 to 84,012 in 2022, the number of start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) has grown. This includes over 1,000 start-ups in the agricultural technology sector and over 500 engaged in millet value chains, it noted. According to the Economic Survey for 2022-23, which was presented to Parliament on Tuesday, the number of direct jobs created by these new-age firms increased 36% to about 2.7 lakh last year, even as Indian start-ups went on a hiring binge that began in 2022 and has continued well into the beginning of the current year. According to the survey, Tier II and Tier III cities account for almost 48% of all new businesses in the nation.
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According to the survey, the rate of employment creation by start-ups in 2022 was 64% greater than the average of the three years prior. According to the most recent report, start-ups generated close to 1.6 lakh jobs in 2020, close to 2 lakh jobs in 2021, and close to 2.7 lakh jobs in 2022—a year in which start-ups are expected to have jointly laid off more than 20,000 workers. According to the survey, the rate of employment creation by start-ups in 2022 was 64% greater than the average of the three years prior. According to the Survey, employment and the labor market have generally improved beyond pre-Covid levels, and the rise of the female workforce and the fall in school dropout rates will support socioeconomic growth.
The Labour Bureau performed a survey, and it found that from January to March 2022, manufacturing employed 122.5 lakh people, education had 69 lakh, and IT/BPO employed 38.3 lakh. In addition, the survey noted that the net addition to the Employees' Provident Fund Organization (EPFO) is "steadily moving upward after fast rebounding from Covid-19," with a significant amount coming from young people
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