DPPIT report: Startup India support, single-window approvals and easier business rules

What happened

The Department for Promotion of Industry and Internal Trade (DPPIT), under the Ministry of Commerce and Industry, issued a release on 27 October 2026. It says the government is moving from a permission-based system towards a trust-based regulatory framework. According to the release, reforms in startup support, compliance reduction, foreign investment and single-window approvals have cut the regulatory burden on businesses.

What startups have received

According to the release, DPPIT has recognised 2,50,046 startups so far. These have created over 25.42 lakh jobs across more than 770 districts and 56 industry sectors. Of these, 52 per cent of startups are located outside metro cities, and 48 per cent have at least one woman director.

Under the Startup India Seed Fund Scheme, Rs 775.67 crore has been approved for 4,194 startups through 244 incubators in 32 states and union territories. This includes 2,147 women-led startups and 2,356 startups from Tier-2 and Tier-3 cities.

Changes in loans and investment

Under the credit guarantee scheme for startups, 532 loans worth Rs 1,662.71 crore have been guaranteed. These startups employ 41,637 people. The guarantee cover per borrower has been raised from Rs 10 crore to Rs 20 crore, and the annual fee for 27 champion sectors has been reduced to 1 per cent.

Under the Fund of Funds scheme, the Small Industries Development Bank of India (SIDBI) has committed Rs 12,623 crore to 166 alternative investment funds. These funds have invested Rs 28,254 crore in 1,475 startups.

How business rules were eased

According to the release, a total of 47,957 compliance requirements have been reduced at the Centre and in states. Of these, 22,290 were digitised, 16,141 simplified, 5,255 decriminalised and 4,271 removed. Through the Jan Vishwas Acts, 900 provisions of central laws have been decriminalised.

Twenty-nine central labour laws have been consolidated into four labour codes. The threshold for prior permission for retrenchment or closure has been raised from 100 to 300 workers. The licence threshold for contract workers has been raised from 20 to 50 workers, and a 30-day notice before legal action has been made mandatory.

How single-window approvals work

The National Single Window system has received 15,49,850 applications, registered 5,76,778 businesses and granted more than 8.5 lakh approvals. The platform offers 3,779 services, including 327 from the central government and 3,452 from state governments. The portal is available in 22 Indian languages.

The ‘Know Your Approvals’ module helps businesses identify at the start which approvals they need. It carries information on more than 8,000 approvals, of which 2,825 are integrated through eKYC.

Who benefits

These reforms directly help people running startups, setting up factories or businesses, or bringing in foreign investment. The release does not mention any separate provision for ordinary citizens, farmers or salaried workers.