State-wise employment generated by startups (K) from 2016 to 2024

Maharashtra stands at the forefront, having generated 312,500 jobs through its startup community, significantly outpacing all other states. This exceptional performance reflects not just the quantity of startups in the state but also suggests that Maharashtra’s ventures may be achieving greater scale and sustainability, possibly due to better access to capital, more mature market opportunities, or supportive business infrastructure in cities like Mumbai and Pune. Karnataka follows with 191,500 jobs, demonstrating Bengaluru’s powerful role as a technology hub that creates substantial employment, particularly in knowledge-intensive sectors. While Karnataka hosts fewer recognised startups than Delhi, it generates more employment, suggesting that Karnataka’s startups may be more mature or operate in sectors with higher employment intensity. Delhi ranks third with 183,300 jobs, reflecting the capital region’s diverse entrepreneurial ecosystem spanning technology, services, and consumer businesses.

Gujarat and Uttar Pradesh have generated nearly equivalent employment (154,900 and 153,100 jobs, respectively) despite Gujarat having fewer recognised startups. This parity suggests Gujarat’s ventures may be more employment-intensive, possibly due to greater representation in manufacturing and traditional industries rather than digital services that might scale with fewer employees. Tamil Nadu and Haryana have also created substantial employment (111,800 and 110,400 jobs respectively), establishing themselves as major contributors to India’s startup-driven job market. The employment impact in tier-two entrepreneurial states reveals interesting variations. Kerala has generated 56,400 jobs despite having fewer startups than West Bengal, which reports 52,200 jobs. This difference suggests Kerala’s startups may be achieving better growth trajectories or operating in more labour-intensive sectors. Similarly, Rajasthan’s impressive 57,000 jobs demonstrate how emerging entrepreneurial ecosystems can create significant employment opportunities with the right support structure.

Some surprising performers emerge in the data: Bihar has generated 29,800 jobs despite its relatively recent entry into the startup ecosystem, suggesting its ventures may be addressing labour-intensive opportunities in agriculture, manufacturing, or local services. Chhattisgarh’s 16,300 jobs similarly demonstrate that states traditionally not associated with innovation economies can still derive substantial employment benefits from entrepreneurial activity. The data for northeastern states showsa modest but meaningful impact, with Assam leading at 13,700 jobs. The relatively limited employment generation in these regions (Manipur: 1,500; Tripura: 1,800) reflects both smaller startup communities and possibly structural challenges related to market access, infrastructure, and investment availability. Union Territories show expected variations based on size and economic development. Chandigarh has generated 5,500 jobs, reflecting its role as a regional hub, while smaller territories like Lakshadweep (30 jobs) and Ladakh (130 jobs) show more modest impacts aligned with their population and economic scale.

What emerges from this comprehensive picture is that startup employment generation does not follow a simple linear relationship with startup numbers—some states achieve better employment outcomes per startup than others. This variation likely reflects differences in sectoral focus, business models, access to scale-up capital, and the maturity of regional ecosystems. The data underscores that while fostering startup creation is important, policies that help these ventures grow, scale, and sustain are equally critical for maximising employment impact. Moreover, the substantial job creation in non-traditional startup states suggests that entrepreneurship can be a powerful economic development tool across diverse regional contexts, not just in established innovation hubs.