Gujarat’s Startup Industry Ranks 2nd in Generating Employment

Gujarat’s thriving entrepreneurial spirit and rapidly growing startup ecosystem have positioned the state as a significant contributor to job creation. In 2023 alone, startups in Gujarat employed 48,138 individuals, marking the state’s second-highest job creation in the country, trailing only Maharashtra, where startups generated 64,974 jobs during the same period.

The Department of Promotion for Industry and Internal Trade (DPIIT) recognized 3,291 startups from Gujarat in 2023, showcasing a remarkable surge in the entrepreneurial landscape. Notably, job opportunities from startups in Gujarat experienced a staggering 103% increase from 23,610 in 2022, highlighting the sector’s rapid growth.

Umesh Uttamchandani, co-founder of DevX, attributes this trend to the maturation and scaling up of startups that emerged during the fiscal year 2018-19. He emphasizes that the initial influx of startups during this period was facilitated by easy access to funds. As these startups evolve, they contribute significantly to job creation by expanding their operations and hiring more individuals.

Furthermore, the acquisition and funding of Gujarat-based startups by global entities play a pivotal role in their accelerated growth. Even in such scenarios, these startups tend to expand rapidly, leading to increased employment opportunities. Growth-stage, technology-driven startups are particularly instrumental in driving job creation, with sectors like Software as a Service (SAAS), direct-to-consumer startups, and semiconductor design startups experiencing substantial hiring.

Over the last five years, from 2019 to 2023, a total of 8,619 startups from Gujarat gained recognition from DPIIT. These startups collectively provided employment to approximately 1.04 lakh people during this period. Notably, this growth in employment occurred despite challenges posed by the ‘funding winter,’ as startups in niche sectors with promising growth potential continued to hire.

Several startups in Gujarat have also proactively increased their hiring efforts by participating in placement drives at educational campuses. This strategic approach ensures a continuous influx of fresh talent into the startup ecosystem, fostering innovation and sustainability.

The article also sheds light on the broader landscape of startup ecosystems in India, mentioning recent developments in Tamil Nadu and Bengaluru. Tamil Nadu’s startup ecosystem has experienced significant growth, witnessing a surge from 2,300 to over 7,600 registered startups in the last two years. Meanwhile, Bengaluru-based electric vehicle startup River secured $40 million in funding to scale its distribution, service network, and expand its presence to multiple cities.

Gujarat’s impressive standing as the second-highest contributor to job creation through startups reflects the state’s commitment to fostering entrepreneurship. The diverse range of startups, coupled with strategic initiatives, positions Gujarat as a key player in India’s evolving startup landscape. As the entrepreneurial ecosystem continues to thrive, it not only fuels economic growth but also provides valuable opportunities for job seekers and innovative minds in the state.

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