New data presented in the Lok Sabha has revealed the current state of Chandigarh's startup ecosystem, showing significant growth over the past decade but also highlighting areas of concern raised by a local Member of Parliament.
A Decade of Startup Growth in the City Beautiful
According to figures shared on Tuesday, the Union Territory of Chandigarh has seen 633 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as of October 31, 2025. This marks a substantial increase from less than a decade ago when the city had fewer than 10 such recognised startups in 2016.
The rise in entrepreneurial activity has had a direct impact on employment. Jobs generated by these DPIIT-recognised startups have surged from under 300 in 2017 to 6,260 by October 2025. Furthermore, the number of these startups with at least one woman director or partner has seen a remarkable jump, increasing from under 10 in 2017 to 297 at present.
Policy Delay and Parliamentary Scrutiny
The statistics were disclosed in response to questions posed by Member of Parliament Manish Tewari. Tewari also sought an explanation for why the Chandigarh administration took over seven years to formally launch a dedicated local startup policy. The journey from the initial draft in 2018 to the formal notification of the Chandigarh Startup Policy on April 29, 2025, was questioned, especially given the earlier rollout of the national Startup India initiative.
In its response, the department stated that the UT administration initially concentrated on promoting the national Startup India Policy rather than creating a separate local framework. Subsequently, driven by evolving local requirements and central government directives, the administration embarked on formulating its own policy, which culminated in the April notification.
Implementation Hurdles and Future Roadmap
Since the policy's notification, the UT administration has been working on the necessary groundwork for its execution. This includes framing implementation guidelines, rules for disbursing incentives, and developing an online application system. However, no financial incentives have been distributed to startups so far.
The delay in disbursement is attributed to the ongoing finalisation of operational guidelines and committee structures. Officials stated that these steps are crucial to ensure transparency and the proper utilisation of the Rs 10 crore annual corpus allocated under the policy.
Expressing his views on the data, MP Manish Tewari said, "It is disappointing that there are only 633 startups in Chandigarh and no unicorn has been created so far, notwithstanding the fact that Chandigarh is an academic and institutional hub." His comment underscores the expectation for greater output from a city known for its educational institutions and skilled workforce.
The unfolding scenario presents a mixed picture for Chandigarh. While the quantitative growth in startup numbers and job creation is evident, the delayed policy formulation and the current lack of a unicorn startup point to the challenges that remain in fully harnessing the region's entrepreneurial potential.
