27 startups closed in 3 years in Chandigarh, Rajya Sabha told

As many as 27 startups have been closed or dissolved in the past three years in the city as per the data of the Ministry of Corporate Affairs (MCA).

In response to a question raised in the Rajya Sabha about the shutting down of startups during 2023, 2024 and 2025 to date, Jitin Prasada, Minister of State of Commerce and Industry, said 27 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) had closed or dissolved in Chandigarh till November 11, 2025. He further said in the neighbouring states of Haryana and Punjab, 306 and 50 startups had been shut, respectively.

On reasons for shutting down of startups, the minister replied: “Closures are generally influenced by factors such as the viability of the business model, alignment with market demands, domestic and global economic conditions, the nature of products and services developed, the ability to attract funding and other business specific considerations.”

Under the Startup India initiative, the government is implementing three flagship Schemes, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) to provide funding opportunities and support startups across sectors at various stages of their business cycle, he said.

To another question raised in the Lok Sabha about the promotion of startups in the food-processing sector, Ravneet Singh, Minister of State for Food Processing Industries, said five micro food processing enterprises had been approved under the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme in Chandigarh.

About the assistance available under the PMFME scheme, credit-linked capital subsidy was available at 35 per cent of the eligible project cost, with a ceiling of Rs 10 lakh per unit. Support to SHGs for seed capital is available at Rs 40,000 per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs 4 lakh per SHG Federation. Support for Common Infrastructure: Credit linked capital subsidy at 35 per cent subject to maximum of Rs 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure is also available.