India has 1.97 lakh DPIIT-recognised startups, but only 4,147, a mere 2%, qualify for the government’s top profit-linked tax exemption, according to new Parliamentary data. While startups have created 21.11 lakh jobs and secured ₹47,500 crore in GeM orders, the strict eligibility norms mean the vast majority never access this flagship tax benefit, raising questions about policy reach.