Startup India at a Decade: How Entrepreneurship Became a Nationwide Growth Engine

Over the past decade, the Startup India initiative has transformed entrepreneurship from a niche urban phenomenon into a nationwide movement, positioning startups as a central pillar of India’s growth strategy. What began as a bold policy announcement has evolved into one of the world’s largest and most inclusive startup ecosystems, aligned closely with Prime Minister Narendra Modi’s vision of “Viksit Bharat 2047″—a developed, innovative and self-confident India.

From a Red Fort vision to a national mission

When the Prime Minister announced Startup India from the ramparts of the Red Fort on Independence Day in 2015, the ambition was explicit: entrepreneurship should take root in every district and every block of the country. This vision was institutionalised with the formal launch of Startup India on January 16, 2016, by the Department for Promotion of Industry and Internal Trade (DPIIT).

The idea was not merely to create new companies, but to channel youthful entrepreneurial energy into job creation, innovation and long-term economic growth. A decade on, entrepreneurship has indeed become a mass movement, reshaping India’s economic landscape and emerging as a new engine of growth.

Scale and sectoral depth of India’s startup ecosystem

India today hosts one of the world’s largest startup ecosystems, with more than 2,00,000 DPIIT-recognised startups. In 2025 alone, over 49,400 startups were recognised—the highest annual addition since the initiative began.

These ventures are energising critical sectors of the economy. IT services, healthcare and life sciences, education, agriculture and construction account for the highest concentration of startups. At the same time, innovation has spread across more than 50 other industries, including climate technology and infrastructure, reflecting both resilience and alignment with national development priorities.

Innovation, AI and the rise of deep tech

A defining shift over the past decade has been the growing emphasis on innovation and deep technology. India’s rank in the Global Innovation Index has climbed sharply—from 81st in 2015 to 38th last year—signalling improved research output, patenting and technological capability.

Startups are increasingly active in artificial intelligence, building on the Prime Minister’s Digital India push. Institutional support for deep tech has expanded with the creation of the Anusandhan National Research Foundation, the launch of the India AI Mission, and the Research Development and Innovation Scheme. Beyond AI, Indian startups are innovating in aeronautics, aerospace and defence, robotics, green technologies, the Internet of Things and semiconductors.

This shift is reflected in intellectual property creation. Indian startups have filed over 16,400 patent applications, pointing to a stronger focus on original innovation, long-term value creation and global competitiveness.

Pan-India entrepreneurship and inclusion

One of the most striking features of Startup India has been its geographic spread. From just four states with dedicated startup policies in 2016, India now has more than 30 States and Union Territories with formal startup frameworks. DPIIT-recognised startups are present in every state and UT, underscoring deep institutional support and grassroots participation.

Inclusion has been central to this expansion. More than 45% of recognised startups have at least one woman director, making women-led entrepreneurship a major strength of the ecosystem. Equally important, around half of India’s startups are based in non-metro cities, highlighting the rising role of Tier II and Tier III cities as engines of innovation, employment and local economic transformation.

From local innovation to global markets

As Indian startups scale, global markets are increasingly within reach. Startup India has built 21 international bridges and two strategic alliances to facilitate market access, collaboration and expansion in key economies such as the UK, Japan, South Korea, Sweden and Israel. Over 850 startups have already benefited from these arrangements.

Startups are now a regular part of India’s economic diplomacy. In recent visits to countries such as Sweden, Switzerland, New Zealand and Israel, Indian startups featured prominently in business delegations, showcasing domestic innovation while learning from advanced innovation ecosystems abroad.

Reforms, funding and market access

Policy reform has been critical in enabling this growth. Eligible startups can avail of a tax holiday for three consecutive years within their first decade, with over 4,100 startups already receiving eligibility certificates. More than 60 regulatory reforms have reduced compliance burdens, eased capital raising and strengthened domestic institutional investment.

Key measures such as the abolition of the angel tax and the opening up of long-term capital pools to Alternate Investment Funds have reinforced the funding ecosystem. Financial support has also been scaled up. Over ₹25,500 crore has been invested through the Fund of Funds for Startups, benefiting more than 1,300 enterprises. Collateral-free loans worth over ₹800 crore have been guaranteed under the Credit Guarantee Scheme for Startups, while the Startup India Seed Fund Scheme, with an outlay of ₹945 crore, supports early-stage innovation from proof of concept to market entry.

Market access has been another priority. Through the Government e-Marketplace, over 35,700 startups have been onboarded, securing more than five lakh orders worth over ₹51,200 crore.

A cultural shift towards risk and enterprise

Perhaps the most enduring impact of Startup India lies beyond numbers. For decades, Indian families encouraged children to aim for a narrow set of careers—government service, engineering or medicine. Startups have helped trigger a cultural shift. Increasingly, young Indians aspire to become job creators rather than job seekers, and entrepreneurial ambition is gaining social acceptance and respect.

India’s startup story is ultimately one of confidence—confidence in young entrepreneurs, in policy-led ecosystem building, and in India’s ability to innovate for the world. As the country moves towards its goal of becoming a developed nation by 2047, startups are set to remain central to building a prosperous, inclusive and globally competitive India.