This January India’s “Startup India” initiative celebrates nine years in 2025. This marks a significant milestone in fostering entrepreneurship in India. According to the DPIIT data, Over the past nine years, the number of recognized startups has grown dramatically from around 500 in 2016 to more than 159,000 by January 15, 2025. This has made India the third-largest startup ecosystem globally, with over 100 unicorns as of this year. These startups have created over 17.2 lakh direct jobs, significantly contributing to employment and economic growth. The initiative has been instrumental in shifting the paradigm from job seekers to job creators.
This wouldn’t have been possible without Policy Support and Funding from the Government. The government has implemented various supportive policies, including simplified compliance, tax benefits for three consecutive financial years, and funding support through schemes like the Fund of Funds for Startups (FFS) and the Startup India Seed Fund Scheme. Over Rs 13 lakh crore in funding has been secured by startups, showcasing robust support for entrepreneurial ventures.
India’s move towards $10 Trillion economy will be backed by startup ecosystem. In future some of them will be building world class products such as robots or space related products. This transitioning is imperative and much needed for cornering bigger pie of Global GDP by transforming India from a service-based to a product-based economy. Along with startup contribution, this will involves multiple layers of strategic planning, policy reform, and infrastructural development.
India’s economy has been predominantly service-oriented, with a significant part of its GDP coming from IT, BPO, and other service sectors. Moving towards a product-based economy would diversify income sources, reduce vulnerability to global service sector volatility, and potentially increase employment in manufacturing. A strong manufacturing base can position India more competitively on the global stage, especially in sectors like electronics, automotive, pharmaceuticals, and textiles where innovation and product development are key. Manufacturing jobs can offer more tangible employment opportunities, particularly for the semi-skilled and unskilled workforce, helping to address unemployment and underemployment challenges. A product economy encourages research and development, leading to innovations that can be patented and sold globally, enhancing India’s intellectual property landscape.
There’s been a notable increase in startup activity beyond the major urban centers, with more than half of the startups formed in the last nine years emerging from Tier 2 and Tier 3 cities, indicating a democratization of entrepreneurial opportunities across India.
Startups are not just concentrated in IT or e-commerce but have spread across sectors like fintech, edtech, health-tech, agriculture, renewable energy, and space technology, addressing both local and global challenges. To mark the occasion, various events and discussions are organized, including National Startup Day on January 16, which involves policy dialogues, startup showcases, and investor meets. The Startup Policy Forum (SPF) Baithak event is among the highlights, fostering connections between founders, policymakers, and investors.
There’s an emphasis on fostering more social impact startups, with calls for increased collaboration among ecosystem stakeholders to provide enabling policies, patient capital, and mentorship. The vision is to leverage startups for broader economic, social, and environmental benefits, aligning with India’s goal to become a $5 trillion economy.
The Journey of Startup India reflects a significant transformation in India’s entrepreneurial landscape, driven by policy support, increased funding, and a vibrant culture of innovation.
Galactik Views