Today, India has bloomed into the world’s third-largest startup ecosystem, which, as per Inc42 data, has raised more than $158 Bn+ funding between 2014 and 2024
As per government estimates, India is home to more than 1.59 Lakh DPIIT-recognised startups that have created 17 Lakh+ jobs in the country
As per DPIIT data, more than half (51%) of the DPIIT-registered startups in India are from non-metro cities
It was 2015 and the word “startup” wasn’t cool. That year on Independence Day (August 15), Prime Minister (PM) Narendra Modi announced the ‘Startup India’ initiative to encourage entrepreneurship among the youth of India.
Months later on January 16, 2016, the action plan for the scheme was laid down and the roadmap was created to make the country a startup powerhouse and create a conducive ecosystem for entrepreneurs.
Nine years later, as we celebrate the National Startup Day, India has bloomed into the world’s third-largest startup ecosystem, which, as per Inc42 data, has raised more than $158 Bn+ funding between 2014 and 2024.
As per government estimates, India is home to more than 1.59 Lakh Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups that have created 17 Lakh+ jobs in the country.
These startups encompass more than 56 sectors, including IT services, healthcare and life sciences, education, agriculture, construction, among others.
However, what is fascinating is that the startup fever has not remained within the walls of India’s biggest cities but has percolated to smaller towns as well. As per DPIIT data, more than half (51%) of the DPIIT-registered startups in India are from non-metro cities
“More and more startups coming from non-metro cities is a promising sign of India’s entrepreneurial potential. Cities like Jaipur, Indore, Coimbatore, Vadodara, and Surat offer cost-effective talent and opportunities for startups to grow. Meanwhile, government-led incubator programs like T-Hub in Telangana provide significant support to startups, unlocking trillions of dollars in value and reshaping India’s entrepreneurial landscape,” said Murali Bukkapatnam, chair of non-profit TiE’s global 2025 board of trustees.
India is also third in the world in terms of the number of unicorns. As per the DPIIT, the number of billion-dollar valuation companies in India have soared 13X in the past decade to 118 in 2024 from a mere eight in 2015.
These unicorns are cumulatively valued north of $354 Bn, showing the might of the new-age tech ventures that have emerged from India in the past decade.
That said, both central and state governments’ push for local startups goes much beyond just numbers and tall speeches. More and more states now view startups as enablers of job creation and shoring up demand.
For instance, just four states had dedicated startup policies in 2016. This number has grown to 31 states and union territories (UTs) today, offering a window into how startups have found favour with top authorities and regulatory bodies.
Beyond the policy push, the Centre has also onboarded many startups on platforms like Government e-Marketplace (GeM) to streamline its procurement and offer them a platform to sell their offerings directly without middlemen. As per the DPIIT, 27,208 of the 1.59 Lakh recognised startups have listed themselves on GeM and have delivered 3.53 Lakh orders worth INR 30,825 Cr as of October 2024.
On top of this, nearly half (48%) of the DPIIT-recognised startups have at least one woman director.
While the past decade has been nothing short of remarkable, India’s top founders see much scope for improvement.
Moglix cofounder and CEO Rahul Garg told Inc42 that favourable policy and capital enablement, as well as crackdown on misuse of new-age technologies, would be pivotal to the further growth of Indian startupsespecially AI-focussed, in the near future.
Meanwhile, EaseMyTrip cofounder Rikant Pittie said that the Centre should focus on streamlining regulatory frameworks and reducing compliance burdens, which will allow startups to operate more efficiently.
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