New Delhi: India’s startup ecosystem has experienced remarkable growth over the past decade, solidifying its position as the third-largest startup ecosystem in the world. As of December 31, 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) has issued 1.57 lakh certificates recognizing startups, marking a significant milestone for India’s entrepreneurial landscape. This dynamic ecosystem, driven by over 100 unicorns, continues to redefine innovation across various sectors, from technology to healthcare. Major startup hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have led the transformation, with smaller cities increasingly emerging as key players, contributing to over 51% of startups from Tier II and III cities.
Key Government Schemes and Initiatives
Startup India
Launched in January 2016, Startup India has been the cornerstone of the government’s efforts to foster innovation, generate employment, and drive economic growth. Through various schemes, it has empowered startups to scale and succeed by offering support in areas like compliance simplification, self-certification, and tax exemptions for three years.
Progress:
- Startup Growth: The number of DPIIT-recognized startups surged from 502 in 2016 to 1,57,706 in December 2024.
- Job Creation: Startups have created over 17.28 lakh jobs, with IT Services leading the charge at 2.10 lakh jobs, followed by Healthcare & Lifesciences (1.51 lakh) and Professional & Commercial Services (96,474).
- Women-Led Startups: 75,935 startups reported having at least one woman director, reflecting the growing influence of women entrepreneurs in India.
Startup India Seed Fund Scheme (SISFS)
Launched in 2021 with a corpus of ₹945 crore, the SISFS supports startups at various stages, from proof of concept to market entry. The scheme has benefitted 2,622 startups, disbursing ₹467.75 crore as of December 2024.
Fund of Funds for Startups (FFS)
Introduced in 2016 with a corpus of ₹10,000 crore, FFS aims to increase access to domestic capital by funding Alternative Investment Funds (AIFs), which, in turn, invest in startups. By December 2024, ₹6,886 crore was committed to SIDBI, resulting in investments of ₹21,276 crore across 1,173 startups.
Credit Guarantee Scheme for Startups (CGSS)
The CGSS offers credit guarantees to DPIIT-recognized startups, ensuring easier access to loans. By January 3, 2025, the scheme had guaranteed 260 loans worth ₹604.16 crore to 209 startups, including ₹27.04 crore allocated to 17 women-led startups.
Additional Government Initiatives
Atal Innovation Mission (AIM)
Launched in 2016 by NITI Aayog, AIM promotes innovation through initiatives like Atal Tinkering Labs in schools and Atal Incubation Centres (AICs). By December 2024, 3,556 startups were incubated at 72 AICs, creating 41,965 jobs.
MeitY Startup Hub (MSH)
Aimed at fostering innovation in tech, the MeitY Startup Hub (MSH) connects stakeholders across the innovation ecosystem, including incubators and Centres of Excellence in emerging technologies. It supports 5,310+ startups, 495+ incubators, and 328+ labs, ensuring synergy and resource sharing.
A Bright Future Ahead
India’s startup ecosystem has undergone a transformation, not only in scale but also in the diversity of industries it covers. With over 1.57 lakh startups and the creation of over 17 lakh jobs, the nation has become a global leader in innovation. The government’s comprehensive support, through initiatives like Startup India, SISFS, FFS, and sector-focused programs such as AIM and MSH, has played a pivotal role in this success.
Looking ahead, the future of India’s startup ecosystem is filled with promise, with continued growth expected in the coming years. The government’s unwavering commitment to nurturing entrepreneurship and innovation ensures that India’s startup revolution will keep reaching new heights, driving economic growth and empowering future generations of entrepreneurs.
