Startup India @10 – From Policy Initiative to National Innovation Revolution

Startup India @10

Startup India @10 Latest News

  • On January 16, 2025 (National Startup Day), the Prime Minister of India addressed the startup ecosystem on the 10th anniversary of the Startup India scheme, launched on January 16, 2016. 
  • He highlighted record growth in startup registrations, changing attitudes towards risk-taking, and India’s ambition for global leadership in deep tech and indigenous AI.

The Startup India Scheme

  • It is a flagship Government of India initiative, launched in 2016, to foster a robust ecosystem for innovation and entrepreneurship, transforming India into a nation of job creators through support pillars: 
    • Simplification & Handholding, 
    • Funding Support, and 
    • Incubation & Industry-Academia Partnership. 
  • It offers benefits like tax exemptions, easier compliance, seed funding, and mentorship to eligible startups, promoting economic growth and large-scale job creation. 

Key Highlights of Startup India’s Decade-long Journey

  • Record growth in startup ecosystem:
    • Nearly 44,000 startups registered in 2025 — highest annual addition since inception. India is now the 3rd largest startup ecosystem globally.
    • Growth trajectory: Less than 500 startups, and 4 unicorns in 2014. Over 2 lakh DPIIT-recognised startups, and about 125 active unicorns in 2025.
    • Impact: Startups → Unicorns → IPOs → creates a virtuous cycle of job creation, and innovation-led growth.
  • Cultural shift - Mainstreaming risk-taking:
    • Risk-taking is now socially accepted and respected, unlike earlier stigma. Shift from job-seeking mindset to job-creating mindset.
    • Expansion of entrepreneurship beyond elite families to middle class and poor - boosting entrepreneurial culture, risk capital, and demographic dividend.
  • Government support and funding ecosystem:
    • ₹25,000 crore invested via Fund of Funds for Startups (FFS).
    • Fund of Funds 2.0 (₹10,000 crore) approved in April 2025 to focus on deep tech sectors (Artificial Intelligence (AI), Machine Learning, Quantum technologies, Defence & Aerospace).
    • Objective: To provide patient risk capital due to long gestation periods.
  • Strategic focus on indigenous AI and manufacturing:
    • PM’s call for indigenous AI solutions developed by Indian talent and hosted on Indian servers (data sovereignty).
    • IndiaAI Mission: 38,000+ GPUs onboarded to democratise access to computing power.
    • Emphasis on: Manufacturing, global-standard products, and leadership in new technologies (not mere partnerships) - boosting strategic autonomy, economic security, and data sovereignty.
  • Inclusivity in the startup revolution:
    • Women-led startups: For example, over 45% recognised startups have at least one woman director/partner. India is the 2nd largest ecosystem of women-led startups globally.
    • Geographical spread: Rapid rise in tier-2, tier-3 cities and rural areas. Focus on solving local and grassroots problems - promoting inclusive growth, women entrepreneurship, and regional balance.
  • Regulatory reforms and ease of doing business:
    • Jan Vishwas Act: Decriminalised over 180 provisions - promoting Ease of Doing Business, and trust-based governance.
    • Key enablers: Self-certification under multiple laws, simplified mergers and exits, and reduction in Inspector Raj.
    • Innovation ecosystem strengthened through Atal Tinkering Labs, hackathons, and incubation support.
  • Sectoral breakthroughs enabled by policy support:
    • Defence and space: iDEX enabled startup participation in defence procurement. The space sector opened to private players, with about 200 space startups gaining global approvals.
    • Drone sector: Removal of outdated rules unlocked innovation.
    • Government e-Marketplace (GeM): Nearly 35,000 startups and small businesses are onboarded on GeM, and have received more than 5 lakh orders worth over Rs 50,000 crore, highlighting public procurement reforms.

Challenges and Way Ahead

  • Sustaining funding: During global economic uncertainties. Expand access to risk capital and advanced infrastructure (GPUs, labs).
  • Bridging deep tech talent and R&D gaps: Strengthen deep tech ecosystems through academia–industry collaboration. Integrate startups with national missions (AI, defence, space, climate tech).
  • Ensuring quality scale-up: Enhance domestic manufacturing under startup-led innovation.
  • Managing cybersecurity: Ensuring data governance in AI-driven growth.
  • Avoiding regional and sectoral concentration: Focus on export-oriented and globally competitive startups.

Conclusion

  • As India marks a decade of the Startup India Initiative, the country’s startup ecosystem stands at an inflection point - moving decisively from rapid expansion to sustainable scale and deeper integration with the real economy.
  • It represents not merely scale, but structural transformation built on demographic advantage, digital public infrastructure, and a sustained reform agenda. 
  • As India advances towards a $7.3 trillion economy by 2030 and the broader vision of Viksit Bharat 2047, startups are poised to remain central to the country’s development trajectory.

Source: TH | IE

Startup India @10 FAQs

Q1: How has the Startup India scheme transformed India’s entrepreneurial ecosystem over the last decade?

Ans: A cultural and structural shift from job-seeking to job-creation, expanding startups and making India the world’s third-largest startup ecosystem.

Q2: Why is the government focusing on deep-tech startups under the Fund of Funds 2.0?

Ans: They require patient risk capital due to long gestation periods and are critical for India’s strategic autonomy in AI, defence.

Q3: What is the significance of indigenous AI development for India’s economic and strategic security?

Ans: Indigenous AI developed by Indian talent on Indian servers strengthens data sovereignty, reduces external dependence.

Q4: How has regulatory reform contributed to the success of India’s startup ecosystem?

Ans: Measures like the Jan Vishwas Act, self-certification, have lowered compliance burden and fostered trust-based innovation.

Q5: What is the role of inclusivity in strengthening India’s startup revolution?

Ans: Increased participation of women, rural youth, and tier-2/3 cities has broadened innovation, and ensured regional balance.

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