How Indian Startup Revolution is Shaped Under Modi Government?

As the Modi-led NDA government nears the culmination of its second term, a retrospective glance reveals a remarkable phenomenon: the meteoric rise of the Indian Startup Ecosystem. Indeed, within these two terms, this sector has not just grown; it has been conceived and carefully nurtured. The Indian Startup movement was started back in 2016 with the launch of Startup India program.

Throughout this period, the nation has borne witness to the emergence of a staggering 1,17,000 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). Yet, the narrative extends beyond mere numbers. 

1,17,000 DPIIT Registered Startups & Beyond

The numbers speak volumes about the growth trajectory of Indian startups. With over 1,17,000 startups registered, the entrepreneurial spirit has permeated every corner of the nation. What's even more striking is the geographical spread, with startups sprouting in 670+ districts, indicating a decentralized wave of innovation. Notably, more than 50% of these startups hail from Tier II and Tier III cities, debunking the myth that innovation is confined to metropolitan hubs.

Unicorns in India

India's unicorn club has been expanding at an unprecedented pace, with 112+ startups achieving the coveted billion-dollar valuation mark. These unicorns represent a diverse array of sectors, including e-commerce, fintech, healthtech, and edtech, showcasing the breadth of opportunities in the Indian market. This surge in unicorn creation not only attracts global attention but also infuses confidence in the startup ecosystem, attracting substantial investments and talent.

Jobs Created by Startups in India

The startup boom has been a significant contributor to job creation, with over 1 million jobs generated across various sectors. This employment surge not only addresses the pressing issue of unemployment but also underscores the role of startups as engines of economic growth and social mobility. Moreover, with 31 states implementing dedicated startup policies, there is a concerted effort to create an enabling environment for entrepreneurial ventures, fostering innovation-led development.

Government Initiatives for Startups

India has been actively promoting entrepreneurship and Startups through various initiatives. Each Ministry and Department has had a significant role to play in promoting Startups in their respective sectors. Some of the Central Government initiatives undertaken toward strengthening the Startup ecosystem include:

Innovations for Defence Excellence (iDEX)

IDEX is a scheme by the Department of Defence Production, Ministry of Defence which aims to give impetus to innovation, design and development, and support Startups and innovators for successful prototype development. The Scheme facilitates financial support to nearly 300 Startups, MSMEs, individual innovators, and around 20 partner incubators.

Innovation and Agri-Entrepreneurship Development Program

This program supported by the Ministry of Agriculture and Farmers Welfare aims to promote innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem in the country. The scheme aims to boost agri-Startups in the country by 20% from 1176 Startups in July 2023.

Atal Innovation Mission (AIM)

AIM has established 10,000+ Atal Tinkering Labs, which engage more than 75 L students across 34 states and UTs. AIM has supported more than 2900+ Startups and created 6100+ strong mentor network across the nation. Bridging the gap between inclusion, innovation, and sectoral penetration.

Promoting Innovations in Individuals, Start-ups and MSMEs (PRISM)

This scheme aims to support individual innovators to achieve the agenda of inclusive development. The Department of Science and Institutional Research sanctioned 132 proposals for establishing Startups.

Role of Private Ecosystem

The synergy between the public and private sectors has been a defining feature of India's startup journey. Private stakeholders have played a pivotal role in providing funding, mentorship, and networking opportunities to startups, amplifying their growth trajectory. The collaboration with over 250 corporate partners has not only facilitated access to resources but also catalyzed innovation through corporate challenges and partnerships. Additionally, the surge in venture capital funding, with investments reaching $38.5 billion in 2021, underscores the confidence of investors in the Indian startup ecosystem.

India Startup Ecosystem: Looking Ahead at Sustaining Momentum

As India's startup ecosystem continues to scale new heights, the focus shifts towards sustaining this momentum and addressing emerging challenges. Ensuring equitable access to resources, fostering a culture of innovation in traditional sectors, and enhancing ease of doing business will be paramount. Moreover, fostering deeper collaboration between academia, industry, and government can unlock new avenues for research, development, and commercialization.

India's startup story is not just a narrative of growth but a testament to the nation's entrepreneurial spirit, resilience, and aspiration. As the ecosystem matures, it holds the promise of driving inclusive growth, technological innovation, and global competitiveness, positioning India as a powerhouse of innovation on the world stage.