SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
DPIIT | Ministry of Commerce and Industry
National Startup Day on 16 January 2026 marks a decade of the Startup India Initiative, which has transformed the country into one of the world’s largest startup ecosystems with over 2 lakh DPIIT-recognised startups as of December 2025. The movement has significantly democratized entrepreneurship, with 50% of startups now emerging from Tier-II and Tier-III cities and more than 45% having at least one woman Director or Partner. This decade-long evolution has shifted from a policy push to a comprehensive life-cycle support system spanning ideation, funding, and mentorship.
Flagship Schemes and Digital Platforms
Fund of Funds for Startups (FFS): Managed by SIDBI with a ₹10,000 crore corpus, it has committed capital to 140+ Alternative Investment Funds (AIFs), which have collectively invested ₹25,500+ crore in over 1,370 startups.
Startup India Seed Fund Scheme (SISFS): Provides financial assistance for prototyping and market entry; ₹945 crore has been approved to 215+ incubators to support early-stage ventures.
Credit Guarantee Scheme for Startups (CGSS): Enables collateral-free loans, with over 330 loans worth ₹800 crore guaranteed to date.
States’ Startup Ranking Framework (SRF): Fosters competitive federalism by assessing states and UTs on their startup-friendly governance and implementation.
Innovation and Ecosystem Expansion
Atal Innovation Mission (AIM) 2.0: Shifting from infrastructure building to piloting new models, AIM 2.0 includes programs like the Language Inclusive Program of Innovation (LIPI) to establish 30 Vernacular Innovation Centres.
Deeptech and Sectoral Focus: Initiatives like the Deeptech Reactor sandbox and Atal Sectoral Innovation Launchpads (ASIL) aim to commercialize innovations in key industrial sectors.
Educational Impact: Over 10,000 Atal Tinkering Labs across 733 districts have engaged 1.1 crore students in 21st-century skills like AI and robotics.
What is ‘Competitive Federalism’ in the context of the Startup India ecosystem? It refers to a policy strategy where the central government encourages States and Union Territories to compete with one another to improve their business and regulatory environments. In this context, it is operationalized through the States’ Startup Ranking Framework (SRF), which ranks states into categories like “Best Performers” or “Leaders” based on their specific support policies and implementation efficacy. This competition incentivizes states to adopt best practices, simplify local regulations, and provide better infrastructure, ultimately strengthening the national entrepreneurial ecosystem from the bottom up.
Policy Relevance
The Startup India movement is a vital pillar of the Viksit Bharat 2047 vision, driving economic modernization while ensuring regionally balanced and inclusive growth.
Strategic Impact for India:
Democratizing Innovation: The 50% share of startups from smaller cities reduces regional disparities and brings high-value jobs to Tier-II and Tier-III India.
Leveraging the Demographic Dividend: Startups create direct and indirect employment across technology, services, and manufacturing for India’s young workforce.
Enhancing Global Competitiveness: The growth of unicorns from 4 in 2014 to over 120 today, with a combined valuation of $350 billion, establishes India as a global innovation powerhouse.
Social Equity through Entrepreneurship: With 45% of startups being women-led, the initiative serves as a powerful driver for gender-inclusive economic participation.
Relevant Question for Policy Stakeholders: How can the government further incentivize private ‘Alternative Investment Funds’ (AIFs) to increase their risk-capital exposure toward deep-tech startups that have longer gestation periods but higher strategic value?
Follow the full news here: A Decade of Startup India