Startups to Remain Central to India's Growth Story Say Investors According to the Department for Promotion of Industry and Internal Trade, the country boasts 1.59 lakh startups and has firmly established itself as the third-largest ecosystem in the world.
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Startups will remain at the heart of India's economic growth, and with a conducive and progressive ecosystem, these companies can be the driving force of the nation's story going forward, said leading venture capital (VC) as India today celebrates nine years of 'Startup India,' designated as National Startup Day.
According to the Department for Promotion of Industry and Internal Trade, the country boasts 1.59 lakh startups and has firmly established itself as the third-largest ecosystem in the world.
Venture capital (VC) has played a pivotal part in backing ideas that have evolved into startups. According to GlobalData, startups in India secured a total of USD 9.2 billion in VC funding from 984 deals between January and October 2024, achieving a 44.4 per cent increase from 2023.
The ecosystem, thanks to various types of funding including VC, is now driven by over 100 unicorns and has transformed cities like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR into hubs of innovation, with the inner depths of the country also massively contributing to the entrepreneurial momentum.
Ankur Bansal, Managing Director, BlackSoil said that the country celebrates the resilience, innovation, and impact that startups bring to India's economy.
"As we witness a growing startup ecosystem in India, public and private sectors must collaborate and create an enabling environment through policy reforms, access to capital, and fostering innovation. We look forward to seeing more groundbreaking solutions emerge from the startup community, driving economic growth and job creation nationwide," said Bansal.
Over the past few years, the Startup India initiative has played a pivotal role in shaping the entrepreneurial ecosystem in the country. Since its inception, the number of DPIIT-recognised startups has grown from 500 in 2016 to 1,59,157 as of January 15, 2025. Over the last nine years, recognized startups have also been able to create over 16.6 lakh direct jobs, majorly contributing to employment generation
Archana Jahagirdar, Founder & Managing Partner, Rukam Capital added that, unlike traditional firms that primarily create replacement roles, startups pioneer entirely new business categories, redefining markets and fostering competition.
"This success is reflected in the rising number of IPOs and venture-backed companies that are redefining India's economic landscape. Furthermore, the pivotal role of venture capital is clear, with the top five U.S. companies being venture-backed, emphasizing its importance in this ecosystem. Beyond funding, venture capital provides strategic guidance that empowers entrepreneurs to succeed. With continued focus and support, startups will remain central to India's economic growth and global stature," said Jahagirdar.
Ankit Kedia, Founder and Lead Investor at Capital-A, said that the National Startup Day is a testament to the transformative journey of the country's entrepreneurs, who are reshaping industries with unprecedented boldness.
"Policies like the National Deep Tech Policy and PLI schemes have been pivotal, instilling confidence in startups to dream big and aim higher. What stands out most is the surge of entrepreneurial energy from Tier 2 and Tier 3 cities, reflecting a truly democratized spirit of innovation. National Startup Day is a call to action—a reminder to keep pushing boundaries and establish India as the global hub for innovation and excellence," said Kedia.
