January 11, 2025: India’s Startup Revolution: From 120 to 750+ Districts Supporting Entrepreneurs in Just 9 Years. Further, from a modest 400 startups in 2016, the number surged to a staggering 157,000 by the end of 2024. The funding landscape for new ventures has grown from a modest USD 8 billion in 2016 to an eye-watering USD 115 billion in 2024, demonstrating investor confidence in India’s entrepreneurial potential.
India’s startup ecosystem has experienced remarkable growth in the past nine years, thanks to the government’s Startup India initiative launched on January 16, 2016. The initiative, which aimed to foster innovation and entrepreneurship across the country, has triggered a massive expansion. As of 2024, over 750 districts in India now actively nurture and mentor startups, a significant leap from just 120 districts back in the day.
This growth is mirrored in the number of startups that have been registered across India. This dramatic increase highlights the positive impact of the government’s pro-entrepreneurial policies and schemes.
A Robust Ecosystem for Startups: Key Schemes Fueling Growth
The government has introduced several initiatives to create a thriving startup ecosystem. Among the most notable are the Startup India Seed Fund Scheme, Fund of Funds for Startups, and the Credit Guarantee Scheme for Startups. These schemes have provided crucial financial support to budding entrepreneurs, reducing barriers to entry.
Additional incentives like Income Tax Exemption for 3 years, faster Exit for Startups, and Support for Intellectual Property Protection have made the landscape even more favorable for startups, encouraging innovation and risk-taking.
State and UT Policies: A Growing Network of Startup -Friendly States
When the Startup India initiative was launched, only four states and union territories (UTs) had dedicated startup policies. Fast forward to 2024, and the number has grown to an impressive 31 states and UTs, all offering tailor-made policies to nurture and scale startups.
Massive Job Creation and Unicorn Growth: India’s Startup Success Story
According to the Department for Promotion of Industry and Internal Trade (DPIIT), new ventures in India have contributed significantly to job creation. Over 1.7 million jobs have been generated, providing opportunities in diverse sectors from technology to healthcare.
New ventures in India success story is also reflected in the rise of unicorns — startups valued at over USD 1 billion. The number of unicorns has grown exponentially from 8 in 2016 to 118 in 2024, signaling the maturity of India’s startup ecosystem and its global competitiveness.
Income Tax Benefits and Fast-Tracking for Startups
As part of its ongoing efforts to support entrepreneurs, the government has made significant tax provisions for new ventures in India. Companies incorporated after April 1, 2016, can now apply for income tax exemption for three consecutive years within a ten-year period. Moreover, new ventures that obtain an Inter-Ministerial Board Certificate are granted a 3-year tax break, making it easier for them to reinvest profits into their growth.
Additionally, the government has streamlined the exit process for new ventures in India, enabling them to wind up operations within just 90 days, compared to the 180-day process for other businesses.
DPIIT’s National Startup Day: Celebrating Nine Years of Growth
As India prepares to celebrate National Startup Day on January 16, DPIIT has released its figures showcasing the impressive progress made since the launch of the Startup India initiative. This data underlines India’s position as a global startup hub and highlights the government’s commitment to supporting innovation and entrepreneurship.
India’s startup ecosystem is poised for even greater growth in the coming years, with more districts, states, and investors contributing to its success.
