The number of startups in India is expected to surge nearly tenfold over the next decade, reaching 1 million, driven by extensive government support, Commerce and Industry Minister Piyush Goyal stated on Tuesday.
Speaking at the India-Israel Business Forum, Goyal highlighted India’s rapid rise as a startup powerhouse. “We are now the third-largest startup ecosystem in the world, growing from 450 registered startups in 2014 to 157,000 today. In the next 10 years, we hope to take it up to a million,” he said.
Expanding Startup Footprint
The geographical spread of startups has also witnessed a dramatic expansion. While in 2016, startups were limited to 120 districts, today they are present across 750+ districts, and the government aims to have startups in every district by the end of 2025.
According to Minister of State Jitin Prasada, startups recognized by the government have created over 1.7 million direct jobs as of December 2024 across more than 55 industries. However, out of the total 157,000 startups, approximately 5,063 have ceased operations or been struck off the registry.
Government Support Through Startup India
To facilitate this growth, the government launched the Startup India initiative in 2016, offering capital support, tax incentives, and incubation centers. The initiative provides funding through three key schemes:
- Fund of Funds for Startups (FFS)
- Startup India Seed Fund Scheme
- Credit Guarantee Scheme for Startups
The Union Budget 2025 has further boosted support with an additional Rs 10,000 crore under FFS and a dedicated fund for deeptech startups.
Also read: Union Budget 2025-26: Fueling India’s Startup, Tech, and Green Innovations
Massive Investments in Startups
Since the launch of the first Fund of Funds for Startups (FFS) in 2016, investments exceeding Rs 21,700 crore have been catalyzed by Alternative Investment Funds (AIFs) in more than 1,180 startups.
These AIFs are mobilizing a total corpus of Rs 91,000 crore by attracting external investments. Under the FFS structure, AIFs receiving support must invest at least twice the amount committed by the government.
As India continues to scale its startup ecosystem, deeptech, AI, and innovation-led entrepreneurship are expected to play a crucial role in shaping the next phase of economic and technological growth.
