The Startup India Mission has played a pivotal role in driving India’s economic growth over the past nine years. Union Minister for Commerce and Industry, Piyush Goyal, attributed much of the mission’s success to key funding mechanisms like the Fund of Funds for Startups (FFS). Administered by the Small Industries Development Bank of India (SIDBI) and financed by the Government of India, the FFS has mobilized private capital, especially for startups in Tier II and Tier III cities.
The Startup movement will gain momentum with more private funding in the days to come,” Goyal said. He emphasized the importance of private equity (PE) and venture capital (VC) in driving innovation and accelerating the growth of Indian startups. Our collaboration with PE and VC firms has been instrumental in supporting innovation and accelerating the journey of startups from ideation to execution,” Goyal stated.
This partnership provides funding and introduces global expertise and networks that help Indian startups compete internationally. The government is connecting startups with mentorship, financial instruments, and opportunities for collaboration through initiatives like the BHASKAR platform. Startups have emerged as agents of change, addressing pressing challenges like sustainability, renewable energy, healthcare, and digital transformation.
India’s startup ecosystem has experienced remarkable growth, with 76 Initial Public Offerings (IPOs) in 2024 alone. The country now ranks as the third-largest startup ecosystem globally, with 1,59,157 startups as of January 15, 2025, up from around 500 in 2016. These startups have generated 17.2 lakh direct jobs and received total funding of Rs 13 trillion from the government.
India’s thriving startup ecosystem
Goyal reaffirmed the government’s commitment to supporting the startup ecosystem and providing support to the entrepreneurial spirit of India. He credited policy-driven initiatives for positioning India as a global leader in innovation and technology-driven growth.
Looking ahead, Goyal said that India is entering a crucial phase in its development, with strong macroeconomic fundamentals setting the stage for the next 25 years. “Our startups will play a crucial role in realizing the vision of a self-reliant, inclusive, and globally competitive India,” he added. The commerce minister also noted India’s leadership in producing STEM graduates, with women constituting 43% of graduates.
Targeted initiatives like the Women Entrepreneurship Platform empower women-led startups. The event served as the curtain-raiser for the second edition of the Startup Mahakumbh, set to begin in April. Goyal announced that 2,500 startups would participate in this event, highlighting India’s growing role as a global hub for innovation and entrepreneurship.
The Department for Promotion of Industry and Internal Trade (DPIIT) launched the PRABHAAV Factbook, a comprehensive guide to India’s startup ecosystem and its growth from 2016 to 2024. The Factbook captures the achievements of every region in India, showcasing the dynamic growth story of the country’s startup sector. The Bharat Startup Grand Challenge was also unveiled, aiming to unleash 75 challenges across various sectors.
Industry leaders and innovators will invite thinkers to solve business challenges in areas such as renewable energy, blockchain, agritech, and smart manufacturing. The challenge will provide startups with procurement opportunities, cash prizes, funding, mentorship, and networking opportunities.
