In response to a legislative question, Som Parkash, Minister of State in the Ministry of Trade and Industry, stated that startups and the broader innovation ecosystem are the main drivers of growth for any nation.
Realising this, the government announced the Startup India programme on January 16, 2016, with the goal of strengthening the ecosystem for nurturing India’s startup culture, which will help to further our nation’s economic growth, encourage entrepreneurship, and provide numerous job possibilities.
Overall, the Indian startup ecosystem is expanding quickly and is expected to keep playing a significant role in the global startup landscape. The future seems promising for entrepreneurs in India because of a sizable pool of gifted engineers and experts, a ready market for technology-based goods and services, and a supportive government.
In what ways does the Indian government support the startup ecosystem?
Consistent government efforts in this area have resulted in an increase in the number of recognised startups from 442 in 2016 to 92,683 in 2023. (as on 28th February 2023).
Start-up India Seed Fund Scheme (SISFS): This programme offers funding support to new businesses so they may prove their ideas, create prototypes, test goods, and go to market.
Awards for National Startups: This initiative honours and rewards exceptional startups and ecosystem builders who support economic dynamism by fostering competition and innovation.
SCO Start-up Forum: The Shanghai Cooperation Organization (SCO) Startup Forum was created in October 2020 as a way to improve the start-up ecosystems in SCO member states.
Developing and Harnessing Innovations National Initiative (NIDHI): An all-encompassing plan has been developed for startups to treble the number of incubators and start-ups over the next five years.
What are the Growth Drivers of Indian Startups?
Huge Domestic Market: India has a vast domestic market for technology-based products and services, making it an ideal place for startups to sell their wares.
Support from the government: The Indian government has been aggressively promoting entrepreneurship through programmes like “Atma Nirbhar Bharat” and “Digital India,” supporting start-up businesses.
Increase of Sharks (Private Investment): There has been an increase in private investment in startups in India, with many venture capital firms and angel investors actively promoting and funding early-stage businesses.
Access to Technology: Internet use and technological advancements have made it possible for startups to grow swiftly, which has resulted in the emergence of multiple unicorns in the ecosystem.
E-commerce boom: The Indian e-commerce business has experienced rapid expansion in recent years, offering a ready market for new e-commerce startups.
Start-up Hubs: Bengaluru, Mumbai, and Delhi-NCR are the three largest startup hubs in India and offer an atmosphere that is favourable for startups to develop and flourish.
In particular, Bengaluru has earned the moniker “Silicon Valley of India” due to the abundance of tech firms based there.
| Sector wise number of recognized Startups as on 28th February 2023 | ||
| S. No. | Industries | No. of Recognised startups |
| 1 | Advertising | 673 |
| 2 | Aeronautics Aerospace & Defence | 910 |
| 3 | Agriculture | 4653 |
| 4 | AI | 1580 |
| 5 | Airport Operations | 10 |
| 6 | Analytics | 640 |
| 7 | Animation | 93 |
| 8 | AR VR (Augmented + Virtual Reality) | 485 |
| 9 | Architecture Interior Design | 517 |
| 10 | Art & Photography | 321 |
| 11 | Automotive | 1950 |
| 12 | Biotechnology | 260 |
| 13 | Chemicals | 813 |
| 14 | Computer Vision | 223 |
| 15 | Construction | 3873 |
| 16 | Dating Matrimonial | 81 |
| 17 | Design | 629 |
| 18 | Education | 5962 |
| 19 | Enterprise Software | 1696 |
| 20 | Events | 365 |
| 21 | Fashion | 1279 |
| 22 | Finance Technology | 2930 |
| 23 | Food & Beverages | 4523 |
| 24 | Green Technology | 2046 |
| 25 | Healthcare & Lifesciences | 8691 |
| 26 | House-Hold Services | 633 |
| 27 | Human Resources | 1979 |
| 28 | Indic Language Startups | 269 |
| 29 | Internet of Things | 1428 |
| 30 | IT Services | 11099 |
| 31 | Logistics | 412 |
| 32 | Marketing | 1837 |
| 33 | Media & Entertainment | 1426 |
| 34 | Nanotechnology | 145 |
| 35 | Non- Renewable Energy | 1639 |
| 36 | Other Specialty Retailers | 623 |
| 37 | Passenger Experience | 11 |
| 38 | Pets & Animals | 244 |
| 39 | Professional & Commercial Services | 4506 |
| 40 | Real Estate | 810 |
| 41 | Renewable Energy | 2429 |
| 42 | Retail | 2160 |
| 43 | Robotics | 491 |
| 44 | Safety | 292 |
| 45 | Security Solutions | 972 |
| 46 | Social Impact | 576 |
| 47 | Social Network | 659 |
| 48 | Sports | 453 |
| 49 | Technology Hardware | 2934 |
| 50 | Telecommunication & Networking | 880 |
| 51 | Textiles & Apparel | 1362 |
| 52 | Toys and Games | 215 |
| 53 | Transportation & Storage | 1456 |
| 54 | Travel & Tourism | 1436 |
| 55 | Waste Management | 593 |
| 56 | Not Specified | 3511 |
| Grand Total | 92,683 |