India today is no longer seen as just an outsourcing hub or a back-office destination. Over the past decade, it has undergone a profound entrepreneurial transformation, positioning itself as the world’s third-largest startup ecosystem, behind only the United States and China.
At the heart of this transformation are Prime Minister Narendra Modi’s flagship initiatives, Startup India and Make in India, which have reshaped the country’s economic landscape and given young innovators the tools to compete on the global stage.
From fintech platforms powering digital payments to deep-tech firms innovating in artificial intelligence, Indian startups are now competing with global leaders. The spirit behind Startup India and Make in India goes beyond policy, it symbolizes a future where India’s youth can dream big, innovate fearlessly, and turn ideas into impact.
Startup India: Empowering risk-takers
Launched in January 2016, Startup India was designed to cut bureaucracy, simplify compliance, and introduce tax incentives to encourage entrepreneurship. The results have been remarkable.
- As of January 15, 2024, 1.59 lakh startups have been officially recognised by the Department for Promotion of Industry and Internal Trade (DPIIT).
- India now counts over 120 unicorns (startups valued at over $1 billion), contributing significantly to its $3.7 trillion economy.
- Between 2016 and October 2024, recognised startups created 16.6 lakh direct jobs, cementing their role as one of the largest sources of new employment in the country.
The programme has also strengthened the innovation pipeline by expanding incubation facilities, launching government-backed funds of funds, and introducing innovation challenges to encourage students and first-time entrepreneurs.
Prime Minister Modi has personally championed the cause, remarking, “We are actively promoting innovation and incubation centres so that our youngsters become risk-takers. I have personally been regularly interacting with upcoming startups.”
Make in India: Building strength at home
Running alongside Startup India, the Make in India campaign has focused on transforming the country into a global manufacturing hub. By targeting strategic sectors such as electronics, defence, automobiles, and textiles, the initiative has strengthened local supply chains, created jobs, and boosted exports.
The impact is visible:
- India recorded $71 billion in FDI inflows in FY 2023-24, one of the highest globally.
- The country’s manufacturing sector now contributes 17.5% to GDP, with a target to reach 25% in the coming decade.
- India has steadily climbed the World Bank’s Ease of Doing Business rankings, moving from 142nd in 2014 to 63rd in 2019, before the index was discontinued.
Global confidence in Indian innovation
The startup boom is not just about numbers, it’s about changing mindsets. From fintech platforms revolutionising digital payments to deep-tech firms advancing artificial intelligence and quantum computing, Indian startups are now attracting global investors and recognition. Venture capital inflows crossed $25 billion in 2022, even amidst a global funding slowdown.
The combined impact of Startup India and Make in India has been to mainstream entrepreneurship. What was once considered a risky career path has become aspirational. For India’s youth, these initiatives represent more than just policy frameworks, they are a promise of opportunity, a chance to innovate without barriers, and proof that India is no longer catching up but setting the pace globally.
Today, India’s entrepreneurial energy is palpable. Every day, three to four new startups are launched, many emerging from smaller towns and cities, expanding opportunities beyond traditional metros.
Speaking about the same, Muralidhar Somisetty, Founder & CEO, YogiFi, said, “Prime Minister Modi’s global advocacy for yoga created the inspiration, and his government’s startup-friendly policies laid strong foundation for entrepreneurs like me to dream big and take risks to position India as the world leader in health-tech innovation.”
Nilay Patel, founder of EasyPay said, “In the realm of lending, the government's push for Digital Lending and the creation of networks like the ONDC – financial services have been equally impactful.”
