Beyond the Big Cities: How 1.95 Lakh Startups Are Turning India Into an Innovation Nation

For decades, India’s startup story was synonymous with its metros — Bengaluru’s tech corridors, Mumbai’s financial lanes, Delhi’s digital startups. But the narrative has shifted dramatically. The country’s entrepreneurial energy is no longer confined to a few postcodes or big-city co-working spaces. Today, India’s startup revolution has truly gone national.

According to the latest data from the Department for Promotion of Industry and Internal Trade (DPIIT), India is now home to over 1.95 lakh registered startups. What’s even more remarkable is how these ventures are spread across the country — from the bustling urban centres of Maharashtra and Karnataka to the rising innovation hubs in Uttar Pradesh, Gujarat, Kerala, and Rajasthan.

This isn’t just a startup boom. It’s a transformation — a shift towards a distributed, inclusive innovation economy that’s redefining where ideas are born and businesses are built.

Top Startup States in India

Maharashtra Leads the Charge

At the forefront of this movement is Maharashtra, the state that continues to anchor India’s startup ecosystem. With 28,511 registered startups, Maharashtra’s dominance is backed by a diverse innovation landscape — from Mumbai’s fintech and media-tech ventures to Pune’s deep-tech and mobility startups, and Nagpur’s growing agritech scene.

What makes Maharashtra stand out is its ability to blend its industrial legacy with digital dynamism. The state government’s startup-friendly policies and strong investor base have created a fertile ground for both high-growth ventures and early-stage innovators.

Karnataka: The Innovation Capital Still Going Strong

Not far behind is Karnataka, boasting 16,954 startups — a testament to Bengaluru’s unmatched ecosystem of talent, capital, and collaboration. But beyond Bengaluru, new cities like Mysuru, Mangaluru, and Hubballi are making their mark.

Through initiatives like Elevate 100, Karnataka has pushed innovation deeper into its tier-II cities, proving that entrepreneurial excellence can emerge anywhere. Whether it’s AI, SaaS, or clean-tech, the state continues to produce startups with global ambitions.

Delhi: Where Policy Meets Enterprise

The National Capital Territory of Delhi takes the third spot with 16,356 startups, thriving on a mix of digital-first ventures, D2C brands, and edtech innovations. Delhi’s ecosystem is fuelled by its proximity to policymakers, think tanks, and investors, making it a fertile ground for founders who operate at the intersection of policy and innovation.

The city has also become a hub for climate-tech and governance startups, leveraging its network of policy accelerators and government-linked incubators.

Uttar Pradesh: The Breakout Performer

If there’s one state redefining the startup map, it’s Uttar Pradesh. With 15,360 startups, it has emerged as one of India’s fastest-growing entrepreneurial destinations.

The state’s UP Startup Policy 2020, supportive incubator networks, and proactive initiatives like the Startup Nodal Agency have transformed cities such as Noida, Lucknow, and Kanpur into dynamic innovation zones. From agritech and healthtech to clean energy and edtech, UP is demonstrating that a strong policy push can ignite a new generation of entrepreneurs.

Gujarat: The Land of Enterprise Evolves

Entrepreneurship runs in Gujarat’s DNA — and it shows. With 13,400 startups, the state ranks fifth, leveraging its legacy of business innovation.

Ahmedabad and Vadodara are leading the state’s startup charge, particularly in manufacturing tech, renewable energy, logistics, and industrial automation. Gujarat’s ability to blend traditional commerce with new-age innovation makes it one of the most balanced startup ecosystems in India.

Tamil Nadu and Telangana: The Southern Powerhouses

Tamil Nadu and Telangana — ranked sixth and seventh respectively — are key pillars of India’s southern startup belt.
Tamil Nadu, with 10,814 startups, is becoming a hub for hardware, SaaS, and EV innovation, supported by strong academic institutions and manufacturing infrastructure.
Meanwhile, Telangana, with 8,437 startups, continues to flourish through T-Hub and WE Hub, enabling founders in AI, biotech, and deep-tech to scale globally.

Hyderabad’s success story is particularly inspiring — a shining example of how public–private collaboration can build a sustainable ecosystem.

Haryana, Kerala, and Rajasthan: The Emerging Forces

The final three states in the top ten — Haryana (8,400), Kerala (6,477), and Rajasthan (5,688) — underscore the diversity of India’s innovation map.

• Haryana’s proximity to Delhi NCR has made it a magnet for mobility and agritech startups, particularly in Gurgaon and Faridabad.

• Kerala, with its progressive Kerala Startup Mission (KSUM), has become a beacon for impact-driven and sustainability-focused ventures.

• Rajasthan is quietly building momentum in tourism-tech, edtech, and renewable energy, with incubation hubs in Jaipur, Udaipur, and Kota giving rise to fresh entrepreneurial energy.

A Nationwide Wave of Innovation

The numbers reveal something extraordinary: innovation in India is no longer a privilege of metros. From the deserts of Rajasthan to the coasts of Kerala, from the tech labs of Bengaluru to the startup streets of Lucknow — India’s entrepreneurial spirit is spreading with unprecedented momentum.

This decentralisation of innovation is also creating new jobs, regional growth, and problem-solving solutions at scale. Startups are no longer just building apps — they’re solving real, local problems in agriculture, logistics, healthcare, climate, and education.