Indian Startup Ecosystem Crosses 1.90 Lakh, Ranks 3rd Globally

In 2014, India had just about 350 recognized startups. Fast forward to 2025, and the number has crossed a staggering 1.90 lakh, cementing the country’s place as the world’s third-largest startup ecosystem. What was once seen as a risky leap of faith—leaving a secure job to “do a startup”—has now become a mainstream aspiration for young Indians across metros, small towns, and even villages.

The transformation hasn’t been overnight. It has been fueled by policy reforms, a digital-first push, and above all, the raw entrepreneurial hunger of India’s youth. Together, they’ve created a movement that isn’t just reshaping India’s economy but is steadily carving out the nation’s place as a global innovation leader.

From 350 to 1.90 Lakh: A Startup Every Hour

When the government launched Startup India in 2016, few could have predicted the scale it would unleash. According to the Startup India portal, India now officially hosts 1,90,007 DPIIT-recognized startups. That’s a new startup born every single hour for the last 11 years.

The ripple effects are everywhere. These ventures have already generated 17.6 lakh direct jobs, with multiplier effects across industries ranging from fintech and agritech to healthcare, deeptech, and mobility.

And unlike the early days when most startups were confined to Bengaluru, Delhi, or Mumbai, today’s map looks very different. 40% of these startups are based in Tier-2 and Tier-3 cities, proving that innovation in India is no longer metro-centric. Even more encouragingly, 48% of them are led by women entrepreneurs, pointing to a much more inclusive future for Indian entrepreneurship.

Policy Push: Startup-Friendly Reforms

This success story hasn’t been written by entrepreneurs alone. Policy nudges have played a decisive role. Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) have been able to access critical benefits that reduced red tape and nurtured early growth:

• Self-certification under six labour laws and three environmental laws, with a five-year inspection exemption.

• Tax holidays for three consecutive years under Section 80 IAC, plus relief from the controversial Angel Tax.

• Access to the Startup India Seed Fund Scheme (SISFS), with a ₹945 crore corpus disbursed through over 300 incubators to support proof-of-concept, product trials, and commercialization.

These policy enablers have removed some of the heaviest burdens entrepreneurs faced in the past, making it easier for them to focus on innovation rather than paperwork.

Digital Backbone: BHASKAR and Beyond

India’s startup momentum is also being powered by its deep digital infrastructure. The Bharat Startup Knowledge Access Registry (BHASKAR), hosted on the Startup India portal, has become a nerve center of collaboration. With over 6 lakh registered users, it offers startups unique digital IDs, personalized dashboards, visibility tools, and industry alliances—essentially creating a LinkedIn-meets-incubator ecosystem for entrepreneurs.

Startup India on the Global Stage

India’s entrepreneurial journey is not just about domestic growth—it has become a key part of global economic diplomacy.

Prime Minister Narendra Modi has consistently positioned startups as a central theme in India’s international outreach. At the SCO Summit in Tianjin, he emphasized that startups, youth empowerment, and digital inclusion would be pillars of regional cooperation. His proposal for a Civilizational Dialogue Forum within SCO aims to connect cultures through innovation.

In Japan earlier this year, Modi called India a “talent powerhouse” and Japan a “tech powerhouse”, pitching a deeper partnership in semiconductors, AI, biotech, and space technology. With Japanese investments of over $40 billion in India, including $13 billion in just the past two years, the message was clear: global players see India not just as a market, but as a co-creator of future technologies.

And at Semicon India 2025, the Prime Minister once again spotlighted startups and MSMEs as the engines of India’s semiconductor ambitions, an industry central to the next wave of global tech dominance.

The Investment Reality Check

Of course, the journey isn’t without its hurdles. Funding has slowed in 2025. Between January and September, Indian startups raised $11.1 billion across 1,240 equity rounds, a steep 30% drop compared to the $15.9 billion raised in 2024 during the same period.

Yet, despite the pullback, global investor interest hasn’t vanished. The European Union, BIRAC, LetsVenture, Kerala Startup Mission, and AngelList have emerged as active backers, showing that patient capital is still flowing into promising ventures. Meanwhile, consolidation is clearly underway, with 248 acquisitions and 152 IPOs recorded this year.

India today counts 91 unicorns and 22,117 women-founded startups, numbers that continue to grow despite temporary headwinds.

India’s startup story is far from reaching its climax. If the past decade was about laying the foundation, the next one will be about scaling innovation globally. With a thriving talent pool, robust digital infrastructure, and policy stability, the fundamentals remain rock solid.

The 1.90 lakh milestone is more than just a number—it’s a signal that India is no longer an “emerging” ecosystem. It’s here, it’s thriving, and it’s influencing the world.

As PM Modi often says, India is not just making for itself—it is ready to “Make in India, Make for the World.”

And with a startup born every hour, that vision might be closer than ever.