India’s Startup Engine Crosses 1.85 Lakh – What’s Driving the Boom?

India has achieved a significant milestone by reaching 185 lakh DPIIT-recognized startups, positioning itself as the world's third-largest startup ecosystem, only behind the US and China.

The startup boom is not confined to major cities; over 40% of startups hail from Tier-2 and Tier-3 cities, and nearly half are led by women, reflecting a shift towards a more inclusive and decentralized innovation landscape

Since 2014, India has seen a surge in startup activity, creating over 176 lakh jobs. The government actively supports this growth through initiatives like Khelo Bharat Niti 2025, fostering innovation across diverse sectors.

Despite a global funding slowdown, Indian startups have attracted significant investments, with $885 billion raised in 2025 so far, showcasing resilience and continued investor interest.

India is home to 118 unicorns, with Bengaluru leading the way The country has also witnessed 228 acquisitions and 119 IPOs in 2025, indicating strong investor confidence and viable exit opportunities.

Policy reforms since 2016, such as self-certification under labor laws and tax holidays, have been crucial in supporting startups, reducing bureaucratic hurdles, and facilitating business growth

Government funding schemes like the Startup India Seed Fund Scheme and Fund of Funds for Startups have provided substantial financial backing, further enabling startup success

Corporate leaders recognize the importance of regional brands and agile startups, which contribute to consumer variety and drive faster innovation

Internationally, India ranks third in unicorn creation, with projections suggesting it could house over 150 fintech unicorns valued at $500 billion by 2030

The startup movement is part of a broader vision of nation-building, empowering small-town entrepreneurs, creating jobs, supporting women-led businesses, and driving mission-driven innovation, positioning India as a future global innovation leader