Inside Viksit Bharat@2047: Why Startups Are Central to India’s Future Economy

In Bengaluru on August 2, 2025, India’s innovation ambitions took center stage at the Viksit Bharat@2047 Investor Roundtable Conference—a strategic gathering of policymakers, investors, and industry leaders dedicated to transforming India into a developed nation by 2047.

At the event, Sumeet Jarangal, Director at DPIIT, reaffirmed the government’s conviction that startups are not just economic actors—but key drivers of India’s growth trajectory. His message was unequivocal: entrepreneurship is core to India’s Viksit Bharat vision, and public policy is now firmly aligned to support, scale, and de-risk it.

From Policy to Platform: Startup India at the Forefront

The roundtable emphasized how Startup India, launched in 2016, has matured into a national innovation platform—bridging gaps in capital, credit, and compliance. Shri Jarangal outlined four flagship schemes that have become pillars of India’s startup economy:

• Fund of Funds for Startups (FoF)
• Startup India Seed Fund Scheme (SISFS)
• Credit Guarantee Scheme for Startups (CGSS)
• Section 80-IAC income tax exemption

He also invited state governments and stakeholders to provide feedback on evolving policy needs, including the proposed update to the startup definition—a move signaling the government’s intent to future-proof startup governance.

Startups and incubators were urged to proactively engage with these schemes, and to contribute to India’s technological and industrial leap forward as part of the Viksit Bharat@2047 roadmap.

The Bigger Picture: What Viksit Bharat@2047 Means for Startups

The Viksit Bharat@2047 initiative aims to make India a US$ 30 trillion economy by 2047, built on the pillars of Youth (Yuva), Poor (Gareeb), Women (Mahilayen), and Farmers (Annadata). Startups—particularly those solving for scale, sustainability, and inclusion—are now seen as key enablers across all four pillars.

Today’s conference is part of a broader series of roundtables, youth dialogues, and policy summits, which focus on themes like:

• Tech for Viksit Bharat
• Empowering Youth through Innovation
• Making India the Startup Capital of the World
• Steering India Towards a Sustainable Future

In Bengaluru, the narrative was clear: startups are no longer niche—they are national assets.

Policy in Action: The Schemes Powering India’s Startup Momentum

India’s startup support ecosystem is not just enabling innovation—it’s institutionalizing it. Each scheme presented at the roundtable addresses a specific barrier, ensuring founders can build with confidence.

Fund of Funds for Startups (FoF)

• ₹20,000 crore corpus managed by SIDBI
• ₹91,000 crore catalyzed through 140+ SEBI-registered AIFs
• 25% earmarked for women-led startups, 25% for climate-focused ventures
• Impact: 22 unicorns supported, 2 lakh+ jobs created, capital extended beyond metros

Startup India Seed Fund Scheme (SISFS)

• ₹945 crore disbursed to 219 incubators
• 1,740 early-stage startups funded in agritech, healthtech, clean energy
• Focus: Decentralizing innovation, building regional startup pipelines

Credit Guarantee Scheme for Startups (CGSS)

• Collateral-free guarantees up to ₹20 crore
• ₹667.85 crore in loans guaranteed across 289 startups
• Coverage includes 27 Champion Sectors—from aerospace to fintech
• Impact: Unlocking venture debt and working capital, creating 20,000+ jobs

Section 80-IAC Income Tax Exemption

• 100% tax exemption for any 3 years within first 10 years
• Extended eligibility till March 31, 2030
• 3,700+ startups approved to date; 187 in FY 2024–25
• Policy intent: Support scaling, not just survival

From Startup Nation to Innovation Powerhouse

India’s startup governance model is evolving—from a support system to a strategic national capability. With a DeepTech Fund of Funds under consideration, and policy frameworks being fine-tuned in response to ecosystem feedback, the government is signaling long-term commitment to innovation-led growth.

What we are witnessing is not policy in isolation, but policy in motion—designed to empower the risk-taker, de-risk innovation, and democratize opportunity.

Startups as Builders of Viksit Bharat 2047

The message from Bengaluru is unmistakable: Startups are central to India's 2047 vision. As India moves toward developed nation status, founders, investors, and policymakers must collaborate to ensure that innovation is inclusive, impactful, and sustainable.

With strong policy backing, expanding funding access, and a growing global footprint, India is not just fostering more startups—it is building the foundation for Viksit Bharat.