Part 1: The Rise and Impact of India’s Startup Ecosystem
India, with 1,72,745 startups and 119 unicorns is the 3rd largest startup ecosystem globally following the United States and China. The sustained growth is attributed to various government initiatives, funding opportunities, and a conducive environment for innovation and entrepreneurship.
Number of startups increased during 2024 from 1,20,000 to 1,57,000 i.e. more than 100 startups are adding each passing day. During April 2025, more than 3500 startups got recognized on the Startup India portal of The Department for Promotion of Industry and Internal Trade, DPIIT, Government of India. The continual surge in startups indicates increasing interest among budding professionals to become an entrepreneur generating and offering employment opportunities to others instead of seeking employment.
India's startup ecosystem has expanded rapidly, with over 1.72 lakh DPIIT-recognized startups as of May 2025. These startups are spread across sectors like IT services, healthcare, education, agriculture, manufacturing etc.
The Government of India, along with various states and union territories governments, is actively fostering a robust startup ecosystem through a combination of policy initiatives, funding support, infrastructure, and ecosystem development. India is the only country wherein startups are enrolled under the most diverse sectors exceeding 55 sectors, the maximum globally.
India's startup ecosystem has expanded significantly, with several states emerging as leaders in fostering innovation and entrepreneurship. DPIIT conducts the States' Startup Ranking to evaluate and encourage states' efforts in building robust startup environments. Also, startups spread is quite diverse as the startups are enrolled from 800 districts out of 802 from 28 states and 8 union territories. As per the latest available ranking the leading states are Gujarat, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, Punjab, Rajasthan, Telangana, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Assam and Uttarakhand.
The surge in job creation is notable exceeding 18 lakhs, with over 14.11 lakh of these jobs generated between 2020 and 2024, highlighting the resilience and dynamism of India's startup ecosystem even amidst global economic challenges. These figures underscore the significant impact of startups in driving employment across both traditional and emerging sectors. Notably, industries like Renewable Energy, Green Technology, Artificial Intelligence, and Robotics reflect the evolving focus towards sustainable and technology-driven solutions.
Prominent startup sectors are IT services, Healthcare and Lifesciences, Professional and Commercial Services, Education, Construction, Food and Beverages, Agriculture, Fintech, Renewable Energy, Green Technology, Artificial Intelligence, Space, Data Science, Robotics etc.
Successful Indian entrepreneurs like Mukesh Ambani and Ratan Tata have led massive conglomerates, while others like Vijay Shekhar Sharma and Kiran Mazumdar-Shaw have transformed industries. N. R. Narayana Murthy, Dilip Sanghavi, Bhavish Agrawal, Sachin Bansal and Binny Bansal, Falguni Nayar, Ritesh Agrawal are among the top entrepreneurs of all times. Their journeys reflect both triumphs and challenges, inspiring future generations to pursue entrepreneurship.
The Indian startup environment has emerged as a significant development engine for India in recent years and aims to become a global technology superpower. The goal of Best Startups in India, which the Indian government runs, is to foster a culture of entrepreneurship and innovation. Many Indian firms are flourishing, with younger people being encouraged to work and develop expertise in their fields of interest. Flipkart, Ola, Zomato, Paytm, CRED, Skit.ai, Digital Insurance, PharmEasy, Meesho, Swiggy, Groww, Nykaa, udaan.com, Dream11, Instamojo, Postman, Razorpay, Delhivery, slice, InMobi, Practo, boAt Lifestyle, DriveU, Skyroot Aerospace, Livspace, Ather Energy, UrbanCompanyetc are among the most successful startups in India.
During 2024, select of the youngest self-made entrepreneurs are Kaivalya V., who co-founded Zepto at age 21, Aadit Palicha, also co-founder of Zepto, at 22 years. Shashvat Nakrani, the founder of BharatPe, another young entrepreneur, at 26, Dilsher Malhi Founder of Zupee, at 28 and Karan Mehta Co-founder of Kissht also at 28.
Startups provide a great chance to improve one’s abilities and advance in one’s field. Although beginning-level training courses might assist you, advanced classes like data science schools or cloud computing programs may help expand job prospects because professional-level expertise is essential in all industries.
The Road Ahead
India’s startup ecosystem is set for even greater acceleration in 2025, driven by a young, tech-savvy population, widespread internet penetration, and a supportive policy framework. The ecosystem’s evolution from “me-too” business models to original, IP-based innovations is fostering a new generation of entrepreneurs focused on global competitiveness and sustainable growth.
Prominent entrepreneurs-ranging from conglomerate leaders like Mukesh Ambani and Ratan Tata to new-age founders like Vijay Shekhar Sharma, Falguni Nayar, and Bhavish Aggarwal-continue to inspire, reflecting both the triumphs and challenges of entrepreneurship in India.
As India aims to become a global technology superpower, its startup ecosystem stands as a testament to the country’s innovation, resilience, and capacity to drive inclusive economic growth.
We appreciate you all taking out the time to read Part 1 of comprehensive research and analysis of "Entrepreneurship an Era of Startups." In the coming part - II , we will explore inspiring motivational success stories, focusing upon the contributions of successful entrepreneurs, and glance through the emerging trends in entrepreneurship and startups which are influencing India's booming startup ecosystem deeply.
For the upcoming part - II, stay tuned and follow Mr. Sushil Kumar Sharma, Founder CEO, Sustaineco, NTPC Ltd🏆 and CXO India. Keep an eye out! CXO India is the best destination for actionable insights, thought leadership, and exclusive events. Discover more insightful content tailored for Indian CXOs. Reach out to us at info@cxo-india.com
