How India scaled its startup industry from 2016 to 2025
India's startup ecosystem has seen significant growth since 2015, driven by government initiatives and increased formal recognition by the DPIIT. The number of recognized startups has risen from 288 in 2016 to cover 77% of the sector by 2025.
Why it matters
The formalization of the startup sector is a key indicator of India's economic maturation and shift toward an innovation-led economy.
The Indian startup economy has truly come of age in the 10 years since Prime Minister Narendra Modi gave the clarion call during his Independence Day address on August 15, 2015, to make India the “Number 1” country in startups, and thereby sowed the seeds of significant directional change. The three traits that make startups different from conventional businesses are an emphasis on innovation, the use of technology, and market opportunity. To distinguish startups from other businesses, the Department for Promotion of Industry and Internal Trade (DPIIT) started recognising companies that aligned with government guidelines as startups. Despite DPIIT recognition not being mandatory for startups to operate, there has been a significant growth in startups applying for its recognition. From 288 in 2016, which was just 3% of the total startups functioning then, the DPIIT’s coverage has increased to 77% in 2025. The growing willingness to join the formal startup ecosystem has been an important measure of success for India’s startup story.
The article presents government data and industry trends objectively.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in