Abstract
India’s vision of becoming a developed nation by the centenary of its independence—Viksit Bharat 2047 is dependent largely on transition into an innovative and growth-focused economy. The "Viksit Bharat 2047" vision mandates a structural transformation of the Indian economy. Central to this objective is the Start-up India mission, designed to position entrepreneurship as the primary engine for sustainable economic development, job creation, and technological self-reliance. Central to this goal is the catalytic role played by the Start-up India initiative, combined with Digital Public Infrastructure (DPI) and an unprecedented surge in domestic innovation. This research examines the structural transformation of India's startup ecosystem and its strategic role in achieving economic self-reliance, high-value job creation, and global competitiveness. Using an analytical framework grounded in policy evaluation and economic indicators, this paper assesses the core drivers of India's entrepreneurial expansion—including incubator networks, regulatory easing, deep-tech research, and venture capital integration. Simultaneously, it highlights persistent structural challenges, such as the gap between laboratory research and commercialization (the "valley of death"), regional funding disparities, regulatory friction, and digital talent shortages. Adopting an analytical and conceptual framework based on secondary data, economic reports, policy documents, and empirical studies, the paper analyses key indicators across ecosystem growth, policy interventions, access to capital, and technological adoption across Tier-1, Tier-2, and Tier-3 cities. Using an analytical framework grounded in policy evaluation and economic indicators, this paper assesses the core drivers of India's entrepreneurial expansion—including incubator networks, regulatory easing, deep-tech research, and venture capital integration. The findings reveal that flagship initiatives like Start-up India, Digital India, and grassroots incubation infrastructure (e.g., Atal Innovation Mission) have fundamentally shifted India’s identity from a tech-adaptor to a designer of frontier solutions. However, sustaining this momentum toward 2047 requires addressing key challenges, such as funding constraints beyond seed stages, regulatory frictions, R&D commercialization gaps ("the valley of death"), and skill misalignments. The study concludes with actionable recommendations for policymakers, academic institutions, and industry stakeholders to strengthen public-private partnerships, accelerate R&D commercialization, and build a resilient entrepreneurial landscape capable of anchoring Viksit Bharat 2047.
Start-up India
References
1. Department for Promotion of Industry and Internal Trade (DPIIT). Startup India Portal. Government of India. https://www.startupindia.gov.in/ 2. Startup India. Startup India Scheme and DPIIT Recognition Framework. Government of India. https://www.startupindia.gov.in/content/sih/en/startup-scheme.html 3. Press Information Bureau, Ministry of Commerce & Industry. (2026, April 17). Government recognizes more than 55,200 startups during FY 2025–26; total recognized startups cross 2.23 lakh with over 23.36 lakh jobs created. 4. Government of India. Economic Survey 2025–26. Ministry of Finance, Department of Economic Affairs. https://www.indiabudget.gov.in/economicsurvey/ 5. NITI Aayog. Reports and publications on innovation, entrepreneurship and development. Government of India. https://www.niti.gov.in/ 6. NASSCOM. Indian Tech Startup Ecosystem and related annual ecosystem reports. 7. Kankariya, S., Jain, R., & Jagwani, P. (2022). Studies on India's emergence as a major global startup ecosystem. 8. Nair, S., & Aggarwal, R. (2017). Studies on policy bottlenecks, regulatory friction and the Indian startup environment. 9. Jayanthi, R. (2019). Studies on state-level financial incentives and entrepreneurship. 10. Kumar, R., & Gupta, S. (2021). Studies on employment elasticity and direct and indirect employment generated by startups. 11. Chaudhary, S. (2024). Studies on startup contribution to national output and workforce formalisation.
Author information
Aarushi Manker
Research Scholar, Department of Commerce, Vels Institute of Science, Technology & Advanced Studies, Chennai.
Dr. R. V. Suganya
Assistant Professor & Research Supervisor, Department of Commerce, Vels Institute of Science, Technology & Advanced Studies, Chennai.