On the ninth anniversary of the Startup India mission, Union Minister for Commerce and Industry, Piyush Goyal, highlighted the significant role the initiative continues to play in driving India’s economic growth. The minister emphasized that much of the success of the Startup India mission can be attributed to key funding mechanisms, particularly the Fund of Funds for Startups (FFS).
Administered by the Small Industries Development Bank of India (SIDBI) and financed by the Government of India, this initiative has been pivotal in mobilizing private capital, with a particular focus on supporting startups in Tier II and Tier III cities. Through this approach, the government has empowered startups to scale their operations and contribute meaningfully to the nation’s economy.
Goyal highlighted the transformative power of these funding tools, noting how they have empowered startups to scale their operations and significantly contribute to the nation’s economy. He also emphasized the importance of private funding in fueling the next phase of India’s startup movement. “The Startup movement will gain momentum with more private funding in the days to come,” he added. During the event, the Minister launched the Bharat Startup Grand Challenge and the Prabhaav Factbook.
The minister also spoke about the pivotal role of private equity (PE) and venture capital (VC) in driving innovation and accelerating the growth of Indian startups. “Our collaboration with PE and VC firms has been instrumental in supporting innovation and accelerating the journey of startups from ideation to execution,” Goyal stated.
He explained that this partnership not only provides funding but also introduces global expertise and networks that help Indian startups compete internationally. Through initiatives like the BHASKAR platform, the government is connecting startups with mentorship, financial instruments, and opportunities for collaboration across the country.
Beyond their economic impact, startups have emerged as agents of change, addressing some of the most pressing challenges, including sustainability, renewable energy, healthcare, and digital transformation. “Through their innovation and resilience, they are shaping a better future for all of us,” Goyal said.
India’s startup ecosystem has experienced remarkable growth, with 76 Initial Public Offerings (IPOs) in 2024 alone. The country now ranks as the third-largest startup ecosystem globally, with 1,59,157 startups as of January 15, 2025—up from around 500 in 2016. These startups have generated 17.2 lakh direct jobs and received total funding of Rs 13 trillion from the government.
The commerce minister emphasized the government’s continued commitment to supporting the startup ecosystem, noting the expansion of technological sectors ranging from digitech to artificial intelligence. “I would like to reaffirm the Government’s unwavering commitment to the faster growth of India’s startup ecosystem and to provide support to the entrepreneurial spirit of India,” he said. Goyal credited policy-driven initiatives for positioning India as a global leader in innovation and technology-driven growth.
Looking ahead, the minister said that India is entering a crucial phase in its development, with strong macroeconomic fundamentals setting the stage for the next 25 years. “Our startups will play a crucial role in realizing the vision of a self-reliant, inclusive, and globally competitive India,” he added. The government is committed to providing all necessary support, including policy initiatives, infrastructure, and access to capital.
The commerce minister also noted India’s leadership in producing STEM graduates, with women constituting 43% of graduates. “Women are at the heart of India’s growth story,” he emphasized, pointing to targeted initiatives like the Women Entrepreneurship Platform that empower women-led startups.
The event also served as the curtain raiser for the second edition of the Startup Mahakumbh, set to begin in April. Goyal announced that 2,500 startups would participate in this event, highlighting India’s growing role as a global hub for innovation and entrepreneurship.
In addition, the Department for Promotion of Industry and Internal Trade (DPIIT) launched the PRABHAAV Factbook, a comprehensive guide to India’s startup ecosystem and its growth from 2016 to 2024. The Factbook captures the achievements of every region in India, showcasing the dynamic growth story of the country’s startup sector.
The Bharat Startup Grand Challenge was also unveiled, aiming to unleash 75 challenges across various sectors. Industry leaders and innovators will invite thinkers to solve business challenges in areas such as renewable energy, blockchain, agritech, and smart manufacturing. The challenge will provide startups with procurement opportunities, cash prizes, funding, mentorship, and networking opportunities.