India's image has changed in 10 years, youth are no longer asking for jobs, they are distributing them... This government scheme has done wonders!

Over the past decade, "Startup India" has transformed the nation. According to government data, while there were only 500 startups in 2016, today their number has surpassed 200,000. Most notably, 50% of these businesses originated in small towns. With funding and easy regulations, youth have created 2.1 million jobs, demonstrating that India is no longer a job-seeker, but a job-giver.

There was a time when starting a business or coming up with a new idea in India was considered a Herculean task. Lack of capital, hassles with government offices, and a multitude of regulations were the reasons why even the best ideas died. 

But in the last 10 years, this scenario has completely changed. Data released by the government on the completion of a decade of the 'Startup India' initiative shows how India has become the third largest startup ecosystem in the world. When this mission began in 2016, there were barely 500 recognized startups in the country. Today, in 2025, this number has increased to over 200,000.

The revolution spread from big cities to small towns.

It was commonly believed that businesses and startups were limited to major metropolises like Bengaluru, Mumbai, or Delhi. However, over the past decade, Startup India has shattered this myth. 

According to recent data, more than 50 percent of the country's startups now originate from Tier 2 and Tier 3 cities. This means that entrepreneurship is no longer the exclusive domain of large cities; 

young people from smaller towns are also pursuing their ideas. Women's participation in this field has also been impressive. Reports show that more than 45 percent of recognized startups have at least one female director.

Government becomes the biggest angel investor

Before 2016, funding was the biggest challenge for any new business. Bank loans were difficult to obtain, and private investors were hesitant to take risks. To bridge this gap, the government stepped in and extended a helping hand. 

Launched in 2021, the Startup India Seed Fund Scheme created a corpus of ₹945 crore. Today, through 219 incubators across the country, this funding is helping to prototype new ideas and bring them to market.

Additionally, the ₹10,000 crore "Fund of Funds" managed by SIDBI has facilitated private investment. As a result, Indian startups have attracted over $150 billion in private investment over the past 10 years. Now, if young people have a strong idea, lack of funding is no longer a barrier.

Freedom from the shackles of rules

The biggest relief for startups has come from the easing of regulations. Over 47,000 compliances have been reduced over the past few years, and 4,458 legal provisions have been decriminalized. 

Startups are now free to certify themselves under nine labor laws and three environmental laws, eliminating the need for frequent government inspections. Furthermore, the exit mechanism for a business that fails to thrive has been simplified. Previously, it used to take years, and can now be completed within 90 days.

The government has not only eased regulations but has also emerged as a major customer. Startups have generated over ₹38,500 crore in business through the Government e-Marketplace (GeM). This has also opened up opportunities for new players in difficult sectors like defense, space, and agri-tech.

There are over 120 unicorns in India.

Today, India has more than 120 unicorns (companies valued at over $1 billion), with a combined valuation of over $350 billion. Startups have created over 2.1 million jobs to date. 

The startup attrition rate in 2025 was the lowest in five years, indicating that Indian companies are no longer just experimenting but are building businesses with sustainability and longevity. These startups are poised to play a crucial role in making India a $7.3 trillion economy by 2030.