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India Crosses 2 Lakh Startups by Dec 2025, Marks a Decade of Startup India

Written by: Nikitha DeviUpdated on: 19 Jan 2026, 6:42 pm IST
India crosses 2 lakh startups by 2025; Tier-II/III cities drive 50% growth as Startup India completes a decade of innovation and jobs.
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India has firmly established itself as one of the world’s largest startup ecosystems with over 2 lakh DPIIT-recognised startups as of December 2025. What began in 2016 with the launch of the Startup India Initiative has evolved into a comprehensive support framework covering ideation, funding, mentorship, incubation, and scale-up opportunities. 

The initiative has played a decisive role in creating an enabling environment for innovators, first-generation entrepreneurs, and technology-driven enterprises across the country.

Entrepreneurship Beyond Metros

A remarkable feature of this growth has been the expansion of startups beyond traditional metropolitan hubs. Nearly 50% of recognised startups now originate from Tier-II and Tier-III cities, signalling the democratisation of entrepreneurship. 

Smaller cities and towns are emerging as new centres of innovation, supported by improved digital connectivity, access to markets, and targeted government programmes. This shift is helping create local employment and reducing regional economic disparities.

Role of Public Programmes and AIM 2.0

Government initiatives have strengthened the ecosystem at the grassroots level. Programmes such as SVEP, ASPIRE, and PMEGP are enabling micro-enterprises, women-led ventures, and rural businesses to access finance and markets. 

AIM 2.0 focuses on piloting new solutions to address ecosystem gaps while scaling proven models through collaboration with industry, academia, and state governments. These efforts are aligning entrepreneurship with national priorities of inclusive and sustainable development.

Startups as Engines of Growth

Startups have become a critical pillar of India’s economic transformation by driving innovation, digital adoption, and job creation.

Major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR continue to lead investment and technology development, while emerging clusters are adding depth to the ecosystem. National Startup Day on January 16, 2026, marks a landmark moment, celebrating a decade of policy continuity and entrepreneurial energy that supports the vision of Viksit Bharat 2047.

Also ReadIndia Draws $51 Billion FDI in 6 Months as Manufacturing, Startups Gain Ground!

Conclusion

After ten years, India’s startup landscape reflects structural change rather than just numerical growth. Backed by digital public infrastructure, demographic advantage, and steady reforms, startups are integrating with core sectors of the economy. As India moves toward becoming a $7.3 trillion economy by 2030, the startup community will remain central to innovation, competitiveness, and inclusive prosperity.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Jan 19, 2026, 1:10 PM IST

Nikitha Devi

Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.

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