An Assessment of the Rollout of the Startup Initiative in India — Evaluating Startups, Jobs, and How Funding Has Been Used

Abstract

Launched on 16 Jan, 2016 by prime minister Narender Modi, Startup India is a flagship initiative of the Government of India aimed at fostering entrepreneurship in the country. The startup initiative is a critical factor in promoting creativity, supporting women entrepreneurs, disadvantaged communities and rural businesses while also creating jobs, boosting inclusive growth, enabling easier access to business and enhancing India's global competitiveness. By 2025, India will boast the 3rd largest startup ecosystem globally after US and China. According to Startup Ecosystem in India — 2025, Maharashtra, Karnataka, Delhi & Uttar Pradesh occupy the top rank among States/UTs. This is a descriptive and analytical study based on secondary data. The application involves two individual studies – the first study is to analyse the State/UT-wise Startup Growth Countries, Employment Generated through Startup India initiative and the second study is to assess Status of State/UT-wise funds allocated & funds utilized under the Startup India Seed Fund Scheme and Fund of Funds Scheme. In assimilation to achieve the aims of the study, necessary data were collected from secondary sources. Data analysis and results finding are performed using the various Statistical method like ANOVA, Compound Annual Growth Rate and Percentage Method. According to the study, on an overall front startups in India increased from 10,604 (2019) to 34,779 (2023) at a compound annual growth rate of 33.7 per cent and total employment increased from1,23,071 (2019) to 3,90,512 (2023) at a compound annual growth rate of 32.5 per cent. Maharashtra (5,801), topped the states in startup registrations followed by Uttar Pradesh, Gujarat, Karnataka and Tamil NaduDelhi (7th overall) stood top among UT's. Although Maharashtra topped the recipient charts by number of investments under both the Seed Fund Scheme and the Fund of Funds, they had low utilisation efficiency (37.76 per cent and 34.20 per cent). The report finds that, while India’s startup landscape is absolutely booming, growth and deployment of funds across states and UTs remains uneven. According to the study, building stronger ecosystems, efficient fund allocation and supporting new states proactively is necessary if there is to be equal growth in startups across the country.