Startups in India are increasingly turning to private investors, receiving more than 3.8 times the funding compared to government schemes, according to DPIIT Secretary Amardeep Singh Bhatia. This reflects strong private sector interest in the rapidly growing Indian startup ecosystem.
Ahead of the 10th anniversary of the Startup India initiative, Bhatia highlighted the sector’s remarkable growth. The number of recognized startups has risen from around 400 in 2016 to over 200,000 today. This expansion has been supported by a stronger Alternate Investment Fund (AIF) ecosystem, along with government initiatives such as the Fund of Funds scheme and income tax benefits.
The focus is increasingly on deep-tech innovation to boost domestic manufacturing. Bhatia noted that startup valuations, or ‘unicorn’ status, can be volatile, stressing the importance of leveraging the domestic market to produce new products. DPIIT is facilitating the translation of research and development from laboratories into incubators to support this shift.
The government is also engaging with funds to provide long-term patient capital and plans to facilitate 75 corporate-sponsored grand challenges this year. Foreign Direct Investment (FDI) has also been strong, totaling $51 billion in the past six months. The broader goal is to encourage startups to innovate, provide shared facilities, and supply components for larger corporations, thereby strengthening India’s self-reliant manufacturing ecosystem.
