OPINION | Startup India: A decade of democratising ambition

India has become the third largest startup ecosystem in the world

January 16 marks the 10th year anniversary of Startup India, the flagship government scheme to support Indian entrepreneurship and startups. Ten years ago, 'startup' was a niche buzzword. Today, it is the heartbeat of the Indian economy. As we mark the 10th anniversary of Startup India on January 16, we aren't just celebrating a government scheme; we are celebrating a decade that redefined the Indian dream.

As of January 2026, marking a decade since the scheme’s inception, the data presents a staggering narrative of scale. From fewer than 500 recognised entities in 2016, the Department for Promotion of Industry and Internal Trade (DPIIT) now recognises over 2.07 lakh startups. India has become the third largest startup ecosystem in the world – in terms of capital number of startups and unicorns, behind only the US and China.

The combined valuation of all Indian startups is around $700 billion, with these startups raising around $170 billion of capital since 2014. The Prime Minister’s clarion call for the new age economy to contribute $1 trillion to India’s GDP by 2032 will come to fruition.

The true impact isn't just financial; it's behavioural. Forget the Camellias - the most valuable real estate in India today is the 6-inch glass screen in your pocket. From food delivery to stock broking, Indian startups now dominate the daily habits of a billion people. No other sector has completely rewired behaviour and interactions the way startups have over the past 10 years.

This rise has been buoyed by marked changes to India’s regulatory philosophy. Earlier, startup shareholders had to endure “Angel Tax” - a tax on capital raises, tax rates that were 2.42 times the rate paid by listed market investors, and a business climate that pushed founders to domicile overseas. Now, tax rates have aligned, domestic capital has begun to pour in and last year, startups paid large tax bills to flip back to India and list. Deregulation and open policies have unshackled Indian entrepreneurial spirts.

Ultimately, Startup India’s greatest legacy is intangible. For decades, the average Indian child aspired to be a cricketer or a Bollywood star. Today, they aspire to be founders. We haven't just built companies; we have democratised ambition.

(Siddarth Pai is the Founding Partner, CFO, and ESG Officer of 3one4 Capital.)

Views are personal and do not represent the stand of this publication.