Startups in Indian Ecosystem: Government Support through Various Plans & Policies

[Dr. Punit Kumar Dwivedi, Professor & Group Director, Modern Group of Institutions, Indore -National Mentor & State Chief (Malwa)- SAVISHKAR India]


Startups are the backbone of any economy, and India is no exception. The Indian ecosystem has been witnessing a surge in the startup culture, and the government has been playing a key role in supporting it. The government has taken several initiatives to encourage entrepreneurship in the country, especially after the launch of the Startup India campaign in 2016. This article aims to analyze the role of government policies like the National Role of Startup India, AIM, NITI Aayog, and DST in supporting the startup ecosystem in India with relevant sector-wise data to provide insights into how these policies have impacted the ecosystem.

National Role of Startup India:

Startup India is an ambitious initiative by the government to promote entrepreneurship and startup culture by creating an enabling ecosystem. The campaign was launched on January 16, 2016, by Prime Minister Narendra Modi. The objective of the campaign is to create a conducive environment for startups to grow and create more employment opportunities. Under this campaign, the government has taken several measures like simplifying the registration process, easing compliance with regulations, providing tax benefits, and creating a fund of funds to support startups.

AIM (Atal Innovation Mission):

The Atal Innovation Mission (AIM) is another flagship initiative launched by the government to promote innovation and entrepreneurship in the country. AIM aims to create an ecosystem of innovation and entrepreneurship by fostering networking, knowledge exchange, and partnerships between startups, corporates, investors, academia, and the government. The mission focuses on creating a culture of innovation, funding innovative ideas, and providing mentorship and incubation support to startups.

NITI Aayog:

NITI Aayog is the premier think-tank of the government of India, which plays a critical role in catalyzing policy reforms and promoting economic growth in the country. The Aayog has also been playing a significant role in supporting the startup ecosystem in India. NITI Aayog has been working closely with various stakeholders to create a supportive ecosystem for startups. It has been launching several initiatives like Startup Weekend, Women Entrepreneurship Platform, and Startup Grand Challenge to promote entrepreneurship in the country.

DST (Department of Science and Technology):

The Department of Science and Technology (DST) is another important government agency that has been supporting startups in India. DST has been providing funding support to startups through its various schemes like the Technology Development Board (TDB), Science and Engineering Research Board (SERB), and National Research Development Corporation (NRDC). DST has also been partnering with various institutions to provide incubation and mentorship support to startups.

Impact of Government Policies on Indian Startup Ecosystem:

The initiatives taken by the government have had a significant impact on the Indian startup ecosystem. Since the launch of Startup India campaign in 2016, more than 50,000 startups have been registered. According to a report by Nasscom, India’s startup ecosystem ranks third-largest in the world, with more than 12,000 startups in the country. The ecosystem has witnessed a surge in funding, attracting more than $10 billion in investments in 2019 alone.

The impact of government policies is evident in various sectors. The government has been promoting start-ups in key sectors like agriculture, health, education, and many more to promote innovation and generate employment. Some of the sectors that are witnessing tremendous growth in startups are e-commerce, fintech, health tech, SaaS, edtech, and agritech.


The government has been playing a pivotal role in supporting the Indian startup ecosystem. The initiatives taken by the government like Startup India, AIM, NITI Aayog, and DST have brought about significant changes in the startup culture in India. These policies have created a favorable environment for startups, thus contributing to economic growth and employment generation. The government’s focus on promoting start-ups in key sectors is aligning with the national agenda of building self-reliant India. The future of the Indian startup ecosystem looks promising, thanks to the unwavering support from the government.

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