The Indian startup ecosystem has grown from a handful of ideas into a global powerhouse over the past ten years. The phase started as a concentrated effort in cities like Delhi NCR, Mumbai and Bengaluru, but gradually it spread to smaller cities. DPIIT data reveals startups have spread across 779 districts equipped with more than 157,000 young companies.
The Startup India initiative was launched in 2016 and proved a game-changer. It was equipped with programs like the Fund of Funds for Startups and the National Deeptech Policy. The remarkable part is that startups rapidly spread in tier 2 and tier 3 cities, which were once considered underdogs in the innovation space. Startups from the smaller cities raised INR 2,202 crore from June to August 2024 alone. It was a huge leap from the INR 175 crore raised just a few months earlier.
The shift shows that innovation is not just confined to only metro cities now. Government schemes like the Pradhan Mantri Mudra Yojana and the Startup India Seed Fund Scheme have simultaneously also played a key role by providing tax benefits, simplified compliance and legal support.
The exciting part is the rise of deeptech startups in India. The startups are tackling complex global challenges such as artificial intelligence, robotics, biotechnology and quantum computing.
Tier 2 and tier 3 cities will continue to shine and deeptech could very well be India’s ticket to global dominance in technology. India’s startup story is just getting started with the right support and a growing appetite for risk-taking.
