The India blueprint for a start-up revolution

Strategies South Africa must urgently adopt

- SANJITH HANNUMAN

WHILE South Africa struggles with 632 startups and declining funding, India — its BRICS partner facing similar challenges - has engineered one of history’s most spectacular entrepreneurial transformations. From just 500 recognised startups in 2016 to over 180 000 by 2025, India executed a deliberate strategy that South Africa must adopt if G20 commitments are to translate into genuine prosperity.

India’s staggering numbers

India’s ecosystem grew 16.8% in 2025, ranks 22nd globally with 10 196 startups, and attracted over $15.09 billion in funding. DPIIT-recognised startups exploded from 500 in 2016 to 159 157 by January 2025, creating over 1.66 million direct jobs. India now hosts over 112 unicorns and processes over 100 billion digital payment transactions annually through UPI. South Africa, with youth unemployment exceeding 50%, faces identical challenges but lacks India’s coordinated response.

The Startup India initiative

India’s transformation began January 16, 2016, when Prime Minister Modi launched Startup India - a comprehensive 19-point action plan. Tax exemptions for three years give startups breathing room. Patent filing receives 80% rebates and trademark registration 50% rebates. Self-certification allows compliance through online portals. Fast-track winding up enables closure within 90 days.

The Startup India Seed Fund Scheme supports early-stage ventures. The Fund of Funds, managed by SIDBI, funded 1 173 startups by 2024.

The Credit Guarantee Scheme guaranteed %604.16 crore as of January 2025. South Africa’s fragmented approach - where SACCI, provincial chambers, IDC, DBSA, and trade agencies operate independently - cannot compete with India’s unified platform.

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