Start-up Success or Start-up Stress

India’s Entrepreneurial Dilemma

- Dr Pinky Bahuguna

Over the past decade, India has emerged as a dynamic hub for startup innovation. What began as a modest movement has grown into one of the world's most active entrepreneurial ecosystems.

With strong policy support, rising investor interest, and digital acceleration, India now ranks among the top three countries globally in tech funding. Since the launch of the Startup India initiative in 2016, more than ?150 billion has been directed toward supporting new ventures, helping to fuel job creation, technological innovation, and a shift toward a digitally enabled economy.

This momentum has led to the creation of over 100 unicorns and fostered a bold startup culture, especially among young professionals and first-time entrepreneurs. However, alongside this success lies a set of emerging concerns that merit attention. As the number of startups grows, so too does the number of those shutting down. By late 2024, over 5,000 startups registered under the government's flagship programme had ceased operations. Though high failure rates are not uncommon in startup ecosystems worldwide, they underscore the need to examine deeper structural challenges.