Amardeep Singh Bhatia, secretary, department for promotion of industry and internal trade (DPIIT) talks about the government’s various schemes to give start-ups a leg up. Edited excerpts
Why would you call India a global start-up hub?
India has evolved into one of the largest start-up ecosystems, the world’s 3rd largest, in the last decade. From 500 recognised start-ups in 2016, we have moved to 1.57 lakh in nine years, generating 17.28 lakh direct jobs.
Of these start-ups 48% feature at least one woman director, with the 770-plus districts of India contributing at least 1 start-up. This reflects on the increasing inclusivity of our entrepreneurial landscape.
What initiatives have enabled this growth?
The Start-up India initiative launched in 2016 which completed nine years recently, has been a catalyst in driving the start-up movement.
For budding entrepreneurs, seed fund of around Rs 450 crore has been disbursed to around 2,500 start-ups through 213 incubators under the Start-up India Seed Fund Scheme. For funding needs in their growth stage, Fund of Funds for Start-ups Scheme provides a corpus of Rs 10,000 crore as contribution to various Alternative Investment Funds, which have invested more than Rs 21,000 crore in start-ups. Another flagship initiative, Atal Innovation Mission, includes establishing Atal Tinkering Labs and Atal Incubation Centres to promote innovation through active engagement of around 1.1 crore students.
Further, DPIIT has recently launched the Bharat Start-up Knowledge Access Registry platform to streamline interactions between start-ups, investors, mentors and government.
What is the sector coverage of these start-ups?
These start-ups are present across 56 industries, including IT [information technology] services such as IT consulting, application and product development; health care and life sciences; education such as education technology, skill development and e-learning.
Which sectors will drive the next wave of start-up growth, and why?
There has been a four times increase in patents and trademarks filing in the past six years. Today, we rank No. 4 and No. 6 globally in trademark and patent applications. India has also made significant advances in the space economy—the establishment of the Indian National Space Promotion and Authorisation Centre has been pivotal in promoting private sector participation.
The number of space start-ups has surged from just one in 2014 to 266 by 2024. Significant developments are shaping emerging-tech segments across deep tech, clean tech, agri tech, space tech and Industry 4.0.
How are start-ups in manufacturing doing and can they benefit through production-linked incentives (PLIs)?
PLI schemes across 14 manufacturing sectors have not only boosted production and manufacturing activity but have also had a multiplier effect on India’s MSME [micro, small and medium enterprises] ecosystem.
The government has been actively promoting collaboration with established corporates and businesses, particularly in manufacturing—over 50 MoUs [memorandums of understanding] have already been signed.
The government is also fostering greater innovation across sectors. The BioE3 policy shall pave the way for biotech innovations to advance towards product manufacturing; the AgriSURE scheme shall foster innovation in the rural start-up ecosystem.
What steps can be taken to encourage deep-tech start-ups?
Deep-tech start-ups, which focus on early-stage technologies, have higher initial capital requirements, higher risks on technical feasibility and require longer time to yield returns. We’re focusing on targeted measures such as a dedicated Rs 1,000 crore VC [venture capital] fund to support space ventures, while Rs 1 lakh crore financing pool announced in 2024 to encourage research, prototype development and innovation in sunrise technologies.
IndiaAI Mission’s start-up financing pillar offers stage-wise support, while NIDHI and BIRAC focus on early-stage innovation, and TIDE 2.0, GENESIS and SAMRIDH collectively provide patient capital, technical expertise and accelerated growth pathways.
Under the National Quantum Mission, proposals have been invited to foster quantum-driven innovation while the Draft National Deep Tech Start-up Policy will provide framework to address challenges faced by deep-tech start-ups.
Start-ups often cite challenges of limited access to high-quality talent and ecosystem outside major cities.
The efforts begin at the formative stage itself, with the launch of National Education Policy (NEP) 2020 which encourages holistic, multidisciplinary education and entrepreneurial mindset early on, supported by 10,000 Atal Tinkering Labs and 14,000 Institutions’ Innovation Councils.
The government is also driving capacity building through the annual States’ Start-up Ranking Framework, encouraging local ecosystems to scale their programmes and leverage region-specific strengths.
Initiatives like AIM 2.0 and State Innovation Missions boost local entrepreneurship. By combining modern infra development with skill-building, we are ensuring that opportunities and talent flourish well beyond India’s metros.