GS 3: EconomyGS 2: GovernancePrelims

Highest annual spike saw 44,000 start-ups added last year: Modi, Pg1

India witnesses record 44,000 new start-up registrations in 2025, marking a decade of Startup India initiative success.

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Key Highlights:

  • Nearly 44,000 start-ups were registered in 2025, the highest annual addition since the launch of Startup India.
  • Startup India, launched on January 16, 2016, aims to foster innovation and promote entrepreneurship.
  • India has become the third-largest start-up ecosystem in the world.
  • The number of start-ups has grown from fewer than 500 ten years ago to over 200,000 today.
  • India has nearly 125 active unicorns, compared to only four in 2014.
  • Over ₹25,000 crore has been invested through the Fund of Funds for start-ups.

Detailed Insights:

  • The Startup India initiative has spurred a significant increase in risk-taking and entrepreneurial spirit across the country.
  • The Fund of Funds 2.0, approved in April 2025 with a corpus of ₹10,000 crore, will focus on deep tech areas.
  • Areas of focus for the Fund of Funds 2.0 include artificial intelligence, machine learning, quantum technologies, defence, and aerospace.
  • The government aims to provide more risk capital to start-ups in deep tech, which typically require longer periods to reach the proof-of-concept stage.
  • The growth of start-ups is driving innovation, creating jobs, and contributing to India's economic growth.

Key Concepts Involved:

  • Start-up: A newly established business, typically technology-oriented, with high growth potential.
  • Unicorn: A privately held start-up company valued at over $1 billion.
  • Deep Tech: Start-ups based on substantial scientific or engineering advances, often requiring long development cycles.
  • Fund of Funds: A fund that invests in other funds, providing diversified exposure to various investment strategies or sectors.
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