AUGUST 20258TSejal Singh B G, Copy Editor, Startupcityhe Indian tech and entrepreneurial ecosystem has experienced a massive shift in last ten years, remodelling the story of Indian wealth and innovation. With over 150 billion dollars in venture capital, the rise of more than a hundred unicorns, and almost 1.85 lakhs startups identified by the Department of Promotion of Industry and Internal Trade (DPIIT), India has become the third-largest startup ecosystem in the world outpacing established giants and changing the perception of the world. Such a surging growth is fuelled by a combination of aggressive policy changes, digital infrastructure breakthroughs, youthful and ambitious talent base and healthy investor demand. But what exactly propelled this meteoric rise and what does this momentum mean for India's future as a global innovation powerhouse?A Decade of Funding Fueling GrowthIndian firms and growth companies raised over 150 billion dollars between 2016 and mid 2025 according to government comments such as those of the Commerce Minister Piyush Goyal. Such an influx has fuelled growth across industries, produced approximately 1.66 million direct employment opportunities, and will help to generate between 10 and 15 percent of India GDP growth over the next five between years FY 16 and FY 23.The Unicorn Club: Over 110 Success StoriesAs of early 2025, India hosts 110+ unicorn startups firms valued at over US $1 billion spanning fintech, health tech, SaaS, enterprise tech, and more. A figure of 118 unicorns was noted just by late July 2025, per real-time trackers like Tracxn. These firms collectively command valuations beyond $350 billion. Importantly, fewer than 20 of them are consistently profitable highlighting an ongoing maturation phase.Government Triggers: Startup India, Digital India & Innovation MissionsTwo flagship initiatives Startup India and Digital India alongside schemes like Atal Innovation Mission (AIM) and Stand Up India, form the backbone of India's policy support for innovation.· Startup India, launched in January 2016, underscores regulatory reform, incubation support, tax exemptions (three years income tax relief), and a Rs 10,000 crore Fund of Funds for early-stage finance. As of January HOW POLICY SHIFTS ARE POWERING INDIA'S INDUSTRIAL GROWTH FROM CODE TO CLAUSE Column
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