International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Beyond Policy Rhetoric: Institutional and Governance Analysis of India’s Entrepreneurial Ecosystem

Author(s) Punyamanthula Jagadeeswara Rao
Country India
Abstract Over the last few years, entrepreneurship has become a major force behind India's development story. It is seen as a critical path to economic growth through innovation, digital transformation, and job creation as the global economy continues to shift rapidly. There have been multiple government initiatives to promote entrepreneurial development, including Start-up India, Digital India, MSME reforms, and the expansion of innovation ecosystems, reflecting the government's growing interest in fostering entrepreneurship as part of its broader economic modernization and global competitiveness goals. However, as the number of entrepreneurial policies increases, the question arises whether the state's institutional capacity and governance mechanisms are developing at the same pace as its entrepreneurial policy objectives.
Using political economy and institutional governance as analytical lenses, this paper explores how recent developments, including digital platform economies, the emergence of technology-driven start-ups, the growth of venture capital, and public-private partnerships, are redefining the relationship between the state and the market in India. The paper argues that today, entrepreneurship has become a governance process rather than just an economic one, and that regulatory institutions, policy coordination, and state capacity have shaped it.
This statement explores both the substantial increase in the number of start-ups and the growth of innovative networks in India, as well as ongoing challenges, such as excessive regulations and inconsistencies in enforcement, that need to be addressed if entrepreneurship is to continue to thrive in India. In addition, the paper provides several recommendations to enhance India's entrepreneurial ecosystem.
Keywords Entrepreneurship, Governance, Political Economy, Public Policy, Inclusive Development.
Published In Volume 8, Issue 2, March-April 2026
Published On 2026-03-30
DOI https://doi.org/10.36948/ijfmr.2026.v08i02.80926
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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