International Journal For Multidisciplinary Research

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

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Effectiveness of Startup India in Promoting Entrepreneurship: A Critical Policy Analysis

Author(s) E. M. Harish Babu, Prof. S. Raghunatha Reddy
Country India
Abstract Entrepreneurship plays a vital role in driving economic growth, innovation, and employment generation in emerging economies such as India. Recognizing this, the Government of India launched the Startup India initiative in 2016 to create a supportive ecosystem through policy interventions, financial incentives, and institutional support. The present study critically evaluates the effectiveness of Startup India in promoting entrepreneurship, focusing on its outcomes, implementation, and sustainability.
The study is based on secondary data collected from government reports, industry publications, and academic literature. A descriptive and analytical approach is adopted, supported by thematic analysis and trend evaluation. The findings indicate a significant expansion of the startup ecosystem, with recognized startups increasing from 471 in 2016 to over 2.23 lakh by 2026. This growth has been accompanied by substantial employment generation, exceeding 23 lakh jobs, reflecting the increasing economic contribution of startups.
The study also highlights the role of policy measures such as funding schemes, regulatory simplification, and institutional support in facilitating entrepreneurial activity. However, several challenges persist, including limited access to early-stage funding, delays in implementation, regulatory complexities, and high failure rates among startups. Additionally, skill gaps and weak industry–academia linkages constrain long-term sustainability.
The study concludes that while Startup India has successfully catalyzed entrepreneurial growth, its effectiveness is moderated by implementation and structural challenges. Continuous policy refinement and stronger ecosystem integration are essential to ensure sustainable and inclusive entrepreneurial development.
Keywords Startup India; Entrepreneurship; Public Policy; Innovation Ecosystem; India
Published In Volume 8, Issue 2, March-April 2026
Published On 2026-03-30
DOI https://doi.org/10.36948/ijfmr.2026.v08i02.80948
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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