Relevance: GS III (Economy – Entrepreneurship, Growth & Development) | Source: The Hindu / PIB

1. Context: A Decade of ‘Startup India’

Marking the 10th Anniversary of the Startup India initiative (launched on January 16, 2016), the Prime Minister highlighted the sector’s evolution from a policy push to an economic revolution. The year 2025 witnessed a historic spike, with nearly 44,000 new startups registered—the highest annual addition ever.

2. The Ecosystem Today

  • Global Standing: India has solidified its position as the 3rd largest startup ecosystem in the world (after the US and China).
  • Maturation: The ecosystem is moving beyond just “number of entities.” Companies are maturing into Unicorns (Valuation > $1 Billion) and exiting via IPOs (Initial Public Offerings), signaling financial sustainability.
  • Impact: The sector is now a critical engine for job creation and solving local challenges through indigenous technology.

UPSC Value Box

Concept / Term

Relevance for Prelims
Startup India Initiative Launched in 2016. Nodal Agency: DPIIT (Ministry of Commerce & Industry). Goal: Simplification, Funding Support, and Industry-Academia Partnership.
Official Definition An entity is considered a “Startup” by DPIIT for up to 10 years from incorporation, provided its turnover has not exceeded ₹100 Crore in any financial year.
Unicorn vs. Decacorn Unicorn: Valuation > $1 Billion.

Decacorn: Valuation > $10 Billion.
National Startup Day Celebrated on January 16th annually to celebrate the spirit of entrepreneurship.

Q. With reference to the “Startup India” initiative and the ecosystem in India, consider the following statements:

  1. The initiative is implemented by the Department for Promotion of Industry and Internal Trade (DPIIT).
  2. An entity is recognized as a “Startup” by the government for a period of up to 20 years from the date of its incorporation.
  3. India currently holds the position of the second-largest startup ecosystem in the world.

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Correct Answer: (a)

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