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:
- The initiative is implemented by the Department for Promotion of Industry and Internal Trade (DPIIT).
- An entity is recognized as a “Startup” by the government for a period of up to 20 years from the date of its incorporation.
- 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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