Celebrating India's 79th Independence Day: The Rise of an Entrepreneurial Nation

As the tricolor unfurls across the nation on this 79th Independence Day, we at RisingIndia pause to reflect not just on our political freedom but on the burgeoning economic independence that defines modern India. From the historic Red Fort address to the quiet hum of innovation in co-working spaces, today marks a celebration of self-reliance—or Atmanirbhar Bharat—fueled by an unprecedented surge in entrepreneurship. With over 187,219 registered startups as of August 2025, India's startup ecosystem stands as a powerful symbol of resilience, creativity, and global ambition. As a venture studio dedicated to nurturing sustainable startups in Tier II and III cities, RisingIndia is proud to be at the forefront of this revolution. In this article, we delve into the journey of India's entrepreneurial landscape, its current milestones, the role of government initiatives, and the untapped potential in smaller cities, while highlighting how organizations like ours are bridging gaps to build a truly inclusive economy.

The Evolution of India's Startup Ecosystem: From Seeds of Freedom to Global Powerhouse

India's tryst with entrepreneurship didn't begin in the digital age; it echoes the spirit of independence itself. Post-1947, the nation focused on heavy industries and public sector undertakings to achieve self-sufficiency. However, the liberalization reforms of 1991 marked a pivotal shift, opening doors to private enterprise and foreign investment. Fast-forward to the 21st century, and the launch of the Startup India initiative in 2016 by Prime Minister Shri Narendra Modi ignited a fire that has since transformed the economic narrative.


The Startup India initiative, launched in 2016, has been a game-changer, providing a framework of financial, legal, and structural support. Key schemes like the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS) have collectively infused the ecosystem with the necessary capital and confidence. These initiatives are not just about funding; they're about de-risking the journey of a founder, making it possible for audacious ideas to take flight.

Furthermore, the rise of specialized sectors like Generative AI is a clear indicator of India's readiness to lead in frontier technologies. In the first seven months of 2025 alone, Indian GenAI startups raised $524 million, the highest in the last five years. This demonstrates a shift towards deep technology and a global-first mindset, where Indian founders are building solutions not just for the domestic market, but for the world.

Today, India's startup story is one of exponential growth. According to the latest data from the Startup India portal, the number of DPIIT-recognized startups has crossed 187,219, with more than 1,000 new registrations added monthly on average. This figure represents a staggering increase from just 452 startups in 2016, underscoring a compound annual growth rate (CAGR) of over 100% in the early years, stabilizing to a robust 15-20% recently amid global economic challenges. These startups span diverse sectors: fintech (leading with 20% market share), edtech, healthtech, agritech, and sustainability-focused ventures, aligning perfectly with national priorities like digital inclusion and climate action.


What makes this growth remarkable is its contribution to employment and GDP. Startups have created over 1.5 million direct jobs and indirectly supported millions more through supply chains and gig economies. A 2024 NASSCOM report projected that by 2025, India's startup ecosystem could add $1 trillion to the economy, positioning the country as the third-largest startup hub globally after the US and China. On this Independence Day, these numbers aren't just statistics—they're a declaration of economic sovereignty, where young innovators are scripting India's future.

Atmanirbhar Bharat: Government Initiatives Driving the Startup Boom

The correlation between India's struggle for independence and its modern-day entrepreneurial surge is profound. The call for 'Swadeshi' during the freedom movement, championed by Mahatma Gandhi, was a plea for self-reliance and the promotion of indigenous products. Today, that same spirit is echoed in the 'Make in India' and 'Atmanirbhar Bharat Abhiyan' initiatives, inspiring a new generation to build homegrown companies that can compete on the world stage.

Just as our freedom fighters fought for the right to self-govern, today's entrepreneurs are fighting to solve complex problems, create jobs, and build a more prosperous and self-reliant India. They are the new architects of our nation's destiny, using technology, innovation, and unwavering determination to build a "Viksit Bharat" (Developed India) by 2047.

The ethos of Atmanirbhar Bharat, introduced in 2020 amid the COVID-19 pandemic, has been the bedrock of this entrepreneurial surge. This self-reliance campaign emphasizes local manufacturing, innovation, and vocal-for-local products, seamlessly integrating with Startup India. Key government schemes have provided the necessary scaffolding:

• Funding and Incentives: The Fund of Funds for Startups (FFS) has committed over ₹10,000 crore to support early-stage ventures, while tax exemptions under Section 80-IAC offer a three-year holiday on profits. Additionally, the MSME Idea Hackathon and schemes like NIDHI (National Initiative for Developing and Harnessing Innovations) provide grants up to ₹15 lakh for prototypes, democratizing access to capital.
  

• Ecosystem Building: Initiatives like the Atal Innovation Mission (AIM) have established over 10,000 Atal Tinkering Labs in schools, fostering innovation from the grassroots. The Bharat Startup Ecosystem Registry further streamlines recognition and benefits, ensuring startups in remote areas aren't left behind.
  

• Sector-Specific Boosts: In agritech, for instance, the Agri Grand Challenge supports startups addressing farmer challenges, while the Digital India program has propelled fintech unicorns like Paytm and Razorpay. As of 2025, India boasts over 120 unicorns (startups valued at $1 billion+), with decacorns like Flipkart exemplifying homegrown success.
  
  

These policies have not only accelerated growth but also encouraged inclusivity. Women-led startups now constitute 18% of the total (up from 10% in 2019), and over 50% of recognized startups hail from Tier II and III cities, breaking the urban monopoly on innovation.

The Untapped Potential: Startups in Tier II and III Cities

While metros like Bengaluru, Mumbai, and Delhi have long been startup hotspots, the real story of India's entrepreneurial independence lies in its smaller cities. Places like Indore, Coimbatore, Jaipur, and Bhubaneswar are emerging as vibrant hubs, driven by lower operational costs, abundant talent pools from local universities, and government incentives like the Startup Village Entrepreneurship Programme (SVEP).

Statistics paint an optimistic picture: According to a 2025 KPMG report on India's startup landscape, Tier II/III cities account for 55% of new registrations, up from 40% in 2022. These regions are innovating in niche areas—sustainable agriculture in Punjab's smaller towns, handicraft e-commerce in Rajasthan, and waste management solutions in Uttar Pradesh. However, challenges persist: limited access to mentorship, funding biases toward metros, and infrastructure gaps.

This is where venture studios like RisingIndia step in. As a think tank and venture studio, we focus exclusively on sustainable entrepreneurship in Tier II/III cities. Our model goes beyond traditional incubators—we co-create ventures, provide end-to-end support from ideation to scaling, and build ecosystems through partnerships with local governments and investors.

In the past year alone, we've supported over 50 founders, facilitated funding, and launched initiatives like the "Rural Innovation Challenge," which facilitates awards grants for startups.

By emphasizing sustainability, we ensure these ventures not only generate profits but also create social impact, aligning with the UN Sustainable Development Goals (SDGs) and India's net-zero ambitions by 2070.

Challenges Ahead and the Path to a Trillion-Dollar Ecosystem

No revolution is without hurdles. India's startups face issues like regulatory complexities, talent retention amid brain drain, and funding winters influenced by global recessions. The 2023-2024 dip in venture capital (down 35% from 2022 peaks) highlighted vulnerabilities, yet resilience shone through with bootstrapped models and government bailouts.

Looking forward, the future is bright. Projections from PwC indicate that by 2030, India could have 1 million startups, contributing 5-7% to GDP. Embracing technologies like AI, blockchain, and green energy will be key. For Tier II/III cities, enhanced connectivity via 5G rollout and schemes like Smart Cities Mission will unlock further potential.

At RisingIndia, we're committed to this vision. On this Independence Day 2025, as we honor the sacrifices of our freedom fighters, let's pledge to nurture the entrepreneurial spirit that makes India truly Atmanirbhar. With 187,219 startups and counting, we're not just dreaming of a developed nation—we're building it, one innovation at a time. RisingIndia invites you to join this journey: whether as a founder, investor, or supporter, let's collaborate to elevate Tier II/III cities and create a sustainable, inclusive economy.

Our upcoming programs include a pan-India accelerator for women entrepreneurs and collaborations with international VCs to bring global expertise to local innovators.