Impact of Government Policies on the Growth of Startups in India: An Empirical and Ecosystem Perspective
Over the past decade, India has emerged as one of the world’s largest startup ecosystems, contributing significantly to economic growth, innovation, and employment generation. Government policies and initiatives have played a decisive role in shaping this entrepreneurial landscape by creating an enabling institutional environment. This study examines the impact of major policy initiatives such as Startup India, Make in India, Digital India, Atmanirbhar Bharat Abhiyan, and Stand-Up India on startup growth in India. Using a mixed-methods research design, the study combines survey data from startup founders and investors with qualitative insights from policymakers, incubator managers, and industry experts. The findings indicate that government interventions have catalyzed access to finance, improved ease of doing business, strengthened innovation capacity, and enhanced global competitiveness of Indian startups. However, persistent challenges such as regulatory bottlenecks, delays in fund disbursement, limited awareness of schemes among grassroots entrepreneurs, and regional disparities continue to constrain the sustainability and scalability of startups. The study contributes to the entrepreneurial ecosystem literature by highlighting the institutional role of government in shaping startup outcomes and offers policy recommendations for creating more inclusive and adaptive support mechanisms.
Keywords: Startups, Government Policies, Entrepreneurship, Innovation, Digital India, Atmanirbhar Bharat, Startup India, Entrepreneurial Ecosystem
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