{"id":4027,"date":"2026-07-21T15:49:49","date_gmt":"2026-07-21T10:19:49","guid":{"rendered":"https:\/\/journal.ipem.edu.in\/management\/?page_id=4027"},"modified":"2026-07-29T14:02:35","modified_gmt":"2026-07-29T08:32:35","slug":"impact-of-government-policies-on-the-growth-of-startups-in-india-an-empirical-and-ecosystem-perspective","status":"publish","type":"page","link":"https:\/\/journal.ipem.edu.in\/management\/impact-of-government-policies-on-the-growth-of-startups-in-india-an-empirical-and-ecosystem-perspective\/","title":{"rendered":"Impact of Government Policies on the Growth of Startups in India: An Empirical and Ecosystem Perspective"},"content":{"rendered":"\t\t
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Impact of Government Policies on the Growth of Startups in India: An Empirical and Ecosystem Perspective<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t Dr. Shiwangi Sharma\r\n\r\n\r\n\r\n\r\n

Volume 20, Issue 1, July 2026<\/a> | <\/span>Pages: 1-09\r\n <\/p>\r\n \r\n \t

DOI: 10.61691\/IPEM_Mgmt.20.2026.1-9<\/a><\/p>\r\n\r\n

Published Online: July, 2026<\/span><\/p>\r\n

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  • \n \n \n \n Author Affiliations<\/span> <\/li>\n
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    Author Details<\/b><\/p>

    Dr. Shiwangi Sharma<\/div>
    Manav Rachna International Institute of Research and Studies<\/div>
    Email: shiwangisharma.slm@mriu.edu.in<\/div><\/div> <\/div>\n\t\t \n
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    Over the past decade, India has emerged as one of the world\u2019s 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.<\/p>

    Keywords: Startups, Government Policies, Entrepreneurship, Innovation, Digital India, Atmanirbhar Bharat, Startup India, Entrepreneurial Ecosystem<\/p> <\/div>\n\t\t \n

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    1. Acs, Z. J., Autio, E., & Szerb, L. (2014). National systems of entrepreneurship: Measurement issues and policy implications. Research Policy, 43(3), 476\u2013494. https:\/\/doi.org\/10.1016\/j.respol.2013.08.016<\/p><\/li>

    2. Ayyagari, M., Demirg\u00fc\u00e7-Kunt, A., & Maksimovic, V. (2011). Small vs. young firms across the world: Contribution to employment, job creation, and growth (World Bank Policy Research Working Paper No. 5631). The World Bank.<\/p><\/li>

    3. Digital India. (2022). Digital infrastructure and startup growth in India. Ministry of Electronics and Information Technology.<\/p><\/li>

    4. Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). The regulation of entry. The Quarterly Journal of Economics, 117(1), 1\u201337. https:\/\/doi.org\/10.1162\/003355302753399436<\/p><\/li>

    5. Government of India. (2023). Startup India: Annual report. Ministry of Commerce and Industry.<\/p><\/li>

    6. Government of India. (2024). Startup India: Action plan and policy framework. Ministry of Commerce and Industry.<\/p><\/li>

    7. Isenberg, D. J. (2011). The entrepreneurship ecosystem strategy as a new paradigm for economic policy: Principles for cultivating entrepreneurship. Babson Entrepreneurship Ecosystem Project, Babson College.<\/p><\/li>

    8. Kumar, S., & Kaur, P. (2020). Government initiatives and startup ecosystem in India: A critical analysis. Journal of Entrepreneurship and Innovation in Emerging Economies, 6(2), 150\u2013168. https:\/\/doi.org\/10.1177\/2393957520928508<\/p><\/li>

    9. Lerner, J. (2009). Boulevard of broken dreams: Why public efforts to boost entrepreneurship and venture capital have failed\u2014and what to do about it. Princeton University Press.<\/p><\/li>

    10. National Association of Software and Service Companies. (2022). Indian startup ecosystem report. NASSCOM.<\/p><\/li>

    11. OECD. (2021). Entrepreneurship policies for innovation-driven growth. OECD Publishing. https:\/\/doi.org\/10.1787\/9789264206623-en<\/p><\/li>

    12. Rodrik, D. (2004). Industrial policy for the twenty-first century (CEPR Discussion Paper No. 4767). Centre for Economic Policy Research.<\/p><\/li>

    13. Stam, E. (2015). Entrepreneurial ecosystems and regional policy: A sympathetic critique. European Planning Studies, 23(9), 1759\u20131769. https:\/\/doi.org\/10.1080\/09654313.2015.1061484<\/p><\/li>

    14. World Bank. (2022). Doing business and entrepreneurial ecosystems in emerging economies. The World Bank Group.<\/p><\/li><\/ol> <\/div>\n\t\t \n

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