India Start-up Ecosystem Grows to 2.5 Lakh Start-ups: IIT Madras Report
Chennai, May 2026: India’s start-up ecosystem has transformed into one of the world’s fastest-growing innovation hubs, according to a new report released by the Indian Institute of Technology Madras (IIT Madras) through its Centre for Research on Start-ups and Risk Financing (CREST).
The report, titled “2016–2025: The Start-up Decade – The Making of a Bold and Powerful India,” highlights the rapid expansion of India’s entrepreneurial landscape over the past decade.
Strong Growth in Start-up Numbers and Funding
The study shows that India’s start-up base has grown significantly, rising from nearly 10,000 start-ups in 2016 to over 2.5 lakh by 2025. During the same period, the number of funded ventures increased from around 2,000 to 75,000, reflecting a sharp rise in investor participation and ecosystem maturity.
Key Drivers of Ecosystem Growth
The report, led by Thillai Rajan, highlights several structural drivers behind this growth, including:
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Rise in women-led start-ups and founders
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Expansion of innovation beyond major metro cities
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Increasing DPIIT recognition of start-ups
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Strengthening role of incubators, investors, and banking institutions
The findings underline how India’s start-up ecosystem has become more inclusive and geographically diverse over the last decade.
Report Launch at IIT Madras
The report was released during The Confluence Symposium on Start-ups and Innovation at IIT Madras.
It was unveiled by Srini Raju along with Sudatta Mandal, who emphasized the importance of resilience, collaboration, and long-term vision in strengthening India’s entrepreneurial ecosystem.
Outlook for India’s Innovation Economy
Experts at the symposium noted that India’s start-up growth reflects a structural shift toward innovation-led economic development, supported by policy reforms, digital infrastructure, and increasing access to capital.
The report concludes that India is now positioned as a global leader in start-up creation, with sustained momentum expected in the coming decade.