Why in News? Recently, the Government of India has committed Rs. 7,385 crores under Fund of Funds for Startup India Investment, launched in 2016, for 88 Alternative Investment Funds (AIFs). What is Fund of Funds for Startup? Performance What is Alternate Investment Funds AIF? What is the State of Startups in India? How Does FFS Work? Future Prospects of FFS Conclusion The Fund of Funds for Startups (FFS) is a significant initiative to boost Indian startups by ensuring better access to capital. While there are challenges in implementation, its impact on fostering innovation, entrepreneurship, and employment is undeniable. As India’s startup ecosystem grows, FFS will continue to play a crucial role in making India a global startup powerhouse.
Prime Minister’s Internship Scheme
Context Data from the Controller General of Accounts show severe underutilization of funds under the Prime Minister’s Internship Scheme (PMIS), pointing to weaknesses in the scheme’s design, demand, and implementation barely a year after its launch. What is the Prime Minister’s Internship Scheme (PMIS)? Key Concerns Regarding the Prime Minister’s Internship Scheme (PMIS) India’s Major Skill Development Initiatives Measures to Strengthen the Prime Minister’s Internship Scheme (PMIS) Conclusion
Reimagining India’s Consumer Price Index
Introduction The Consumer Price Index (CPI), which measures changes in retail prices, was 1.33% year-on-year in December 2025. This is much lower than the Reserve Bank of India’s target range of 2% to 6%, showing that overall price pressures in the economy are quite low. However, this headline figure does not show the full picture. There is still negative food inflation and differences between rural and urban price trends, which make policymaking more complex. A revised CPI series with base year 2024 is expected to be released soon. Meanwhile, concerns about the cost of living continue, especially for vulnerable households. Because of this, understanding how CPI behaves is important for making balanced and effective policy decisions. What is the Consumer Price Index (CPI)? The Consumer Price Index (CPI) is a statistical tool that shows how the prices of everyday goods and services change over time. It tracks what consumers pay for a fixed basket of items used in daily life, so it helps measure the cost of living. Another measure is the Wholesale Price Index (WPI), which tracks changes in the prices of goods at the wholesale or producer level, before they reach consumers. In India, retail inflation, which is measured using the CPI, was 1.33% in December 2025. Difference between Consumer Price Index and Wholesale Price Index Aspect Consumer Price Index (CPI) Wholesale Price Index (WPI) Meaning Measures average price changes at the retail / consumer level Measures average price changes at the wholesale / producer level Inflation Type Retail or cost-of-living inflation Wholesale or producer inflation Compiled by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) Office of Economic Adviser (OEA), Ministry of Commerce & Industry Base Year 2012 = 100 (revision underway to 2024) 2011–12 = 100 Use by RBI Used for inflation targeting Not used for inflation targeting Key Issues Associated with India’s Consumer Price Index Measures Needed to Strengthen India’s Consumer Price Index Conclusion The Consumer Price Index (CPI) is India’s main measure of retail inflation. However, using 2012 as the base year for a long time made it harder for the index to reflect changing consumption habits, rising importance of services, and increasing urban living costs. Now, the base year is being revised to 2024, using data from the latest Household Consumption Expenditure Survey. This update will make the CPI more accurate by improving how items are represented, how much weight they are given, and what goods and services are included. With more detailed regional data and better use of core inflation indicators, this change will also help monetary policy work more effectively. Overall, updating the CPI regularly will allow it to better reflect real changes in the cost of living in India’s fast-changing economy.
India–AI Impact Summit 2026
Context Introduction India is at an important turning point in its development, and Artificial Intelligence (AI) is becoming a major driving force. For the country, AI is not just a technology but a strategic national tool that helps make technology more accessible, inclusive, and equitable for everyone. This rapid technological progress is creating new opportunities in almost every field. At the same time, India’s presence in global technology and governance discussions is growing, showing its increasing role in shaping international policies on emerging technologies. As part of this expanding global role, the India–AI Impact Summit 2026 will be held in New Delhi from 16 to 20 February. It will be the first global AI summit to take place in the Global South. The summit is designed as an impact-focused global platform that aims to turn AI into real, measurable benefits for economies. It aligns with India’s national vision of “Welfare for All, Happiness of All” and the global idea of “AI for Humanity.” The event will bring together global leaders, policymakers, innovators, and experts to showcase AI applications and discuss future directions for governance, innovation, and sustainable development. Core Principles: The Three Sutras Articulating the AI Impact The India–AI Impact Summit 2026 is guided by three foundational pillars, referred to as Sutras, which articulate the core principles guiding global cooperation on AI. Thematic Areas: The Seven Chakras of the India–AI Impact Summit 2026 The India-AI Impact Summit 2026 has attracted significant high-level engagement, with 15–20 Heads of Government, over 50 international ministers, and more than 40 global and Indian CEOs expected to participate. Chakra Focus Areas Human Capital Advancing equitable skilling and inclusive workforce transitions for an AI-enabled future of work. Inclusion for Social Empowerment Advancing AI systems that are inclusive by design, empowering diverse communities and ensuring equitable representation. Safe and Trusted AI Building globally trusted AI systems anchored in transparency, accountability, and shared safeguards for innovation. Science Harnessing AI to accelerate frontier science, foster scientific collaboration, and translate breakthroughs into shared global progress. Resilience, Innovation, and Efficiency Driving sustainable, resource-efficient AI systems that strengthen climate resilience and sustainability. Democratizing AI Resources Promoting equitable access to foundational AI resources for inclusive innovation and sustainable development worldwide. AI for Economic Development & Social Good Leveraging AI to enhance productivity, innovation, and inclusive development across economies and societies. Through these Chakras, India aims to shape global AI norms while addressing local challenges. The outcomes of the Summit will guide policy makers, investors, and industry leaders in the years ahead. Human Capital: India’s Talent Pool Anchoring Global AI Cooperation ndia’s rapid adoption of AI is opening new pathways for innovation and inclusive growth across sectors. As technology evolves, India is advancing workforce readiness for an AI-driven economy while ensuring broad participation across regions and socio-economic groups. The Human Capital thematic working group focuses on strengthening these efforts by shaping an equitable AI skilling ecosystem that enables smooth workforce transitions and equips citizens with capabilities for emerging roles. Inclusion for Social Empowerment: India’s Approach to Inclusive AI AI offers India a powerful pathway to expand social inclusion by improving access to services and participation for communities across languages, regions, and abilities. India’s digital public infrastructure positions it well to translate AI innovations into tangible social outcomes. The Inclusion for Social Empowerment thematic working group focuses on advancing inclusive-by-design AI solutions that reflect India’s diversity, strengthen institutional readiness, and ensure AI systems remain safe, relevant, and usable, with clear benefits for underserved and vulnerable communities. Initiatives Enabling Social Empowerment through AI: Safe and Trusted AI: Enabling Responsible AI Aligned with National Priorities As AI systems grow in scale and impact, ensuring reliability, transparency, and accountability becomes central to sustaining public confidence and responsible innovation. India’s regulatory frameworks position it to contribute meaningfully to the global AI safety efforts. The Safe and Trusted AI thematic working group focuses on strengthening governance capacity and enabling shared learning across countries. India’s Efforts for Developing Safe and Accountable AI: Resilience, Innovation and Efficiency: Strengthening Resilience through Indigenous AI Innovation India’s approach to AI places strong emphasis on efficiency and sustainability, aligning technological progress with environmental responsibility and inclusive access. The Resilience, Innovation and Efficiency thematic working group builds on India’s strengths to promote efficiency as a core design principle, enabling adaptable and climate-conscious AI systems that expand access, narrow global disparities, and support a resilient, inclusive, and sustainable AI ecosystem. Measurable Outcomes in Efficient AI Development: Democratising AI Resources: Developing Shared AI Resources Development of AI systems depends on access to compute, data, and infrastructure, resources that remain unevenly distributed across countries and institutions. Open and interoperable infrastructure, combined with multilateral cooperation, can support contextualised AI development aligned with national priorities. The Democratising AI Resources thematic working group focuses on advancing equitable access and strengthening global representativeness. Key Milestones in Shared AI Infrastructure: AI for Economic Growth and Social Good: Scaling Impact through AI While AI holds immense potential to accelerate economic growth and social progress, realizing this promise at scale remains a challenge. The AI for Economic Growth and Social Good Working Group focuses on scaling AI solutions that deliver measurable economic and social outcomes. Empowering AI-Driven Economic and Social Impact: Conclusion The India–AI Impact Summit 2026 strengthens India’s position as an important platform for shaping the global direction of artificial intelligence. Guided by the Seven Chakras and the Three Sutras—People, Planet, and Progress—the Summit promotes a development-focused approach to AI. It connects policy with real-world implementation and links innovation with public benefit, creating a clear and structured path for using AI responsibly. The aim is to ensure that technological progress supports inclusive growth and sustainable development. The Summit also highlights India’s role as a global partner and convenor in AI cooperation, encouraging shared standards, collaboration, and scalable solutions that benefit society. Overall, it marks a shift from discussions to real action, showing India’s commitment to responsible, inclusive, and development-oriented use of AI.
Genetically Modified (GM) Crops
A Genetically Modified crop is created when new DNA is introduced into plant cells. Plant genetic modification entails inserting a specific stretch of DNA into the plant’s genome to confer new or different characteristics. Introduction Genetic modification (GM) is a scientific technique in which a piece of DNA is deliberately introduced into the genetic material of a living organism. In plants, this process involves adding a specific segment of DNA to the plant’s genome so that it develops new or improved traits, such as resistance to certain diseases. Globally, the most commonly grown genetically modified crops are cotton, soybeans, maize, and canola, mainly engineered for herbicide tolerance and resistance to insect pests. The United States, Brazil, Argentina, India, and Canada are the leading countries cultivating GM crops, and together they account for about 90% of the total area under GM cultivation worldwide. GM Crops and their Development Genetically modified (GM) crops were first introduced in the United States in 1994 with the Flavr Savr tomato, which was developed to slow down the ripening process and delay softening and spoilage. Even before GM crops entered agriculture, genetic modification was already being widely used in the medical field to produce products such as insulin, vaccines, and other pharmaceutical drugs on a large scale. Methods of producing GM Crops To genetically modify a crop, a specific gene that provides a desired trait—such as Cry or Cyt genes or any other useful gene—is inserted into the plant’s DNA. This process is mainly carried out using two methods: one involves recombinant DNA technology, where Agrobacterium tumefaciens is used as a natural carrier to transfer the gene into the plant, and the other is a direct method, in which the gene is introduced straight into the plant cells using physical or chemical techniques. Direct approach Agrobacterium tumefaciens–mediated gene transfer Advantages of Genetically Modified Crops Better than conventional breeding Pest resistance Virus resistance Drought-resistant plants Herbicide tolerance Sustainable agricultural practices Enhanced nutritional value Disadvantages of Genetically Modified Crops Applications of GM Crops GM Crops in India Regulatory Framework for GM Crops in India Statutory Bodies Involved Status of GM Crops in India
Revised PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)
Introduction Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centers (DICs) and banks. The Government subsidy under the scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts. However, in case of Delhi where no DIC is in existence the scheme is implemented by State office KVIC & KVIB in entire Delhi. KVIC will coordinate with State KVIBs/State DICs and monitor performance in rural and urban areas. Objectives of PMEGP Quantum and Nature of Financial Assistance i) For setting up of new micro enterprise (units) Category of Beneficiary Beneficiary’s Contribution (of project cost) Subsidy – Urban Area Subsidy – Rural Area General Category 10% 15% 25% Special Category (SC / ST / OBC / Minorities / Women / Ex-servicemen / Physically Handicapped / NER / Hill & Border Areas, etc.) 5% 25% 35% (ii) 2 nd Loan for upgradation of existing PMEGP/REGP/MUDRA units Category of Beneficiary under PMEGP Beneficiary’s Contribution (of Project Cost) Rate of Subsidy (of Project Cost) All Categories 10% 15% (20% for NER and Hill States) Eligibility Conditions of Beneficiaries For PMEGP new enterprises/units Other Eligibility Conditions of PMEGP (New units) (i) Projects without Capital Expenditure are not eligible for Financing under the scheme . (ii) Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental work shed/workshop to be included in the project cost calculated for a maximum period of 3 years only. (iii) PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities prohibited by Local Government/Authority keeping in view environment or socio-economic factors and activities indicated in the negative list of the guidelines. (Para 30 of the guidelines). (iv) Trading activities: For upgradation of existing PMEGP/REGP/MUDRA units Implementing Agencies The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), Mumbai, a statutory body created by the Khadi and Village Industries Commission Act, 1956, which will be the single nodal agency at the national level. At the State level, the scheme will be implemented through State Directorates of KVIC, State Khadi and Village Industries Boards (KVIBs) and District Industries Centers and COIR Board for coir related activities others agencies like National Scheduled Tribes Finance and Development Corporation (NSTFDC), National Backward Classes Finance and Development Corporation (NBFDC), Indian Institute of Entrepreneurship, Guwahati, National Institute of Entrepreneurship and small Business Development, National Institute for Micro small and Medium Enterprises, Institute of Entrepreneurship development, Odisha, TR&TCs, O/o DCMSME and MSME DIs etc. Can also be enrolled as IAs, as and when necessary. All the IAs including the AIs that may be enrolled in future will be allowed to receive and process applications in all rears irrespective of the rural or urban category. KVIC will coordinate with state KVIBs/ State DICs other IAs and monitor performance in rural and urban areas. They IAs will also involve National Small Industries Corporation (NSIC), Udyami Mitras empanelled under Rajiv Gandhi Udami Mitra Yojna, RSTEIs/RUDSETIs, Panchayati Raj Institutions, NGOs of repute and other relevant agencies in identification of beneficiaries under PMEGP. Coir Board will be involved in identifying Coir units for their setting up under PMEGP in both rural as well as urban areas, their hand holding and monitoring. Other Agencies Financial Institutions Identification of beneficiaries The identification of beneficiaries will be done at the District level by implementing agencies and Banks. The Banks should be involved right from the beginning to ensure that bunching of applications is avoided. The applicants who have already under gone training of at least 10 days (for off line mode) / 60 hours (for online mode) under EDP or Skill Development Programme (ESDP) or vocational training need not undergo EDP training again. Priority will be given to persons affected bu natural calamities/disasters in the areas which are declared as affected by ‘Disaster’ as defined under Section 2(d) of the Disaster management Act 2005 by the Ministry of Home affairs. Exaggeration in the cost of the project with a view only to availing higher amount of subsidy should not be allowed. KVIC in consultations with Bankers Association had devised scoring model (Score card) which is being used by IAs for appraisal of PMEGP proposals and subsequent forwarding of applications/proposals to the Banks. The scoring model is displayed on the website of KVIC and Ministry. Bank Finance Banks sanction 90% of the total project cost for General Category beneficiaries/institutions and 95% for Special Category beneficiaries/institutions, and disburse the full sanctioned amount for setting up the project. Bank finance is provided as: The maximum project cost under PMEGP is ₹50 lakh, which includes both capital expenditure and working capital. The working capital limit is: If the capital expenditure itself reaches the maximum project cost ceiling, banks may sanction additional funds beyond ₹50 lakh (manufacturing) and ₹20 lakh (service sector); however, no subsidy is available on this additional amount. If, after three years from the start of production, the actual capital and working capital expenditure is less than the sanctioned amount, the excess margin money subsidy corresponding to the shortfall must be refunded to KVIC. Rate
Unlocking the Potential of Divyangjans in India
Context As the International Day of Persons with Disabilities (PwDs) (3rd December 2025) reminds us of the need for an inclusive society, India is making strong progress toward inclusivity for PwDs, driven by major legal and policy reforms, government initiatives and landmark events like Purple Fest 2025. What are the Key Legal Framework and Government Initiatives for Disability Rights in India? Legal Framework for Empowering Divyangjans Rights of Persons with Disabilities Act, 2016 (RPwD Act) National Trust Act, 1999 Rehabilitation Council of India (RCI) Act, 1992 Scheme for Implementation of RPwD Act, 2016 (SIPDA) Government Initiatives Sugamya Bharat Abhiyan (Accessible India Campaign) Assistance to Disabled Persons (ADIP) Scheme Unique ID for Persons with Disabilities (UDID) Deendayal Divyangjan Rehabilitation Scheme (DDRS) PRASHAST App National Divyangjan Finance and Development Corporation (NDFDC) PM-DAKSH–DEPwD Portal Divya Kala Mela Artificial Limbs Manufacturing Corporation of India (ALIMCO) Promotion of Indian Sign Language (ISL) What are the Challenges Confronting Persons with Disabilities (PwD) in India? Accessibility Challenges Gaps in Inclusive Education Employment and Economic Exclusion High Healthcare Costs and Limited Support What Further Steps are Necessary to Advance Inclusivity and Accessibility for PwDs in India? Bridge the Governance Gap Universalise Accessibility Economic Empowerment through Skills Promote Innovation in Assistive Technology Conclusion India has put in place a strong legal and policy framework for the rights of persons with disabilities, led by the Rights of Persons with Disabilities Act, 2016 and the Accessible India Campaign. However, the real challenge lies in effective implementation on the ground. Strict enforcement of disability laws, timely compliance by institutions, and strong accountability mechanisms are essential to turn rights into reality. At the same time, persons with disabilities need greater access to skill development, employment opportunities, and entrepreneurship so that they can participate meaningfully in economic growth. Investing in accessible and affordable technologies, including digital and assistive innovations, will further remove everyday barriers. Together, these steps are crucial to ensure the full inclusion of persons with disabilities in India’s vision of a Viksit Bharat.
Reshaping the Future of Healthcare in India
Introduction
Rare Earth Corridors
Context Introduction India is making a strong push to become self-reliant in critical materials by building a domestic ecosystem for Rare Earth Permanent Magnets (REPMs). These high-performance magnets are crucial for electric vehicles, wind turbines, electronics, aerospace, and defence technologies. To achieve this, the government approved a ₹7,280 crore scheme in November 2025 to set up 6,000 MTPA of integrated REPM manufacturing capacity, covering the entire value chain—from rare-earth oxides to finished magnets. Further strengthening this effort, the Union Budget 2026–27 announced the creation of Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. These corridors aim to support mining, processing, research, and manufacturing activities, creating a complete and coordinated ecosystem. Together, these initiatives align with India’s goals of Atmanirbhar Bharat, Net Zero emissions by 2070, and Viksit Bharat @2047. They also position India as an emerging and reliable player in global advanced materials and clean-technology value chains. Strategic Importance and Resource Potential of Rare Earth Permanent Magnets in India Rare Earth Permanent Magnets (REPMs) are some of the most powerful permanent magnets available. They are small in size but extremely strong and stable, which makes them essential for modern technologies. REPMs are widely used in electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace systems, defence equipment, and precision sensors. As India expands manufacturing in areas such as clean energy, advanced mobility, and strategic industries, having a reliable domestic supply of REPMs becomes increasingly important. Domestic production helps reduce dependence on imports and improves India’s position in global advanced-materials value chains, making the country more competitive in high-tech manufacturing. India’s Resource Base India has a strong natural advantage when it comes to rare-earth minerals, which provides a solid base for downstream industries such as Rare Earth Permanent Magnet (REPM) manufacturing. India holds around 13.15 million tonnes of monazite, which contains an estimated 7.23 million tonnes of rare-earth oxides (REO). These deposits are spread across several states, including Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand. Most of these resources are found in coastal beach sands, teri or red sands, and inland alluvial deposits. In addition to this, hard-rock rare-earth resources have been identified in Gujarat and Rajasthan, amounting to about 1.29 million tonnes of in-situ REO. Further strengthening the resource base, the Geological Survey of India (GSI) has expanded known reserves by identifying 482.6 million tonnes of rare-earth ore resources through 34 exploration projects. Together, these figures highlight that India has a robust raw-material foundation to support the development of a fully integrated REPM manufacturing ecosystem. However, despite this strong resource base, India’s domestic production of permanent magnets is still at an early stage. Most of the country’s demand is currently met through imports, mainly from China, which accounted for nearly 60–80% of imports by value and 85–90% by quantity between 2022 and 2025. With demand for REPMs expected to double by 2030, driven by the rapid growth of electric vehicles, renewable energy, electronics, and defence sectors, it is crucial for India to scale up domestic manufacturing and investment in this area. Doing so will reduce import dependence, strengthen supply security, and ensure long-term self-reliance in critical materials. Budget Push for Rare Earth Manufacturing and Corridors The Union Budget 2026–27 has given strong focus to building self-reliance in critical materials. It strengthens the recently approved Rare Earth Permanent Magnet (REPM) Manufacturing Scheme by introducing corridor-based initiatives. Together, these steps create a complete and coordinated approach to expand domestic manufacturing capacity, reduce dependence on imports, and position India as an important player in the global advanced-materials ecosystem. REPM Manufacturing Scheme To strengthen India’s self-reliance in critical materials, the government on 26TH November, 2025, approved a major scheme for Rare Earth Permanent Magnets (REPMs). This initiative provides financial support and incentives to build a fully integrated domestic manufacturing ecosystem. Union Budget 2026–27: Rare Earth Corridors To support the REPM manufacturing scheme, the Union Budget 2026–27 announced the creation of Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. These corridors will bring together mining, processing, research, and manufacturing activities in regions that already have rich mineral resources. The initiative is expected to boost local economies, strengthen research and development capabilities, and help India become more closely connected to global value chains in advanced materials. These proposed corridors build directly on the existing operations of IREL (India) Limited in Odisha and Kerala. Formerly known as Indian Rare Earths Limited, IREL has been operating under the Department of Atomic Energy since 1963 and plays a key role in India’s rare-earth ecosystem. With a processing capacity of 10 lakh tonnes per year, it produces important strategic minerals such as ilmenite, rutile, zircon, sillimanite, and garnet. Crucially, IREL already operates a Rare Earth Extraction Plant in Odisha and a Rare Earth Refining Unit in Aluva, Kerala, which align closely with the objectives of the new corridor initiative. By linking IREL’s established facilities with the Dedicated Rare Earth Corridors, the government aims to scale up domestic rare-earth production, support advanced manufacturing, and speed up India’s move towards self-reliance and clean-energy–driven growth. Rare Earth Development Aligned with National Goals India’s recent policy steps show that rare earth development is being closely linked with larger national goals. The focus goes beyond industrial growth to include clean energy, defence preparedness, and long-term resource security. Strengthening Global Mineral Partnerships India’s approach to rare earths and critical minerals goes beyond domestic reforms and is strongly supported by international cooperation to build secure and resilient supply chains. Overall, these international partnerships complement India’s domestic efforts and help ensure long-term resource security for its clean energy, industrial, and strategic sectors. Conclusion India’s rare earth strategy is clearly moving toward greater self-reliance by combining its strong natural resource base with focused policy and financial support. The ₹7,280 crore REPM Manufacturing Scheme, along with the Dedicated Rare Earth Corridors announced in the Union Budget 2026–27, together create a complete ecosystem covering mining, processing, research, and manufacturing. These steps will help reduce import dependence, strengthen
10 Years of Startup India
Context Pivotal Role in Economic Transformation National Startup Day on 16 January 2026 marks ten years of the Startup India Initiative. What began in 2016 as a policy effort to energise entrepreneurship has grown into one of the world’s largest and most diverse startup ecosystems. Anchored by the Startup India mission, this movement has fundamentally reshaped India’s entrepreneurial and innovation landscape. It aligns closely with India’s vision of Viksit Bharat 2047, blending economic modernisation with inclusive and region-balanced growth. Over the past decade, startups have become a key driver of India’s economic transformation, contributing to innovation, employment generation, and inclusive development. By December 2025, India had over two lakh startups, placing it among the leading startup ecosystems globally. Major hubs such as Bengaluru, Hyderabad, Mumbai, and Delhi-NCR continue to lead this growth. At the same time, nearly half of all startups now come from Tier-II and Tier-III cities, showing that entrepreneurship is spreading beyond metropolitan centres and becoming more accessible across the country. Startups are increasingly bridging India’s rural- urban divide by deploying solutions across agri-tech, telemedicine, microfinance, tourism, and ed-tech, directly addressing developmental gaps and supporting rural livelihoods. Within this landscape, women-led startups are emerging as a key driver of inclusive and regionally balanced growth, with more than 45% of recognised startups having at least one-woman Director/Partner as of December 2025. This reflects the emergence of innovation not only as an economic engine but also as a driver of social equity and balanced regional development. A Decade of Building India’s Innovation Backbone The Startup India Initiative, led by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, has become the backbone of India’s innovation and entrepreneurship ecosystem. Over the last ten years, it has grown from a policy-driven programme into a comprehensive support platform that helps startups at every stage—from idea generation and early funding to mentoring and large-scale expansion. This transformation is clearly visible in the growth of India’s high-value startups. In 2014, India had only four unicorns, but today there are over 120 such companies, with a combined valuation of more than $350 billion. This highlights not only the scale of India’s startup ecosystem but also its rising importance on the global stage. Startups are effectively tapping into India’s young demographic advantage, creating jobs across technology, services, and manufacturing. They are also generating indirect employment through gig work, logistics, and supply chains. In addition, partnerships between startups, large Indian firms, and multinational companies are enabling technology transfer, faster scaling, and access to global markets. Innovation-driven startups are also reshaping traditional sectors. Agri-tech platforms like Hesa are helping farmers reach markets more easily by connecting rural producers with urban demand. At the same time, clean mobility startups such as Zypp are offering electric vehicle–based last-mile delivery solutions. These innovations create wider benefits across finance, supply chains, sustainability, and digital infrastructure, showing how startups contribute to overall economic growth. To further strengthen innovation-led entrepreneurship, DPIIT, through the Startup India initiative, has launched several flagship schemes and digital platforms that provide funding support, mentorship, and assistance for scaling startups across the country. Schemes Strengthening India’s Startup Ecosystem In addition to Startup India, a range of sector-specific and ministry-led initiatives have reinforced India’s startup ecosystem by addressing technology development, rural entrepreneurship, academic innovation, and regional inclusion. These schemes ensure that startup support is broad-based, decentralised, and aligned with national development priorities. Atal Innovation Mission (AIM) Launched in 2016 by NITI Aayog, the Atal Innovation Mission (AIM) is the Government of India’s flagship programme to build a strong culture of innovation and entrepreneurship across the country. It works across schools, colleges, research institutions, startups, and industry. With a total allocation of ₹2,750 crore up to March 2028, AIM provides a unified framework to design innovation programmes, encourage partnerships, and strengthen India’s startup ecosystem. AIM 1.0: Building the Foundation Under AIM 1.0, the focus was on creating innovation infrastructure and nurturing early talent by working closely with central and state governments, incubators, and global partners. Atal Tinkering Labs (ATLs) The Atal Tinkering Lab programme aims to transform India’s education system by shifting students away from rote learning toward creative thinking, problem-solving, and hands-on innovation.With over 10,000 ATLs across 733 districts, millions of students are being exposed to future-ready skills such as artificial intelligence, robotics, IoT, and 3D printing. So far, the programme has reached more than 1.1 crore students and supported over 16 lakh student innovation projects. Community Innovator Fellowship (CIF) Implemented in partnership with UNDP India, the Community Innovator Fellowship supports grassroots innovators working on local challenges.Through a one-year intensive fellowship, selected fellows are placed at Atal Community Innovation Centres, where they receive training in entrepreneurship, life skills, and SDG awareness, along with hands-on support to develop and refine their own innovation ideas. Youth Co:Lab Programme The Youth Co:Lab programme focuses on empowering young people across the Asia-Pacific region to contribute to the Sustainable Development Goals (SDGs) through leadership, social innovation, and entrepreneurship.It conducts national dialogues through workshops, panels, and webinars, while also supporting youth-led startups through incubation and regional platforms.The Youth Co:Lab National Innovation Challenge 2024–25, conducted with the AssisTech Foundation, specifically encouraged young entrepreneurs, including innovators with disabilities, to create solutions that improve access, inclusion, and well-being for persons with disabilities. Transition to AIM 2.0 While AIM 1.0 focused on building innovation infrastructure, AIM 2.0 (launched in 2024) shifts attention to addressing ecosystem gaps and scaling successful models. It emphasises collaboration among governments, industry, academia, and communities, and strengthens the early-stage innovation pipeline, especially by expanding the ATL ecosystem in schools. Key Programmes under AIM 2.0 GENESIS (Gen-Next Support for Innovative Startups) The GENESIS initiative, a National Deep-tech Startup Platform by Ministry of Electronics and Information Technology (MeitY), was launched in July 2022, with an aim to scale up about 1600 technology startups through implementing agencies in Tier-II and Tier-III cities across India, providing significant funding and support for deep-tech innovation. With a budgetary outlay of ₹490 crore spread over five years, the scheme is positioned to accelerate and
