Published Aug 30, 2026 | 7:00 AM ⚊ Updated Aug 30, 2026 | 7:00 AM
Image used for representational purpose. (AI generated)
Synopsis: Promotion of start-ups among Gen Z must be the key focus at the ground level to achieve Viksit Bharat. Here are a few ideas to help achieve this.
India is ranked third globally in the start-up universe.
As of December 2025, we have more than two lakh Department for Promotion of Industry and Internal Trade (DPIIT) recognised start-ups, and 50 per cent of these start-ups originate from Tier II and Tier III cities.
Start-ups have a key role to make Viksit Bharat a reality as they provide employment opportunities, thereby promoting inclusive growth, and help achieve the goal of an Atmanirbhar Bharat.
It is heartening to know that at least 45 per cent of recognised start-ups have women directors/partners. This is an encouraging development and marks a welcome departure from what we see in certain larger companies, where regulations are sometimes needed to ensure the rise of women directors.
Start-ups, we must understand, have considerable freedom in choosing their founding teams and leadership structures. Thus, the rising number of women in influential positions in their organisations reflects a voluntary shift in mindset rather than compliance with a rule. Women are increasingly participating not only as employees but also as decision-makers, founders, and partners who shape the direction of businesses. Diverse leadership teams bring different perspectives, improve problem-solving, and help create products and services that better reflect the needs of society.
The Government of India’s efforts to improve ease of doing business, such as online company incorporation, the SPICe+ integrated registration form, paperless digital compliance, and reduced compliance requirements, have simplified business registration, reduced paperwork and costs, accelerated approvals, and allowed start-ups to focus more on innovation and growth. This has strengthened India’s startup ecosystem.
Ease of doing business also requires an efficient exit mechanism. Through the Insolvency and Bankruptcy Code (IBC), 2016, India has established a time-bound and transparent process for resolving insolvency and closing financially unviable businesses. This is particularly important for start-ups, where failure is often a part of the innovation journey.
By allowing entrepreneurs to exit unsuccessful ventures quickly, settle liabilities efficiently, and redirect resources towards new opportunities, the IBC encourages risk-taking, promotes innovation, and strengthens the overall start-up ecosystem. The Start-up India initiative, started by the Government of India, has resulted in the expansion of India’s high-value start-up ecosystem, from just four privately held companies valued at 1 billion dollars in 2014 to 120 such firms today with their combined valuation exceeding 350 billion dollars. These numbers can go up in leaps and bounds if we catch Gen Z founders early. The idea must be to make India the top start-up ecosystem in the world.
First, we need to look beyond grades with a greater focus on identifying students who have problem-solving skills. Students at the plus-two and college levels must be encouraged to identify local problems and come up with solutions by providing micro-internships. These micro-internships could be institutionalised through educational institutions collaborating with industries. Hosting hackathons can be made mandatory in all educational institutions to promote this spirit of innovation.
Second, almost all States in India have dedicated start-up policies and institutional cells. Educational institutions should reach out to these cells to arrange talks and discussions on how to initiate start-ups, avail start-up schemes and funding opportunities.
The Government of India has launched various schemes for the promotion of start-ups, such as Fund of Funds for start-ups, Credit Guarantee Scheme for start-ups, Start-up India Seed Fund Scheme, Start-up India Hub, National Membership Portal, Start-up India Investor Connect Portal, etc.
Further, there are various schemes aimed at strengthening India’s start-up ecosystem like the Atal Innovation Mission (AIM), GENESIS (Gen-Next Support for Innovative Start-ups), MeitY Startup Hub (MSH), Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 Scheme, NIDHI (National Initiative for Developing and Harnessing Innovations), ASPIRE (A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship), Startup Village Entrepreneurship Program (SVEP), and Prime Minister’s Employment Generation Programme (PMEGP) etc. Collaboration with micro-influencers for promotion of these schemes and programmes among the youth is key. Further, the recently launched Prime Minister Internship Scheme (PMIS) for youth can be a significant source of channelling the energy of India’s youth into productive avenues.
Third, the States’ Start-up Ranking is a yearly capacity-building exercise created and released by DPIIT that evaluates the efforts of all of India’s states and Union Territories to build an ecosystem conducive to start-up growth. We may need to explore district rankings too, with classification of districts under various categories, so as to reach the ground level.
The district administration could easily work on solving problems through tie-ups with educational institutions. An example is a Kerala deep-tech startup named Genrobotics that solved the problem of hazardous underground manhole and sewer cleaning in Thiruvananthapuram district, which was highlighted by the media recently.
Fourth, there is a significant number of micro-founders among the youth who develop products with the help of AI in a very short time. It is high time we identify and handhold them, providing them with support in marketing, community building and strategic public networking. The local self-governments, with coordinated efforts from district administration, can work wonders.
Last but not least, a single website and application portal can be developed in each of the States listing all the start-up schemes of both the Central and State Governments, with 24/7 assistance for queries and a quick approval process that can help Gen Z quickly establish their business.
Start-ups play a significant role for young citizens in addressing the NEET (Not in Education, Employment, or Training) problem by creating new employment opportunities and encouraging entrepreneurship among young people. They generate jobs across diverse sectors, provide opportunities for skill development, and enable youth to become job creators rather than job seekers.
Government initiatives such as Start-up India, easier access to finance, incubation support, and simplified business regulations encourage young entrepreneurs to establish innovative ventures, thereby reducing unemployment and increasing productive participation in the economy to achieve the target of Viksit Bharat 2047. The challenge all policymakers must now focus on is to help identify them early, connect them to the right ecosystem and give them the support they need to turn their ideas into budding enterprises.
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(Deepak Kumar and Surjith Karthikeyan serve as Directors, Government of India, at the Ministry of Corporate Affairs and the Ministry of Finance, respectively. Views are personal. Edited by R Rajesh Kumar.)
