India’s startup ecosystem is witnessing extensive structural reforms aimed at fostering innovation and inclusivity. Key developments today include NITI Aayog’s initiative to make innovation accessible in every Indian language, new incubation models, updates to semiconductor policies, and state-led seed funding initiatives. These efforts signify a concerted alignment of policy, institutions, and entrepreneurs to bolster the startup landscape, particularly in deep-tech sectors such as healthcare, clean energy, and AI-driven agriculture. The emphasis on a more disciplined funding environment signals a shift towards sustainable growth as the country embarks on the next phase of its entrepreneurial journey.
NITI Aayog has launched the Language Inclusive Program of Innovation (LIPI) aimed at making the startup ecosystem accessible beyond English. With only 10.4% of Indians fluent in English, nearly 90% of grassroots innovators have been left out of the innovation narrative. LIPI seeks to support innovators throughout their lifecycle—including ideation, mentorship, funding, and compliance—across all 22 scheduled languages. This initiative transcends mere translation, focusing on inclusion by design and facilitating connections with vernacular investors. Stakeholder feedback is being invited until January 10, 2026, to co-create this framework, ensuring language barriers do not hinder India’s innovation journey.
Further democratizing innovation, the Department of Science & Technology (DST) has established 15 Inclusive Technology Business Incubators (i-TBIs) across universities. At a review meeting at Delhi Technological University (DTU), Union Minister Dr. Jitendra Singh emphasized the impact of these incubators under the NIDHI program. DTU’s incubator alone has nurtured 15 startups, with three receiving ₹5 lakh Startup Ignition Grants to accelerate their prototyping and commercialization efforts. The initiative prioritizes inclusivity, particularly for women-led ventures, providing comprehensive support that includes mentorship and infrastructure, thereby positioning universities as vital hubs of innovation across the nation.
The Government of India is preparing to launch Design-Linked Incentive (DLI) 2.0, which will introduce a co-funding model that matches public funds with private investments to bolster semiconductor startups. This approach aims to validate the market and mitigate the risk of fund misuse, although concerns persist about smaller firms’ ability to raise initial capital. By removing the ₹15 crore cap, DLI 2.0 seeks to accommodate large-scale projects and the participation of major players. With an allocation of ₹5,000 crore, the initiative focuses on chips for consumer electronics and aims to position India as a global semiconductor hub.
In a strong endorsement of the country’s defense innovation, Defence Minister Shri Rajnath Singh stated that India aims to achieve full self-reliance in defense manufacturing within the next 15 to 20 years. Addressing the rapid advancements in defense startups, he highlighted their role in creating solutions that meet global standards. Notably, India’s position in the Global Innovation Index has improved from 76th in 2014 to 39th in 2024, reflecting significant progress in the digital economy. Singh reiterated that true progress requires a combination of wisdom and knowledge, emphasizing the need for India to emerge as a developed and prosperous nation by 2047.
In Goa, the state has greenlit seed funding for eight startups under the 2025 Startup Policy. This decision came from a meeting chaired by Chief Minister Shri Pramod Sawant, where 16 out of 27 applications were shortlisted for evaluation, ultimately leading to the approval of eight startups for funding. The Seed Capital Scheme offers one-time assistance of up to ₹10 lakh to startups with viable products, covering a wide array of sectors including IT, AI, health tech, and e-commerce. Additionally, ₹50,000 has been awarded to 10 student projects under the Campus Innovation Scheme, showcasing a burgeoning innovation ecosystem in Goa.
Chandigarh has also made strides with the notification of operational guidelines for its Startup Policy 2025, allowing startups and incubators to apply for benefits through the Start-In-Chandigarh portal. The policy aims to foster the creation of over 200 startups in five years, while also enhancing incubators through grants for technology upgrades and mentorship programs. Startups recognized by DPIIT will have access to reimbursements for national and international events, alongside annual competitions offering up to ₹2 lakh in prize money.
The recent removal of the three-year existence requirement for startups seeking support from the Research, Development and Innovation (RDI) Fund marks another significant change, as announced by Union MoS Shri Jitendra Singh. This development allows newly formed startups to access funding directly through the Department of Scientific and Industrial Research (DSIR). Singh emphasized India’s progress under Prime Minister Narendra Modi’s leadership, including the opening of nuclear and space sectors to private players, and introduced several initiatives aimed at strengthening India’s innovation ecosystem.
As the landscape evolves, the 4th edition of HDFC Tech Innovators in Mumbai has spotlighted 12 startups that are defining the future of innovation in India. Hosted by HDFC Capital and HDFC Bank, the event recognized standout innovators from various sectors, reinforcing a commitment to nurturing the entrepreneurial ecosystem. The recognition offers access to investment opportunities and mentorship for the winners, further empowering the next generation of startups.
Looking ahead, events such as the Rajasthan DigiFest-TiE Global Summit 2026 in Jaipur aim to attract over 10,000 participants, including startups and global tech leaders, aiming to channel investments exceeding ₹200 crore. Similarly, the Him MSME Fest 2026 seeks to encourage entrepreneurship in Himachal Pradesh by celebrating innovative startups and fostering a culture of self-reliance. As these initiatives unfold, they collectively underscore India’s ambition to solidify its position as a global innovation hub, driven by a commitment to inclusivity and sustainable growth.
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