India's Innovation Economy: From Startups to Global Leadership

• India has transformed into the world's third-largest startup ecosystem, supported by nearly 2 lakh DPIIT-recognised startups and a robust policy framework.
• Public investments like the Fund of Funds for Startups (FFS) and mission-driven institutions (SIDBI, NABARD, BIRAC) have been crucial in de-risking early-stage innovation and fostering a funding continuum.
• State governments, including Karnataka, Maharashtra, and Telangana, have actively built startup ecosystems, leading to a geographically distributed innovation landscape with over 1,100 incubators.
• Private capital has matured, with over USD 115 billion invested in Indian startups over the past decade, producing more than 100 unicorns and shifting focus towards sustainability and deeptech.
• Post-2022, the ecosystem pivoted to deeptech and IP-led innovation, supported by policies like the National Deep Tech Startup Policy, emphasizing sectors like AI, semiconductors, and spacetech for technological sovereignty.

Why It Matters: India's innovation economy has evolved significantly, driven by public and private capital, focusing on deeptech for global leadership.