Volume 2 - Issue 1, January - February 2026

Startup India, a flagship initiative of the Government of India, was launched by Prime Minister Narendra Modi on January 16, 2016, to promote entrepreneurship nationwide. The startup initiative is playing a significant role in increasing creativity, supporting women entrepreneurs, marginalised groups, and rural enterprises, while also generating employment, promoting equitable growth, making business more accessible, and raising India's competitiveness worldwide. After the US and China, India will have the third-largest startup ecosystem worldwide by 2025. In 2025, Maharashtra, Karnataka, Delhi, and Uttar Pradesh are the top-performing States/UTs in the Startup Ecosystem in India. The present study is descriptive and analytical in nature, based on secondary data. The objectives of the study are to examine the States/UTs-wise growth rate of startups recognised and employment created through the startup initiative in India, and to evaluate the status of States/UTswise funds allocated and funds utilised under the Startup India Seed Fund Scheme and Fund of Funds Scheme. To accomplish the objectives of the study, the required information and data were collected through secondary sources of information. Statistical methods such as ANOVA, Compound Annual Growth Rate, and Percentage Method have been applied for data analysis and results finding. The study found that overall, startups in India grew from 10,604 in 2019 to 34,779 in 2023 at a compound annual growth rate of 33.7 per cent, and employment grew from 1,23,071 in 2019 to 3,90,512 in 2023 at a compound annual growth rate of 32.5 per cent. Maharashtra (5,801) led in startup registrations, followed by Uttar Pradesh, Gujarat, Karnataka, and Tamil Nadu, while Delhi ranked first among UTs. Maharashtra received the highest funding under both the Seed Fund Scheme and the Fund of Funds, but utilisation efficiency was low, i.e. 37.76 per cent and 34.20 per cent. The study concludes that while India’s startup ecosystem is expanding rapidly, growth and fund utilisation remain uneven across states and UTs. The study recommended that strengthening ecosystems, improving fund efficiency, and supporting emerging states are essential for equitable startup growth across the country.

Naresh Kumar,"Evaluation of Startup Development, Employment Generation, and Funding Utilisation Under The Startup Initiative in India" International Journal of Scientific Research and Engineering Development, V2(1): Page(368-377) Jan-Feb 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.