Abstract: India has emerged as the world's third-largest startup ecosystem, driven by a combination of demographic dividends, digital infrastructure, and proactive government intervention. This paper provides a comprehensive analysis of India's startup promotion policies and ecosystem development from the launch of the Startup India initiative in 2016 through May 2024. It examines the policy architecture—including the Startup India initiative, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS)—and evaluates their impact on startup recognition, job creation, funding flows, and geographical diffusion. The paper also analyzes the structural characteristics of the ecosystem, including sectoral distribution, investor composition, and emerging challenges such as the funding winter of 2023-2024 and rising closures. Drawing on government data, industry reports, and academic literature, the paper concludes that while India has built a robust policy foundation for startups, sustaining momentum requires addressing regional disparities, deepening domestic capital pools, and refining implementation mechanisms.

Keywords: Startup India, entrepreneurial ecosystem, innovation policy, venture capital, unicorns.