Startup India Initiative and Its Impact on the Entrepreneurial Ecosystem: Evidence from Odisha

The Startup India initiative, launched on January 16, 2016, by the Government of India, was conceived as a comprehensive policy architecture to foster innovation, build a strong entrepreneurial ecosystem, and generate employment at scale. In less than a decade, it has transformed India into the world’s third-largest startup ecosystem, with over 140,803 DPIIT-recognized startups by June 2024 and an estimated 17.28 lakh self-reported jobs by 2024. This paper examines the impact of the Startup India initiative on the entrepreneurial ecosystem, with a specific focus on evidence from Odisha. Drawing exclusively on secondary data from the DPIIT, State Startup Ranking Reports, Startup Odisha official publications, government budget documents, PIB press releases, and peer-reviewed academic literature, the paper traces Odisha’s startup growth from 170 DPIIT-recognized startups in 2019 to 2,484 by June 2024. It documents the state’s institutional response through the Startup Odisha policy framework, the O-Hub incubation infrastructure, and the disbursement of Rs. 25.48 crore in startup incentives to 2,097 recognized startups. The paper also analyzes Odisha’s trajectory in DPIIT State Startup Rankings—rising from Leader (2019) to Top Performer (2021 and 2022) before slipping to Aspiring Leader (2026) due to reporting delays—and evaluates the effectiveness of key interventions including seed grants, incubation subsidies, and the 20% state procurement earmark for startups. The paper finds that while Odisha’s ecosystem has grown substantially, it remains significantly constrained by geographic concentration (over 60% of startups in Khordha/Bhubaneswar), limited risk capital deployment, thin incubation coverage in tribal districts, and a post-recognition support deficit. Evidence-based policy recommendations are provided to broaden and deepen the ecosystem, with specific attention to districts such as Mayurbhanj in northern Odisha.