As India marks National Startup Day, its entrepreneurial journey is at a defining inflection point. What began as a phase of experimentation has evolved into a powerful engine of economic growth, job creation, and innovation. Aligned with the Viksit Bharat 2047 vision, the ecosystem is shifting its focus from chasing valuations to building lasting value that supports nation-building.
Across sectors such as climate, energy, manufacturing, agri-tech, travel, logistics and financial services, startups are increasingly solving real-world problems at scale. Founders and investors are prioritising strong fundamentals, sustainable business models and technology-led efficiency to drive long-term impact. This evolution is further accelerated by the rise of Tier-2 and Tier-3 cities, which are emerging as demand centres fueled by deeper digital adoption, affordability-led innovation and Bharat-first product design.
Also read: Leaders Share Views on the Resilient Indian Startup Ecosystem on National Startup Day 2025
Commenting on the National Startup Day, Soham Chokshi, Co-founder and CEO, Shipsy said, “India should focus on amplifying human potential with AI and transition from being an outsourcing hub to a center of AI innovation.We need to move from solving tickets to driving outcomes, from systems of record to systems of action”
Reflecting this shift Sandiip Bhammer, Founder and Managing Partner, Green Frontier Capital said, “Startups will be foundational to the Viksit Bharat 2047 vision if they move beyond valuation-led growth to value-led nation building. The next phase of India’s startup journey will be defined by companies that solve real problems at scale across climate, energy, manufacturing, agri-tech, and financial inclusion while embedding sustainability and efficiency into their core business models. Tier 2 and Tier 3 cities will emerge as India’s next startup frontier, not just as talent pools but as demand centres. Rising digital penetration, affordability-driven innovation, and Bharat-first product design are enabling startups to build locally relevant solutions with national impact. Those that align technology, capital discipline, and long-term societal outcomes will ultimately shape India’s economic and employment growth over the next two decades.”
Echoing this outlook, Rikant Pittie, CEO & Co-Founder of EaseMyTrip and Chairman, CII Delhi, highlights the resilience and creativity demonstrated by Indian startups in recent years stating that, “The next phase is about translating that innovation into scale and sustainable impact. Founders must prioritise strong fundamentals, build capable teams, and focus on products and services that truly make a difference. When startups combine ambition with disciplined execution, they not only succeed but also help to position India as a global hub for innovation and entrepreneurship.”
As the ecosystem matures, the emphasis is also shifting towards building sustainable and responsible enterprises. Alok Anibha, Founder, Girikon.AI, noted: “Startup Day is a reminder that building a sustainable company goes beyond innovation it requires resilience, long-term thinking, and the ability to adapt to rapidly changing markets. As Indian startups mature, the focus must shift from just launching ideas to building scalable, responsible businesses that create real value for customers and contribute meaningfully to the economy.”
This evolution is especially visible in India’s AI ecosystem. Sandeep Khuperkar, Founder and CEO, Data Science Wizards, observed: “National Startup Day reflects how India’s startup ecosystem is evolving from building fast-moving products to creating foundational systems that enterprises can rely on. In AI, that shift is especially clear. The challenge is no longer experimentation, but operating AI safely, continuously, and at scale within real-world enterprise environments. The next 12–16 months will be critical, as organizations move beyond building AI to being able to operate and govern it securely in production. This is also when enterprises return to first principles enterprise architecture, solution architecture, and system design to embed AI into the core fabric of the enterprise. As AI moves into regulated workflows and core decision-making, governance must be embedded as code within the system itself. Startups that focus on operability, resilience, and governance-by-design will play a critical role in shaping trusted AI infrastructure for the future.”
Yuvraj Bhardwaj – Co-Founder and CEO of Petonic AI, an India-based AI-solutions startup catering to the world,said, “Over the next five years, India’s startup ecosystem is set to enter a more mature and resilient phase. Success will no longer be how quickly capital is raised, but how to build sustainably, and deliver real value. India is home to over 120 unicorns right now, and more than 44,000 DPIIT-registered startups were added in a single year. Technology, especially AI, is becoming a defining force and enabling startups to innovate faster, and deliver highly personalized solutions. Indian founders are uniquely positioned in this – building for complex, cost-sensitive, local markets while thinking globally. Over 50% of Indian startups are projected to emerge from Tier-2 and Tier-3 cities by 2035. For this, investments in skill development, connectivity, and localized support systems will be crucial.”
The shift from valuation-led growth to value-led nation-building is increasingly visible as startups mature and focus on building core economic infrastructure. This transition is also reshaping India’s AI ecosystem, with startups creating globally competitive products rooted in Indian realities rather than remaining backend service providers.
“This development fundamentally changes the opportunity landscape for AI-focused startups in India. It moves us from being service providers to becoming global product creators. With strong backing for ethical AI, indigenous data, and regional languages, startups now have a clear mandate to build deep-tech solutions that are locally grounded yet globally scalable with the assurance that national policy is aligned with innovation, trust, and long-term sustainability,” said Sunil Kharbanda, Co-founder and COO at Trezix.
“The most defining startup strategy for Viksit Bharat will be deep-tech enablement at the grassroots level. India’s next phase of growth will not be driven only by metros, but by making Tier 2 and Tier 3 regions digitally, technologically, and institutionally intelligent. Startups that focus on solving root-level systemic problems, such as access to credit, healthcare, and education, will create the maximum long-term impact. When institutions and public systems are powered by AI for decision-making and blockchain for transparency and auditability, many long-standing challenges can be addressed at their source rather than through surface-level fixes. The future belongs to startups that combine technology with trust, build India-first solutions, and design systems that are scalable, transparent, and inclusive. This approach not only accelerates economic growth but also strengthens institutional integrity and citizen confidence, both critical pillars of a developed nation”, commented Ajay Setia, CEO and Founder, Invincible Ocean.
Darshil Shah, Founder and Director, TreadBinary said, “On National Startup Day 2026, India’s startup ecosystem continues to emerge as a central pillar of economic growth and self-reliance. Startups today are not only driving innovation but also creating employment, strengthening domestic manufacturing, and building technology-led solutions across sectors such as AI, deep tech, and sustainability. As the nation steadily moves towards the vision of a Viksit Bharat by 2047, making India the startup capital of the world will require innovation to be backed by supportive policy frameworks, access to capital, and stronger collaboration between startups, industry, and government. When aligned with national priorities, India’s startup movement has the potential to deliver long-term, inclusive growth and enhance global competitiveness.”
“The real opportunity for India’s AI startups lies in building trust-first intelligence, ethical, transparent, and privacy-by-design systems rooted in India’s languages, data realities and social context. This marks a shift from imitation to leadership, where indigenous and inclusive AI is expected to meet global standards. Aligned with the vision of Viksit Bharat, such innovation positions startups not just as technology builders, but as architects of a digitally empowered, self-reliant India supported by strong policy intent and government backing”, said Sandipan Mitra, CEO & Co-founder, HungerBox.
Kulpreet Sahni, Founder & CEO, Chiltier commented, “The celebration of National Startup Day represents the ongoing growth of the start-up ecosystem of India, which is moving quickly beyond the digital services space into areas such as manufacturing, deep-tech and physical product innovation. Establishing these types of ventures requires longer development cycles, larger amounts of financial capital, and sustained expertise in engineering and execution. The creation of hardware- and manufacturing-based start-ups presents several distinctive challenges. These include high levels of research intensity, reliance on supply chains, and the need to meet quality standards that cannot be speeded up by high growth rates alone. These facts highlight the need for patience, capability-building, and strategic planning over the long term.
As India continues to enhance its start-up ecosystem, a greater emphasis should be placed on developing engineering talent, establishing domestic manufacturing capacity, and developing strong, viable supply chains. Furthermore, by supporting start-ups that address problems related to climate and infrastructure development, sustainable economic growth will benefit, resulting in long-term economic value. Finally, National Startup Day should be viewed as an opportunity to discuss these and other challenges while also creating opportunities for aligning ecosystem activities towards the development of durable, globally competitive businesses.”
