India’s startup ecosystem, now home to more than 120 unicorns with a combined valuation exceeding US$390 billion, has attracted cumulative funding of over US$118 billion, according to a White Paper released by the Confederation of Indian Industry on unicorn policy.
The report highlights that India ranks as the world’s third-largest startup ecosystem and presents a detailed assessment of its evolving landscape, alongside a strategic policy roadmap for the next phase of growth. It identifies four priority sectors—electric vehicles, urban logistics, drones and emerging technologies, and fintech—as key drivers of future expansion.
The White Paper points to a structural shift in the ecosystem as it matures, moving away from valuation-led growth toward a model anchored in value creation and innovation. This transition reflects a stronger emphasis on sustainable unit economics, operational discipline, deeper technological capabilities, and long-term global competitiveness.
Chandrajit Banerjee, Director General of CII, said, “India's startup ecosystem has reached an important inflection point. While the past decade has been characterised by rapid expansion and strong investor interest, the next phase of growth must be anchored in building enterprises that are sustainable, resilient, and globally competitive. The CII Unicorn Forum's deliberations clearly highlight that enduring value creation goes beyond valuations and is driven by innovation, execution excellence, and responsible scaling. Accordingly, a shift in narrative and policy focus--from valuation-centric growth to value-driven scale--is imperative.”
Drawing on extensive consultations through the CII Unicorn Forum, the report captures founders’ firsthand experiences with regulatory frameworks and scaling challenges. While access to early-stage capital has improved significantly, founders emphasised the need to strengthen funding availability for growth and late-stage expansion, particularly in capital-intensive sectors that require sustained investment to remain globally competitive.
Rahul Garg, Chairman of the forum, said, “The insights captured in this White Paper reflect the lived experiences of founders who are building and scaling businesses in a rapidly evolving landscape. As India moves towards its vision of becoming a USD 5 trillion economy, startups will play a pivotal role in driving innovation, generating employment, and strengthening global competitiveness. It is therefore critical to ensure alignment between policy intent and effective implementation.”
To support this vision, the policy roadmap calls for improved access to growth capital through patient and diversified funding pools, especially for deep-tech sectors. It also advocates proportionate regulatory frameworks that reduce compliance burdens while maintaining safeguards, along with strengthening digital public infrastructure to enable inclusive innovation. The report further recommends targeted incentives to boost research and development and encourage intellectual property creation.
Kris Gopalakrishnan, Chairman of CII’s Centre of Excellence for Innovation, Entrepreneurship and Startups, said, “India has the ambition, talent, and momentum to lead the next wave of global innovation. What is required now is a policy ecosystem that is responsive, forward-looking, and aligned with the needs of modern enterprises. This White Paper is a step towards enabling that vision.”
The report concludes that the next phase of India’s startup journey must be anchored in profitability, efficiency, and technological leadership, while also strengthening linkages between startups and the broader industrial ecosystem to deepen integration with manufacturing value chains and national initiatives such as Make in India.