India's start-up story remains robust

The ecosystem would experience rationalisation of valuations in the current period, with funding expected to gradually increase from Q3 2023-24

India has experienced an unparalleled start-up growth in the last six years, from recognised start-ups at just over 400 in 2016 to a whopping 92,683 as on February 28, 2023. Currently, the start-up ecosystem contributes 2.5-3 per cent of India’s GDP, which is expected to increase to 4-5 per cent by 2025. This growth has penetrated across sectors.

Recent news reports of reduced funding for start-ups should not be seen as a sign of any slump in optimism. This is the time of consolidation for the start-up sector. Every start-up ecosystem goes through a few cycles, which help realign the