India recognised more than 55,200 startups during FY2025-26, the highest number in a single year since Startup India began. By March 31, 2026, the cumulative number of DPIIT-recognised startups reached 2.23 lakh. These business entities generated more than 23.36 lakh direct jobs.
Vijay Bawra, Vice President of New Initiatives and Growth at SanchiConnect, noted that support programs should focus on milestone-based outcomes.
Instead of measuring support by workshops, mentoring hours, or pitch opportunities delivered, programs should evaluate what uncertainty a startup eliminates during its time in the program. Bawra argued that effective initiatives should check whether the problem is real, whether the product solves it, whether customers adopt it, whether they pay for it, and whether the business grows beyond the program’s support.
Mentorship and Pilot Testing
Mentorship should connect to the most immediate constraint a startup faces, according to Bawra. Founders searching for product-market fit need help interpreting customer feedback.
Startups preparing for enterprise customers need guidance on procurement, pricing, and implementation. Companies with proven demand need direction on hiring, unit economics, or repeatable sales. Bawra suggested that programs shift from fixed mentoring sessions toward milestone-based supportive sessions, asking what decision a founder made better because of a mentor.
Pilot opportunities serve as valuable elements because prototypes face real tests when customers use them. A healthcare device may work technically while hospital staff find it difficult to operate.
A manufacturing solution may solve an operational problem but require an integration the customer cannot justify. Pricing tests against actual procurement budgets often reveal product failures. Pilots let founders uncover gaps, test products in real environments, and refine them before full-scale commercialization.
The GeM Startup Runway in India allows startups to showcase innovative products and services to government buyers, bridging innovation and actual procurement.
Programs can define what a pilot is expected to prove before it begins, examining usability, technical performance, willingness to pay, implementation feasibility, or a path to procurement. Successful pilots need clear outcomes and pathways toward adoption, procurement, or longer commercial relationships.
Funding and Post-Program Measurement
The same milestone-based approach can be applied to startup funding. Providing financial support to an unproven idea does not automatically build a viable business. Initial funding should allow entrepreneurs to verify hypotheses, develop prototypes, and generate proof of concept. Funding can then facilitate market entry and growth after proving the need.
The Startup India Seed Fund Scheme finances startups across different growth stages. It provides financing of up to Rs 20 lakh in the form of a grant for proof of concept, prototype development, or product testing. It offers an opportunity to access an additional Rs 50 lakh if the startup is ready to enter the market.
The evaluation of a startup program extends to what happens after the cohort ends. Questions include whether founders secured customers, if pilots turned into deployments, if they attracted follow-on investment, if teams grew, and if founders became better equipped to make independent decisions. Strong startup programs measure success by what continues to happen after the cohort is over, building capabilities, relationships, and market understanding.
