Abstract

Startup India, an initiative of the Government of India launched in 2016, promotes entrepreneurial growth through the relaxation of rules, financial incentives, and enhanced infrastructural facilities. It has experienced high entrepreneurial activity in one of India’s most significant economic centres, Maharashtra. This research critically examines the Impact of the Startup India initiative on the entrepreneurial environment of Maharashtra, with an emphasis on key determinants such as startup creation, access to capital, the efficacy of policy, and structural factors. In addition, the study also discusses the role of the micro, small, and medium Enterprises (MSMEs) sector, which has been the driving force behind economic growth and employment generation in India. The MSME sector plays a significant role in industrialising backwards and rural regions, promoting regional balance, and achieving balanced wealth distribution. In recognition of its role, the Micro, Small and Medium Enterprises Development Act 2006 was implemented to overcome policy impediments, increase investment ceilings, and unify the manufacturing and service sectors under one umbrella. Using a mixed-methods study design, this research paper compares the startup environment in Maharashtra with best practices in India and current inefficiencies. The study identifies the positive reforms introduced by Startup India and the current shortcomings that necessitate policy adjustments. It also examines emerging trends on the horizon, including technological Innovation, and places Maharashtra on the Indian startup map. The research findings offer valuable insights for enhancing policy effectiveness and promoting an entrepreneurial culture in Maharashtra.