Start-up Expansion and Employability Trends in India: An Empirical Analysis

Abstract

The expansion of the start-up ecosystem in India plays a vital role in achieving the vision of Viksit Bharat 2047, over the last decade; India has emerged as one of the fastest-growing start-up ecosystems globally, supported by policy initiatives, digital development, and increasing entrepreneurial activity. This paper examines the growth of DPIIT recognized start-ups in India and analyses employability trends during the period 2016–2025. The study is based on secondary data obtained from the Department for Promotion of Industry and Internal Trade (DPIIT) and the India Skills Report 2025. Descriptive analysis, trend regression, and compound annual growth rate (CAGR) techniques are employed to assess patterns and relationships. The findings indicate strong and exponential growth in start-ups, with an average annual increase of about 22,240 start-ups and a CAGR of approximately 95.26 percent. In contrast, employability trends show gradual and uneven improvement across years. Significant variations are observed across gender and educational domains, with higher employability among engineering and management graduates, while arts, commerce, and vocational streams continue to face challenges. Gender-wise analysis reveals fluctuating employability outcomes, pointing to persistent structural constraints. The study concludes that quick start-up expansion alone is insufficient to ensure inclusive employability gains. Greater alignment between start-up growth, skill development initiatives, and education systems is essential for translating entrepreneurial expansion into sustainable and inclusive employment outcomes in India.