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The Rise of Indigenous Tech Startups: India’s Journey Towards Self-Reliance

Vishakha Srivastava by Vishakha Srivastava
24 April 2025
in technology
The Rise of Indigenous Tech Startups: India’s Journey Towards Self-Reliance
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Over the last 10 years or so, India has witnessed an amazing transformation when it comes to its use of technology. Driven by a combination of favourable government policy, a booming digital infrastructure, and a young innovative workforce, the country is going through a golden era of indigenous tech startups. What’s going on right now isn’t just about economic opportunity. Rather, it’s a major step towards India’s goal of Atmanirbhar Bharat (self-reliant India) with the vision of reduced dependency on foreign technology and innovation.

While the rise of indigenous startups matter in terms of job creation and GDP growth, there is more going on here. There is the building of ecosystems that exist to empower local talent, address native challenges, and integrate with the unique socio-economic setup that India has. From fintech to agritech and healthtech to edtech, Indian startups are now reshaping the way that the country interacts with technology and it’s all on their own terms.

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Government Support and the Startup Boom

One of the biggest factors behind India’s startup success story is the policy-level support that’s on offer. Initiatives such as Startup India, Digital India, and Make in India have allowed for an environment that encourages entrepreneurs to step up, to innovate, and to scale. These programs offer things such as tax incentives, ease of business compliance, incubation support and access to funding via schemes such as the SIDB Fund of Funds.

The proactive approach taken by the government has helped to transform India into the third-largest startup ecosystem in the world. The country has become home to more than 100,000 registered startups and more than 110 unicorns as of early 2025. When looking at sectors that have benefited, these are the likes of SaaS (software as a service), clean energy, and healthcare. The good news is that this tech revolution is no longer confined to the metros as it is now spreading to Tier 2 and 3 cities meaning that there is now the opportunity to tap into a talent pool that has previously been overlooked.

Localisation and the Digital Bharat Vision

At the centre of India’s indigenous tech revolution you’ll find localisation. The fact that there are over 20 official languages and literally hundreds of local dialects, it was clear that a one-size-fits-all approach was never going to work. Indian platforms are instead building platforms that cater for local languages, cultural differences, and regional behaviours.

Companies such as Koo (an alternative to X in Indian languages that closed in 2024) and ShareChat are great examples of this shift. These platforms thrived thanks to the fact that they aligned their offerings with the unique identities of their users. This means that the result goes beyond just adoption and comes more about true engagement with technology that feels native rather than imported.

Innovation from Necessity

Innovation has come about in India in response to a host of challenges that the country has faced. As an example, limited access to quality education in rural areas has led to a rise in edtech pioneers such as BYJU’S and Vedantu. These are democratising learning by offering affordable digital solutions. In a similar fashion, the healthcare burden has led to startups being encouraged to create AI-powered diagnostic tools, telemedicine platforms, and wearable health trackers that have been tailored so that they are suitable for conditions in India.

There are also agri-tech startups, such as DeHaat and Ninjacart that are transforming the lives of farmers. They are helping to streamline supply chains and provide real-time crop insights by using AI and the Internet of Things (IoT).

Integration with Global Trends

It’s true to say that India’s tech startups are focused on solving local problems, but that doesn’t mean that they are isolated from global trends. In fact, many are integrating technologies such as blockchain, AI, and augmented reality into their offerings. An example here can be seen by looking at the gaming and entertainment tech sector which has boomed in recent years.

With gaming becoming more and more popular across age groups and demographics in the country, Indian developers are creating unique content that is tailored for domestic audiences while also building the backend systems that are capable of powering global platforms. Tools such as minigames api have become essential for developers who are looking to integrate lightweight and engaging games within apps. This is a must in India where there is a mobile-first market.

Indigenous Tech in the Entertainment Ecosystem

One sector that is quickly aligning with the movement towards self-reliance is the online gaming and live entertainment one. Right now, Indian users are spending more time and money on digital experiences, and local companies are certainly taking note. There is clear growing demand for platforms that are able to blend traditional Indian entertainment preferences with cutting-edge tech.

A standout example can be seen by looking at Live88, a live casino games provider. While this company is not indigenous to India, it recognises the advantages that exist by collaborating with Indian tech talent and gaming startups. This allows for localisation and the chance to adapt games so that they fit well with Indian preferences.

Current Roadblocks

While there is plenty of progress, Indian tech startups still face several challenges. The biggest of these is access to capital, especially in the early stages. This is particularly a problem for companies that are outside of the metropolitan hubs. There are also issues with regulatory clarity in sectors such as crypto and fintech and these need to be addressed so that startups can move forward.

Final Thoughts

India is moving towards its centenary of independence in 2047 and this makes the vision of Atmanirbhar Bharat more relevant than ever. Indigenous tech startups are doing more than just responding to market demands. They are now shaping the future of what digital India will look like.

Yes, there are hurdles to overcome, but the focus on innovation and localisation means that these startups can be sure of long-term success.

Tags: Atmanirbhar BharatIndian Startupsindigenous tech
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