By Suresh Narasimha
India has been redefining the startup space for over a decade now and today boasts a thriving ecosystem of over 100 unicorns. But every rocket needs a launchpad, and that’s where incubators come in. They are the training grounds where startups sharpen their edge—refine ideas, build networks, and secure funding—before entering the competitive market. There are over 1,100 active incubators and nearly 10,000 Institution’s Innovation Councils (IICs) under the Ministry of Education (MoE) in India currently.
Addressing challenges head-on
Innovation in India requires a multifaceted approach. From rethinking education and skill development to reshaping industry collaboration and redesigning support structures. This is because the startup ecosystem in the country faces many challenges, all of which require alignment with industry needs and the right support systems.
For instance, startups often struggle with product development, lacking access to labs, skilled interns, and expert mentors. Incubators bridge this gap, offering resources to refine prototypes. In this ever-evolving landscape, market access is yet another huge hurdle. But demo days and pitch fests allow startups that are part of an incubator program to pitch their products to investors, providing that all-important exposure to industry connections.
Proactive incubation managers can make a huge positive impact on any startup’s chances of success, as they provide opportunities for the founders to meet the right investors. Likewise, mentors provide advice that can fast-track startups on the path to success.
The nerve centres of startup activity
The strategic planning and sustained efforts of incubators have a key role to play in India’s thriving startup ecosystem. This is an indisputable fact that even the government recognizes. As the nerve centres of startup activity, incubators deservedly have strong backing from the government. State governments are now focusing on fueling regional incubators. While Telangana has WE Hub, and the Uttar Pradesh government support incubators through the Amity Innovation Incubator.
Programs like NIDHI-PRAYAS and Startup India Seed Fund Scheme (SISFS) provide grants ranging from Rs 10 lakh to Rs 5 crore. Today, many labs, like the DRDO’s in Electronics and Radar Development Establishment (LRDE) are backed by funding from the government and private sectors. Incubators even have the support of department-backed programs like Innovations for Defence Excellence (iDEX) and from ISRO.
Unlocking the potential of R&D
Apart from connecting entrepreneurs with investors, incubators also bridge the gap between research and commercialization. This is indeed a huge challenge. Citing data from the Department of Science and Technology, the Economic Survey 2025 showed that only around 36% of Research & Development is funded by the private sector.
Incubators hold the solution to this, as they enable startups to successfully monetize their innovation, thereby bringing in interest from private players. This also has larger global ramifications. Equipped with a huge pool of talented innovators and bolstered by government support, incubators are the key to strengthening India’s position as a global innovation hub, as they present a lucrative opportunity for global accelerators to establish a presence in the country.
India’s startup advantage
Incubators are constantly evolving to enhance their capacity and capabilities, and the upcoming Startup Mahakumbh is the perfect platform to accelerate this growth. It will bring together over 3,000 startups and more than 500 investors from over 50 countries. Such collaborative initiatives empower incubators in shaping the future of India’s entrepreneurial landscape.
By 2030, new unicorns are likely to add $1 trillion to the Indian economy, thereby creating over 50 million jobs. Not just that, by 2030 India is expected to be on track to having around 250 unicorns, with startups across sectors like fintech, AI, SaaS, deep tech, and e-commerce. And incubators will continue to drive the next wave of entrepreneurial breakthroughs.
Suresh Narasimha is the Founder of Co-Create Ventures. Views expressed are personal. Reproducing this content without permission is prohibited.