Government Agencies supporting Business Growth

With the aim of providing easier access to business services and clear pathways for setting up businesses in India, the Government of India has restructured several departments and established new bodies to support business growth. The Department for Promotion of Industry and Internal Trade (DPIIT) plays a key role in promoting the country’s industrial development by encouraging investments in new technologies, formulating the Central Government’s industrial policy, and fostering balanced growth within the industrial ecosystem.

Start-up Ecosystem - The DPIIT has been at the forefront of transforming the startup ecosystem through strategic initiatives that foster innovation and empower entrepreneurs to drive growth. The Government of India has launched several initiatives to strengthen the startup ecosystem, including the Startup India Action Plan, Credit Guarantee Scheme for Startups (CGSS), income tax incentives, and the National Startup Awards (NSA). As of December 2025, India had over INR 0.207 million DPIIT-recognized startups, generating employment for more than INR 2.19 million people and reinforcing its position as the world's third-largest startup ecosystem. Around 50% of DPIIT recognized startups originate from Tier-II and Tier-III cities, reflecting the growing democratization of entrepreneurship beyond major metropolitan regions. The Government has further expanded ecosystem support through AIM 2.0, which focuses on piloting innovative interventions and scaling successful models in partnership with governments, industry, academia, and local communities. Complementary programs such as SVEP, ASPIRE, and PMEGP continue to promote rural entrepreneurship, women-led enterprises, and employment generation at the grassroots level.⁶

Green Logistics Industry⁷ - The Government of India has undertaken several initiatives to promote a sustainable, efficient, and digitally integrated logistics ecosystem. The PM Gati Shakti National Master Plan continues to strengthen multimodal connectivity by integrating highways, railways, ports, airports, logistics parks, and inland waterways on a unified geospatial platform. As of 2026, the platform covers 57 ministries and departments and incorporates more than 1,700 GIS data layers, enabling coordinated infrastructure planning, reducing project delays, and improving logistics efficiency. Complementing this, the National Logistics Policy (2022) promotes end-to-end digitalization, process standardization, and technology adoption across the logistics value chain. Digital initiatives such as the Unified Logistics Interface Platform (ULIP), Logistics Data Bank (LDB), Gati Shakti Cargo Terminals (GCTs), and the Freight Greenhouse Gas Calculator enabling real-time data exchange, improved cargo visibility, and emissions monitoring. ULIP now integrates 44 systems across 11 ministries spanning more than 2,000 data fields, significantly improving interoperability among ports, airports, customs, railways, and road transport.

Invest India⁸ is the country's official Investment Promotion and Facilitation Agency, serving as the primary point of reference for potential investors and providing sector and state-specific hand-holding support across the entire investment cycle, from location identification and regulatory approvals to aftercare services. In FY 2025-26, the agency facilitated 60 investment projects worth over USD 6.1 billion across 14 states, nearly three times the FY 2024-25 levels, generating an estimated 31,000 jobs, with Europe as the leading investment source at 42% of total value.

NITI Aayog (National Institution for Transforming India) serves as the policy think tank of the Indian Government, focused on enhancing the country’s economic growth. It plays a key role in shaping India's development agenda, monitoring and evaluating the implementation of government programs and policies, and working to transform India into a prosperous and inclusive society. In 2025, it is leading the formulation of the Viksit Bharat 2047 blueprint, which outlines India’s goal of becoming a USD 30 trillion economy by 2047.

IndiaAI Mission¹⁰ is the Government's flagship initiative to position India as a global leader in Artificial Intelligence. Approved in March 2024 with a budget outlay of approximately USD 1.09 billion over five years, the mission aims to strengthen India's AI ecosystem through investments in computing infrastructure, indigenous foundation models, datasets, talent development, startup support, and responsible AI governance. India has expanded its AI computing capacity from an initial target of 10,000 GPUs to 38,000 GPUs, providing affordable access to high-performance computing for startups, researchers, and enterprises. The country hosts over 1,800 Global Capability Centers, including more than 500 AI-focused centers, while around INR 0.18 million startups are driving innovation, with nearly 89% of new startups launched in the previous year incorporating AI into their products or services. The highest levels of AI adoption are observed across the industrial and automotive, consumer goods and retail, banking, financial services and insurance, and healthcare sectors, which together contribute around 60% of AI's total economic value. Under the IndiaAI Foundation Models pillar, Sarvam AI, Soket AI, Gnani AI, and Gan AI have been selected to develop sovereign Large Language Models tailored to Indian languages and use cases.

Ministry of Micro, Small & Medium Enterprises (MSME)¹¹ - The MSME sector remains a cornerstone of India's economy, contributing 31.1% of GDP, 35.4% of manufacturing output, and 48.58% of the country's exports, while employing more than INR 389 million people, making it the second largest source of employment after agriculture. The Government has introduced several initiatives to strengthen the sector's competitiveness, formalization, and access to finance. As of June 2026, registrations under the Udyam Registration Portal and Udyam Assist Platform have crossed INR 87 million, expanding access to institutional credit, government schemes, and market opportunities. To further improve financing, the Government has increased the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee ceiling from USD 0.52 million to USD 1.05 million, while initiatives such as the MSME Champions Scheme, Zero Defect Zero Effect (ZED) Certification Scheme, and the Micro and Small Enterprises Cluster Development Programme (MSE CDP) continue to promote quality enhancement, digital transformation, sustainability, innovation, and export readiness.

In addition to Central Government initiatives, state governments facilitate investments through dedicated investor facilitation agencies and industrial development corporations that assist businesses with land acquisition, regulatory approvals, and project implementation. States also offer sector-specific incentives based on investment size, location, and employment generation, including Investment Promotion Subsidies (IPS), stamp duty and electricity duty exemptions, GST reimbursement, and other fiscal benefits.

• 6.Ministry of Skill Development and Entrepreneurship, https://pib.gov.in/PressReleasePage.aspx?PRID=2038380#:~:text=notification%20127%20(E)%20dated%2019th,are%20placed%20as%20Annexure%2DI.
• 7. Ministry of Commerce & Industry, (click here for reference)
• 8. Invest India, https://www.investindia.gov.in/about-us
• 9. NITI Aayog, https://www.niti.gov.in/
• 10. IndiaAI Mission - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2178092
• 11. MSME - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155677