Startups are the engine of economic growth and development. Startups generate innovative employment opportunities, especially for the young generation of a country. The present study analyses the overall scenario of startups in the Indian economy. The study also focuses on the growth of startups working in different sectors of the economy. The study also highlights the employment generation by startups in India. The various sources of funding for startups are also discussed in detail. The study is based on the secondary data sources. The result of the study revealed that Maharashtra is a leading state in terms of startup development. The study revealed that more startups are working in the enterprise tech sector followed by e-commerce, fintech, consumer services, and health-tech sectors. The study found that approximately 4.7 lakh jobs are created by startups. It is also found that bootstrapping is the main source of the startup funding in the initial stages of startup development. Therefore, startups are positively contributing to the growth of Indian economy by innovations and employment generation, increase in demand, decrease in imports, regional development, and increase in GDP etc.

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Keywords: Startups, Sectors, Enterprise-tech, Innovation, Indian Economy.