Keywords : Start-ups, Indian economy, GDP correlation, Economic growth, Policy initiatives

Abstract : In a nation grappling with a burgeoning population, start-ups emerge as a vital avenue for employment generation and economic progress. This paper explores the intricate relationship between start-ups and the Indian economy, emphasizing their impact, growth patterns, and correlation with the Gross Domestic Product (GDP). The study reviews existing literature, highlighting the rapid expansion of India`s start-up ecosystem, propelled by governmental initiatives such as "Start-up India" and "Make in India." The primary objective is to analyze the significance of start-ups in India, their interaction with the Indian GDP, and their crucial role in shaping the country`s economic trajectory. The paper presents comprehensive data analysis, revealing a positive correlation between the number of start-ups and GDP, showcasing their potential to significantly contribute to economic growth. However, the relationship is nuanced, with the growth rate of start-ups displaying a negative correlation, suggesting complexities in the sector`s expansion. The F-test underscores the interconnected nature of start-ups and GDP, emphasizing the need for a nuanced understanding of their relationship. In conclusion, the study emphasizes the critical importance of addressing challenges, creating an enabling policy environment, and promoting sustainable start-ups. India`s burgeoning start-up ecosystem holds immense promise in driving the nation toward its economic aspirations, cementing its position as a global hub for innovation and entrepreneurship, and helping achieve the ambitious goal of becoming a $5 trillion economy through sustained support and strategic initiatives.

Download