2025 POLICY ROADMAP

The Government of India has taken significant steps to support emerging entrepreneurs, including the increase of the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh. This provides more substantial financial support to micro and small enterprises, while the introduction of the "Tarun Plus" category allows entrepreneurs who have successfully repaid previous loans under the Tarun category to access funding between Rs 10 lakh and Rs 20 lakh.

The Open Network for Digital Commerce (ONDC) platform is another initiative that benefits micro enterprises, providing them with a digital marketplace to reach a wider audience

2025 Framework Conditions Review

In 2025, India has a NECI score of 6.2, a slight increase from 2024. The National Entrepreneurial Context Index (NECI) is an overall measure of the quality of an entrepreneurial environment, based on the assessment of that economy’s national experts. This score maintains India’s rank of 5th globally, (of 53 GEM economies). India continues to perform strongly, with consistent improvements in most framework conditions and top-tier rankings across several indicators.

All India’s Framework Conditions are rated by its national experts as sufficient or better (score≥ 5.0). Ten condition scores improved in 2025, and while most changes were marginal, Entrepreneurial Education Post-school increased from 6.0 to 6.4 and Social and Cultural Norms from 6.0 to 6.3. There were slight declines in three scores: the largest being for Research and Development Transfers, down from 6.0 to 5.8. India ranks first in the middle-income group for nine conditions, and in the top ten globally (among 53 GEM economies), for ten conditions, including 2nd for Ease of Access to Finance and 3rd for Entrepreneurial Finance overall.

India’s national experts assessment of new businesses prioritisation of sustainability rose from 6.0 to 6.7, ranking India first for both in the middle-income group. Entrepreneurs perceived awareness of the need for AI solutions also improved to 6.7 from 6.0.

India’s entrepreneurial ecosystem in 2025 remains robust and globally competitive, with a  high NECI score and top-tier rankings across nearly all framework conditions. All 13 conditions meet the sufficiency threshold, and most have improved. The country leads in sustainability priorities, and is strong in AI awareness. These results reflect a dynamic and well-supported environment for entrepreneurs, with strong institutional backing and a forward-looking approach to innovation and inclusion.

 2025 Entrepreneurial Activity Review

Just over one in three adults in India report that their household income fell in 2025, down from two in five the year before: the fourth successive year that this proportion has fallen.

Entrepreneurial awareness in India is reasonable, and confidence and opportunity recognition are high. More than one in two adults know someone who has started a business recently, while four out of five see themselves as having the skills and experience to start their own business, or see good opportunities to start a business locally. However, of the latter, more than half would not start that business for fear it may fail. Business intentions are high, with more than one in four adults expecting to start a business in the next three years.

The proportion of adults actually starting or running a business in India has been stable over the last three years at around one in eight, with established business ownership at about half that rate: so two people are starting new businesses in India for every person owning an established one. In 2025, men and women were more or less equally likely to be starting a new business. The proportion of new entrepreneurs with customers outside their own country multiplied in India in 2025, although it is still a lowly one in twenty. Nearly one in two new entrepreneurs expect to use more digital technology to sell their product in the next six months, but just one in twenty anticipate employing more than another five people in five years’ time. Two in five new entrepreneurs claim to have acted to minimise environmental impact in the last twelve months, rather more than acting to maximise social impact, although almost nine in ten report prioritising such impacts over profitability or growth