Drop in Startup Launches by IIT, IIM Graduates This Year

Quick Summary

• Entrepreneurial activity among Indian Institutes of Technology (IIT) and Indian Institutes of Management (IIM) graduates has significantly declined in 2025.
• Only 36 startups were founded this year by IIT/IIM alumni compared to 236 in 2024 and 383 in 2023,according to Tracxn data.
• Startups founded by women graduates from IITs/IIMs dropped sharply to just three, down from 34 (2024) and 61 (2023).
• Broader macroeconomic challenges like inflation,elevated interest rates,global uncertainties,and cautious investor behavior are cited as reasons for the slowdown.
• Experts urge interpreting the data cautiously; they view this period as a market correction rather than diminishing aspiration among Indian youth.

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Indian Opinion Analysis

The notable decline in entrepreneurial ventures led by IIT/IIM graduates points towards broader economic trends impacting risk-taking behavior across industries. A tightening funding environment amidst geopolitical instability and inflationary pressures has likely restrained investors’ willingness to back startups. This illustrates how external conditions can heavily influence innovation ecosystems.

While current numbers might seem alarming-especially the steep drop in women-led startups-experts suggest viewing this downturn as temporary rather than indicative of reduced ambitions or capabilities among India’s top-tier talent. The situation also reflects a natural market recalibration following periods of hyperactivity during prior years. Policymakers may consider interventions or incentives that encourage entrepreneurship during such corrections by fostering financial stability or reducing barriers for new ventures.

This progress raises broader questions about India’s ability to sustain its startup growth momentum amid global uncertainties while ensuring inclusivity across gender lines within entrepreneurship circles. How support systems adapt will determine whether such declines become enduring trends or passing phases.