Daybreak India’s innovation engine works. About 5% of the time
Dec 9, 2025
Explore the ambitious yet sobering reality of India's Atal Incubation Centres, which promised to nurture startups but fell short, with less than 5% securing external capital. Hear a founder's frustrations over funding and the lack of essential support from these centres. Delve into the troubling absence of metrics and audits revealing a disconnect between intent and outcomes. Examine examples of both success and failure within the ecosystem, raising questions about the true effectiveness of government investments and support for innovation.
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Founder Trapped By Partial Grants
- Farha joined an Atal Incubation Center and received a government grant but still struggles financially to run non-tech parts of her startup.
- She spends time on hiring, marketing and outreach instead of fundraising or product testing, which stalls growth.
Expansion Without Evidence
- Atal Incubation Centres incubated over 3,000 startups but fewer than 5% raised external capital and many centres lack basic transparency.
- The government plans to expand funding despite limited outcome measurement or audits of the existing network.
Money Without Manufacturing Help
- Hardware founder Siddharth joined an AIC in 2023 and found no help with expensive fabrication or supplier contacts.
- He says most AICs give money but won't help with practical connections or building strategies.