The country’s project organizing activity witnessed a decrease in ASHARP this year, especially among new graduates from Indian Institutes of Technology (IITS) and Indian Management Institutes (IIMS), slowing down experts to investors who turn largely in the event of uncertainty in the macroeconomic and geopolitical economy.

According to the data collected for ET by Tracxn, a market intelligence platform, only 36 startups were established by graduates of these distinguished institutions in 2025 until now, compared to 236 in 2024 and 383 in 2023.

However, the numbers should be carefully interpreted. “The temporary decrease in entrepreneurship between graduates from leading institutions such as IIMS and IITS should not be misrepresented as a retreat from ambition in Indian youth,” said Hemancho Rai, IIM Director, IIM Indore ET.

According to him, the decrease in symptoms of the opposite winds of the macroeconomic economy is wider.

Labor market is soft

The opposite winds include universal uncertainty, a more cautious financing environment, inflationary pressures, and high interest rates, says Rai.

I attributed Niha Singh, head and director of management at TracXN, the slowdown in the startup activity to an tightening financing environment. She said: “This is because of the global economic uncertainty and high interest rates prompted investors to adopt a more cautious approach.” The startups established by IIMS and IITS graduates have witnessed a radical decrease to three since the beginning of this year from 34 and 61 in 2024 and 2023, respectively, according to Tracxn data.

This is in line with the total decrease in the number of startups established by women in the country to 26 until now in 2025 of 328 in 2024 and 582 in 2023.

“This stage should be considered a correction of the market rather than a decrease in the spirit of initiative,” Singh said.