The economic liberalization initiated by the Government of India in 1991 opened up tremendous opportunities for entrepreneurship and industrial development in the country. The government has carried out many policy reforms from time-to-time, depending upon the changing needs of society and the economy, and has started a number of schemes and programmes for the promotion of entrepreneurship and start-ups. Due to such progressive decisions, backed by a broad and diverse national innovation system, immense knowledge capital, and a favourable start-up ecosystem, the country is increasingly becoming a leading global innovation player, and has achieved an impressive growth in knowledge-intensive manufacturing and services. This paper describes various factors including the policies and programmes of the Government of India that have resulted in a supportive ecosystem for utilizing innovations, and the promotion of start-ups and new generation technopreneurs in the country. India’s strengths in this regard, as well as its weaknesses in creating sustainable industries, have also been highlighted.