India is home to 107 automotive unicorns, making it the third-largest start-up ecosystem in the world. Over the past 3 years, the country witnessed the establishment of an estimated 30,000+ start-ups and a consolidated inflow of more than $50+ billion. Seed, angel, venture, and private equity funds, along with government, incubator, and accelerator support, have played a significant role in the rapid expansion of the country's automotive start-up ecosystem. Through its flagship Startup India initiative, which was launched in 2016, the government, for its part, is fostering an environment that is favorable to entrepreneurs. To promote enhanced eGovernance, investments, and technological innovation through research and higher education to support entrepreneurship and propel economic growth, the Indian Government is pushing the country toward a knowledge-based and digital economy. The growth of the country's automotive start-up ecosystem has been concentrated on Tier I cities and states with a strong economy, particularly in IT-enabled industries, including eCommerce, transportation, and banking. Beyond the metro areas, small firms are not sufficiently informed of or included in programs that provide government incentives and tax benefits. Despite the progress made thus far, Indian businesses continue to face several challenges, including the fragmented nature of the market in most sectors, a lack of clear and transparent policy initiatives that start-ups can quickly access, the absence of infrastructure, a lack of knowledge and exposure, and difficulties in conducting business. Opportunities for start-ups in the country can be improved by raising public awareness of government initiatives and incentives, allocating credit to priority industries, promoting outreach and network benefits to Tier II and III cities, and simplifying financing and tax breaks for both domestic and foreign investors.