India, Dec. 31 -- The Indian startup ecosystem marked a clear shift in 2025, from survival to consolidation. After two years of capital tightening, the narrative moved decisively towards liquidity, scale, and strategic alignment with national priorities.

The year saw Indian startups operate in a far more disciplined environment. Growth was no longer pursued at any cost, valuations corrected to more realistic levels, and investors prioritised business models with clearer paths to profitability and defensibility.

At the same time, emerging sectors like spacetech, defence tech, semiconductors, and GenAI gained prominence, reflecting a broader shift towards capital-intensive, IP-led innovation.

This change was mirrored in capital flows. Wh...