The Startup is not a new concept; it exists right from the first industrial policy. The private entrepreneur has been encouraged to establish industrial units. However, the startup India initiated by the present government, to encourage new generation to enter into the production/manufacturing/trading activities. According to this initiative there are many opportunities for the young generation to startup with their new ideas. To facilitate the growth of startups and provide encouragement, Startup India initiative was announced on 15th August, 2015. This initiative has rolled out several programs with the objectives of supporting entrepreneurs, and transforming India into a country of job creators instead of job seekers and also provide 19-point action plan to promote Startup India initiative. The research proposes to find opportunities and challenges of Startup India initiative with reference to Gujarat and Maharashtra and suggest measures to solve issues and challenges of Startups in India.