Startups have emerged as a major driver of economic growth, innovation, and employment generation in India. Supported by government initiatives such as Startup India, Digital India, and the expansion of the digital economy, the Indian startup ecosystem has experienced significant growth across sectors including technology, healthcare, education, finance, agriculture, and e-commerce. Despite these opportunities, startups continue to face several challenges, including limited access to funding, intense market competition, regulatory complexities, talent acquisition and retention issues, and difficulties in scaling operations. This study examines the key challenges and opportunities influencing the growth and sustainability of startups in India. The research highlights the role of government policies, technological advancements, digital infrastructure, and increasing investor interest in fostering entrepreneurial development. It also explores the strategies adopted by startups to overcome operational and financial barriers. The findings suggest that while the Indian startup ecosystem offers substantial growth potential, sustained success depends on innovation, effective business planning, supportive policies, and access to financial and human resources. The study concludes that addressing existing challenges through collaborative efforts among government, investors, educational institutions, and entrepreneurs can strengthen India's position as one of the world's leading startup ecosystems.