India is set to become youngest country by 2020. But when the term employment is concerned, the job availability in India is limited, and Even when cheap manpower is available in India on large scale and to counter these situation new jobs should be created. Tier 1 cities are having abundance of job opportunity but the same is lacking in tier 2 & tier 3 cities. On other hand Demographic dividend of India is on a positive track, to take advantage of Demographic Dividend Government of India announced a Scheme ‘Startup India’. Startup India Campaign aims in promoting bank financing for start-up ventures which eventually boost entrepreneurship which ultimately result in job creation. In this research paper, researcher wants to light upon the role of startup on economic growth & the benefits &issues occurring in Startup Scheme. Analyzing the issues even proper suggestions are listed by researchers.