Domestic capital inflows, particularly from domestic institutional investors (DIIs) and banks, have become crucial for India's entrepreneurial ecosystem, providing funding and stability amid global market fluctuations. This surge reflects a shift towards equities, driven by increased retail participation through SIPs and mutual funds. Banks now play a vital role in financing startups through tailored lending programmes and dedicated funds for SMEs and startups. Initiatives such as Mudra Yojana offer collateral-free loans, while partnerships between banks and fintech companies enhance access to capital by streamlining loan processes. Rising domestic inflows create a more resilient financial environment, allowing entrepreneurs to innovate without relying heavily on foreign investments, fueling entrepreneurial activity and contributing to a robust economic framework in India.