Purpose– The study proposes to explore the connection between the increasing Business Incubators and their impact on the state’s Gross Domestic Product (GDP). Given the role played by startups in promoting economic growth by generating employment and improving standard of living. The study aims to explore the impact of Business Incubators on economic performance at the state level in India.

Design/methodology/approach– The study harnesses historical data published by Indian government agencies, as well as international reports and other credible sources. States to be categorised into four regions and analysed using SPSS software by running correlation and regression between number of incubators and the states’ GDP.

Findings– The finding exhibits true relationship between number of business incubators and the states’ GDP. It has been seen that the states with more concentration of incubators display positive contributions to their economic performance, demonstrating the impact created by incubators on stimulating entrepreneurship and innovation.

Originality/value– This study offers novel insights into the evidences provided by business incubators and their effectiveness in fostering economic performance at the state level in Indian context. It underscores the pivotal role played by government in scaling the incubation initiatives to bolster innovation and economic resilience across India.