This chapter explores the transformative role of government in fostering social justice through an inclusive startup ecosystem, with a focus on India’s historically marginalized communities. Rooted in centuries of caste, class, and cultural inequalities, India’s social disparities have proven resistant to traditional redistribution and welfare approaches. While post-independence policies emphasized social equity, they often neglected direct economic empowerment. The emergence of technology and innovation offers a powerful new pathway to inclusion—especially when governments invest in startups led by marginalized individuals. Through policy interventions, funding, mentorship, and ecosystem development, governments can catalyze meaningful social change. The chapter presents a case study of the Government of Tamil Nadu’s Periyar Social Justice Venture Lab and SC/ST Startup Fund, showcasing how strategic investments in founders from the marginalized communities not only enables economic mobility but redefines identity and agency. Tamil Nadu’s model goes beyond token inclusion, framing entrepreneurship as a tool for structural justice. It challenges entrenched narratives and demonstrates how inclusive innovation can drive both societal transformation and sustainable development. This chapter argues that such efforts are not only essential for equity but provide a replicable blueprint for inclusive economic development globally.