|The startup ecosystem in India has been oozing positivity in our Nation by being the important engine for growth and job generation and due to vast commercial potential for startups, India is often described as the poster child of emerging markets.
Five years since the launch of the Start-Up India initiative by Prime Minister Narendra Modi, India is witnessing a golden chapter in the history of Indian entrepreneurship. Recognised as the 3rd largest startup ecosystem; as of July 2021, a total of 52,391 entities are officially recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT).
Further, India is a dwelling abode to 53 unicorns currently, with a tentative valuation of Rs. 1.4 lakh crore. Apart from it, India’s economy, demography and government’s active support provides a wide spectrum and scope for establishing a thriving startup environment.
Startups: Backbone of Indian Economy
India’s startup ecosystem contributes extensively to boosting India’s economic condition by contributing in the following aspects:
Creation of Jobs: The most significant role of the Startup Ecosystem has been in generating employment opportunities. Over the past years, the establishment of startups with a defined objective has provided immense opportunities to millions of unemployed people, both in rural and urban India. As of 2021, more than 5.7 lakh jobs have been reported by more than 50,000 startups.
Creation of wealth: The main objective of the startup ecosystem establishment is to stimulate equitable redistribution of income. Startup ecosystems are dedicatedly promoting small-scale industries in rural and urban areas. The continuous and consistent growth of small scale industries would ultimately build & assist in developing different sectors, including education, infrastructure, health, among more.
Expansion in GDP: Startups plays an essential role in enhancing any country’s economic development. The World Bank has stated that India will become the fastest-growing nation with profitable economic growth in the world.
Expansion in Export: A well-established Startup Ecosystem also plays a vital role in gaining foreign exchange by the way of increased exports. Startups producing quality products and exporting to other countries will help in improving the nation’s foreign exchange.
Startup India initiative
Launched on 16th January 2016 as a clarion call to the innovators and entrepreneurs; Startup India is all about creating prosperity in India by nurturing innovation and empowering startups. The initiative kickstarted an entrepreneurship revolution in the country. According to Praxis Global Alliance, start-ups are growing at an average rate of 12–15% annually. Start-ups have raised $63 billion between 2016–20 in funding. A much-needed launchpad has been provided to the entrepreneurial ecosystem by way of several policy interventions by the government from time to time. The Atal Innovation Mission, Niti Aayog, has built an ecosystem of 8,800 tinkering labs, 4,000 mentors and over two-and-a-half million students acted as a conduit for over 3,500 innovations while supporting 1,500 start-ups.
Indian Startups: The changing landscape
The third-largest ecosystem in the world, in 2018, India had about 50,000 startups; around 8,900 – 9,300 of these are technology-led startups whereas, 1300 new tech startups were born in 2019 alone, implying there are 2-3 tech startups born every day. In 2020, India achieved a rare feat by joining the league of the top 50 innovative economies.
The Support of Atmanirbhar Bharat Campaign
The Atmanirbhar Bharat scheme has turned out to be a blessing in disguise. As the world pivoting & unfolding the new socio-economic landscape, the government of India is unveiling “Startup India: The Way Ahead” that is fundamentally responsible to fuel the startup movement in India which is a key driver of creating an Atmanirbhar Bharat. With this, the government intends to provide an all-inclusive vision for a vibrant and vigorous startup movement.
The Road Forward
The startup ecosystem in India is flourishing at a rapid pace, all thanks to the growth and advancement of Indian IT companies, the availability of capital and investors, along with the much-needed government policies and support. The startup ecosystem acts as a catalyst in bridging the digital divide in rural areas; promoting Agri-startups, startups in high-end technology and most importantly, integration with school curriculum as the recent National education policy 2020 offers vocational education in partnership with industries and introducing entrepreneurship programs at the school level.
The Indian government is playing an essential role in positioning India as the ‘Tech Garage of the World’, and the startup ecosystem is bringing together the synergies of the private sector with the aim of innovating for India and the world.