Start up and Stand Tall (On India’s start-up ecosystem)

Relevance: Demographic dividend and role of start-ups in Indian economy

Synopsis: India@75 is on the height of change and, it needs a golden era of global entrepreneurship, technology, and innovation for India@100.

Context

While India has historically and culturally been an entrepreneurially-driven nation, the last decade-and-a-half has witnessed a significant change in the landscape — from the founding of new startups, to global investor interest, to the advances made in infrastructure and policies.

India’s unique position in the world

1. First, India has 62% of the population in the working age group. And the ability of the young generation to take risks, move fast, and disrupt things without fear, has become the biggest asset today.
   • Indians likely to have an estimated 850 million internet users by 2030 and, it has the opportunity to be a global game-changer.
2. Second, in 2021 alone, Indian startups have raised $20 billion in funding. The startup economy has brought new business opportunities, innovation, tech-centric approaches and job creation across sectors. It paves the way for innovation and expanding global footprint.
3. Third, according to Nasscom, India has 50-plus strong “Unicorn club” in 2021, the country now finds itself at the epicentre of entrepreneurship.
   • unicorn refers to any startup that reaches the valuation of $1 Billion.

Growth of start-up ecosystem in India

Today, India is home to more than 40,000 startups and is building a robust tech and internet infrastructure. The steady rise of Indian IT companies in the 2000s, a large talent pool of a skilled workforce, increased expendable income, and rising capital inflows have all contributed to this.

• Indian startups are also taking big strides in building synergies and partnerships with global entities.
• Amid the Covid-19 pandemic, Indian startups have rapidly innovated to provide indigenous, tech-enabled solutions to combat challenges.
• One of the paradigm shifts has been systemic shift to online education and remote learning at scale.

What more can be done?

• Education, reskilling, and upskilling of our workforce is crucial.
• Apart from policy-level decisions, India’s corporate sector should cultivate entrepreneurialism, and create partnerships to build impactful technology solutions, sustainable and resource-efficient growth.
• Focus on developing solutions that allow businesses in key sectors to meet goals of national importance.

Conclusion:

The collective efforts of the public and private sectors to improve physical and digital connectivity will help unlock the untapped potential of rural and semi-urban India to truly lead Industry 4.0.

Terms to know:

• Industrial Revolution 4.0