Title: Startups: Backbone of Indian Economy

Thumbnail: Startup Ecosystem
Innovate, Develop, Make-in-India for World

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. Widely recognised as the 3rd largest startup ecosystem; as of July 2021, a total of 52,391 entities are officially recognised as startups by Department for Promotion of Industry and Internal Trade (DPIIT)

Further, there are 53 unicorns currently in India, 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 scope for establishing a thriving startup environment.

Startups: Backbone of Indian Economy

India’s startup ecosystem contributes extensively in boosting India’s economic condition.

Creation of Jobs: The most significant role of the Startup Ecosystem has been the creation of employment opportunities. Over the past years, the establishment of startups with a defined objective has provided an immense opportunity to millions of unemployed people. 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 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, etc.

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.

Startup India initiative

Launched on 16th January 2016 as a clarion call to the innovators, 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. Several policy interventions were since announced, giving the entrepreneurial ecosystem a much-needed launchpad. 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.

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, capital availability, along with 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 coding for school children.

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.