India currently has the third-largest startup ecosystem in the world with 12-15% growth expected in the next few times. More than 50000 startups are operated across India with around 8,900 to 9,300 startups based on technology. In the year 2019 alone around 1400 new technology-based startups were started which suggests that about 2 to 3 new technology startups are started every day in India.
Factors that increase the startup ecosystem
The growth rate of the startup ecosystem in India has increased by 15% while the number of incubators and accelerators has seen an increase of up to 11%. Along with this in particular the number of women entrepreneurs has also increased from 10% to 14% in the last two years.
The total jobs in the startup ecosystem in India are around 1 crore 16 lakh to 1 crore 17 lakh out of which 40,000 new jobs are being produced every year only by startups in India.
Factors encouraging startups in India
According to a survey conducted by Innoven Capital at around 140 startup founders the major factors that have established India as a startup nation are:
1) Cost of Doing Business
2) Proximity to customers/Vendors
3) Size of Domestic Market
Every year around 70 lakh college graduates join a startup. Also, according to a survey conducted on India's 150,000 youth 55% of India's youth prefer to work in a startup company rather than working in a corporate.
To start a startup one must be new age but should have the ability to take hard work creative ideas and risk. As you know Facebook owner Mr. Mark Zuckerberg, he started his startup at the age of 19 and friends today his success is known to the whole world.
India is the second largest internet consumer market in the world which will soon overtake China in this matter. India has about 56.45 million internet users out of which 90% use internet on mobile only.
Preferred sector for startup
As online business and aggregators are getting mature in India, the competition to bring online sectors like financial, education and health and connecting with technology has increased. 65% of the startups across India include cities like Bangalore, Mumbai and New Delhi and are their first choice. Bangalore has also been included in the 20 leading startup cities of the world in the startup genome project ranking conducted in 2019.
Support for Startup ecosystem
Incubators, accelerators, and co-workers in India support it in the early stages of a startup.
Infrastructure: Over 280 incubators, accelerators and co-working spaces with annual growth up to 40%. Second and third tier cities are also joining it due to traction since 66% of new incubators are installed.
Funding: Up to $ 4 billion was funded in approximately 1,040 deals. The deal price was reduced by 55% in 2015 which saw its number grown by 3%. On an average, 4 deals were announced every weekday till 2016. The number of angel investments increased significantly due to the 20% increase in active investors. Apart from this, Investors around the world like Alibaba Group, Soft Bank, Sequoia and Foxconn etc. are also starting to invest in India's Startup ecosystem.
Corporate Connect: Now, entrepreneurs in India are beginning to realize the immense potential of startups and are therefore either partnering or investing in it. Through similar corporate support, the Wipro Company has invested $ 100 million in fund start-ups. Apart from this, IBM is also involved in partnership with 100 big data and IT related startups of India.
Government Support: The Government of India is also recognizing innovators working around the value chain and using their innovations and ideas to better serve the people. A major challenge has been organized by the Department of Animal Husbandry and Dairying under the Startup India Mission in the Government of India, in which up to ten lakh rupees will be provided to the top startups selected in 5 categories.
Apart from this, small industries development bank of India has also launched a scheme to provide assistance to the needy small and medium scale industries for capital growth. At the same time, policies have been implemented in 26 states of India to facilitate Startups to promote Startups.
Startup India mission
The Startup India mission of the Government of India has been launched with the objective of promoting startups and new innovative ideas in the country.
Startup India is a major initiative of the government of India through which the Government aims to create a startup ecosystem which is a large number of along with providing jobs to the youth takes the country's economy to a better level. Through this the government is keen to carry forward the tradition and policy of sustainable economic development of the country.
To fulfill the objectives associated with this initiative the Government of India action plan has also been announced which covers all the areas associated with startup India. With this action plan the government intends to pursue the startup mission even more rapidly which includes:
-Many other fields ranging from digital/technology to agriculture, production, social, health, education.
-Cities from the first level to the second and then the third level including semi-urban and rural areas.
These action plans are divided into the following three areas:
-Facilitation and preliminary assistance
-Support, incentives and grants
-Participation and guidance of industry related educational institutions
The government is also keen to strengthen it internally and externally by working on all aspects of its plan to bring a new change in the startup ecosystem so that the economic development of the country can happen at a faster pace.
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