India has marked itself as the fastest-growing economy. And once again we are headed in the same direction. According to the Economic Survey, India may once again emerge as the world’s fastest-growing economy. In 2021, we witnessed the country’s economy clock an 8.4-percent uptick between July and September compared with the same period of 2020. And the calculation holds more for the year 2022.
Startups are social enterprise accelerators. Within the short span of a month of 2022, India has seen registration of around 14,000 new startups which is approximately 20 times that in the previous 5 years.
Government initiatives have only stood as pillars to our emerging entrepreneurs. The importance of innovation in the Indian startup ecosystem and the need to constantly evolve are in major focus as entrepreneurs from different fields are awakened to prosper in building startups.
As per reports, In January, industry association Nasscom and strategy consultancy Zinnov implied in a report that India may have 100 new unicorns by 2025. Lately, the growth has been phenomenal.
India has already emerged as the third-largest startup ecosystem in the world after the US and China and the pace of growth is not showing any signs of slowing down. With 31 start-ups, Bengaluru is the start-up capital of India followed by Delhi NCR (18) and Mumbai (13).
The pandemic and subsequent nationwide lockdown disrupted the emergence of startups and even established businesses. Making it more vulnerable to the two, startups have seen severe impacts from business closure, especially those in the hospitality and tourism industry.
Even then, during the worldwide economic slowdown, more than 10 Indian startups have entered the unicorn club in 2020. And since early 2021, there has been a huge surge in funding across many sectors both in volume as well as value, considering the fact of the rapid surge in the number of future unicorns and more companies going public, we hope and believe that the Indian startup ecosystem is poised to reach another level in 2022.
One of the major problematic areas for small, young, and nascent businesses is the availability of working capital. To address this pertinent issue, a framework that can mobilize funding for both the Startups and the MSME will be a great initiative in the upcoming budget. It will boost the growth of small businesses. Besides, industry players want the government to extend credit facilities to MSMEs by redefining the banking strategies and NBFCs to the same ground.
Start-ups are thus an eminent way to enhance employment creation in the economy. However, an even more significant aspect is the technological advancements they bring to the country. It increases the productivity related to certain processes, saving the limited resources that every country holds. The resources saved, can then be used elsewhere for further productivity.
How can startups help boost the Indian economy?
Start-ups are a great way to enhance employment creation in the economy. However, an even more important aspect is the technological enhancement they bring to the country. It increases the productivity related to certain processes, saving the limited resources that every country has. The resources saved can then be used elsewhere.
Eg. – companies like bus aggregators are helping save fuel subsidies which the government can utilize elsewhere. You could obviously argue that it’s a very small component, but I’m only talking about a concept and not its scale. We’ve only begun to see the start-up wave.
India needs as many as 10 million jobs a year approximately, and global data shows that it is the startups, not large enterprises that create new jobs in any country. Startups are also the nucleus of innovation and are a great way to enhance employment creation in the economy.
Startups involve dealing and merging with a new technology which generally lies at the highest end of the value addition chain to introduce innovation and the creative sphere. With more and more startups India can aspire to lead in skilled work and not just as an outsourcing destination.
They act as catalytic agents for change, which results in a chain reaction. Once an enterprise is established, the process of industrialization is set in motion.