How India’s Entrepreneurial Ecosystem is Flourishing to New Heights?
India’s Entrepreneurial Ecosystem
India’s Entrepreneurial Ecosystem is Flourishing to New Heights
Entrepreneurial Ecosystem, Every day is a new chapter for India as it is now one of the fastest-growing economies in the world. Like Indian engineers and doctors left an everlasting impact of excellence in the world, it’s now the legacy of Indian entrepreneurs that is scattering magnificence everywhere. The last decade has been a game-changing phase for the Indian entrepreneurial ecosystem and we are about to discuss the same. Today we will discuss how India’s entrepreneurial ecosystem is flourishing to new heights and what positive impact it brings to our economy as well.
In 2020, India recorded more than 55,000 startups and became the third-largest startup ecosystem in the world. These startups have generated more than 1.5 million USD in job opportunities for the youth. It is also estimated that by 2025-26 India will have more than one lakh startups creating job opportunities worth 3.5 million USD. Also as per the recent studies of 2022, India has about 61400 registered companies. There is no doubt in these figures multiplying by manifolds as recent studies have shown that India will witness 4 to 5 % growth in GDP over the next five years. Analyzing the figures in more detail in 2022 startups added over two lakhs employment opportunities as compared to FY2021 which were around 1.9 lakhs. The domains which saw the most numbers of startups came from Fintech, logistics, IoT, SaaS, and Software Development amongst others.
Manifesting a Bright Future of India
Startups are an immense source of innovation, creativity, development, and disruption as they are the change builders. They are the grounds for experimentation and adaptation to ongoing trends. These startups also collaborate with various academic institutions of the country and empower the youth of our country about the power of innovations. Many of them also work particularly for the empowerment of socially excluded groups and marginalized groups of society.
By 2030 India will take the lead and surpass countries like the US and China to become the 3rd largest consumer market with an expected consumer spending of USD 6 trillion. Startups create numerous direct and indirect employments through their logistics, supply chains, and service providers. Moreover, Indian startups are an excellent domain for venture capitalists to relish multiple returns in the longer run. As the present Indian government is a strong believer and supporter of “Atmanirbhar Bharat”, our startups have significantly contributed to the nation’s economic growth.
Today, the buzz is all about tech-based business models because technology has revolutionized the startup space in so many ways. They use technology to create solutions that are cost-effective as well as accessible to all. As entrepreneurs and startups always have the inquisitiveness to develop software that deals with high-tech-driven perspectives, India has splurged itself in Research and Development. The R&D workforce proactively seeks innovative ways to put new ideas into practicality. Hence, startups have opened the doors of R&D for the youth in all possible directions.
Many small businesses also immensely benefited from these startups because most of the bigger players are vocal about outsourcing their job so they can focus on their core business. Most international firms outsource talent to India to gain domestic expertise in the market which brings better growth opportunities and increased cash flow as well. When our startups will start producing the goods which were earlier exported from other countries at higher export rates, it will significantly limit the amount of money moving to cross borders. This is beneficial for the Indian economy as more cash flow goes into the domestic market. If our startups can produce their services in surplus, our country will have the potential to start exporting these goods and services to different countries which will not only accelerate the amount of foreign currency coming into India but will also strengthen the alliances with other countries.
In conclusion, we can say that as India is tracing an exemplary path of growth and startups are the fuel of this journey. They nurture value creation across diverse domains and have the potential to take the country to newer heights of opulence. However, it is also important for already established business tycoons and the government to support the startup wave and encourage youth to leap into entrepreneurship. This demands stronger collaborations and coordination with both the public and private sectors of the economy.