Prime Minister Narendra Modi has announced that India would observe January 16th every year as the National Start-Up Day. It was on this day in 2016, the Government of India had luanched the Start-Up India initiative, comprising a 19 point action plan for promoting and supporting entrepreneurship spirit in the country.
India’s achievements in the Start-Up field are indeed noteworthy. It has emerged as the third largest Start-Up ecosystem in the world after the US and China.
There are nearly 60,000 recognized Start-Ups in India, spread across 623 districts from 30 States and 7 Union Territories.
India today has 82 Unicorns – i.e. a privately owned Start-Up company valued at over US $ 1 billion – out of which 42 entered the Unicorns list in 2021 alone. India’s Unicorns are currently worth more than $168 bn.
The success of Start-Up ecosystem in India is a product of the innate entrepreneurial spirit of the Indian youth, supportive government policies as well as conducive external environment.
While the Covid 19 pandemic disrupted lives in many ways, it has also been the push that many start-ups needed to propel their businesses. The global pandemic resulted in a digital transformation and adoption of technology at a societal level.
The Chinese Government cracking down on its own technology driven companies and placing government nominees on the Boards of the Unicorns under the scanner, has prompted much of venture capital funds seeking alternative investment destination in India.
The initial focus of Start-ups in India was consumer centric such as making services like booking a cab or a hotel room more convenient and affordable. The young entrepreneurs here were merely replicating successful business models from Silicon Valley, with an Indian twist.
But in recent years, the Start-Ups in India are increasingly focusing more on B2B – Business To Business – space, which is a welcome sign. NASSCOM has identified EduTech, Logistics, Automotive, FinTech and HelathTech as some of the emerging fields where India is making a mark.
Looking ahead, Indian Start-Ups have to brace up for future challenges. The easy flow of money may not last forever. China may reverse its policy any time. The solution lies in establishing sustainable business models, which can be scaled up to benefit the economy in a real sense.
Despite the progress made, India’s Start-Up ecosystem still has miles to go before catching up with countries like USA, China and Israel, which are now reaping the dividend of the investments they made in intellectual capital, creating a knowledge based economy.
Nevertheless, the country is on the right track. Happy Start-Up Day to all the entrepreneurs of the country.
MD/BPost/IX
ON THIS DAY 