In the long run, the startup ecosystem has the potential to become India’s growth engine

In the long run, the startup ecosystem has the potential to become India’s growth engine

In response to a legislative question, Som Parkash, Minister of State in the Ministry of Trade and Industry, stated that startups and the broader innovation ecosystem are the main drivers of growth for any nation.

Realising this, the government announced the Startup India programme on January 16, 2016, with the goal of strengthening the ecosystem for nurturing India’s startup culture, which will help to further our nation’s economic growth, encourage entrepreneurship, and provide numerous job possibilities.

Overall, the Indian startup ecosystem is expanding quickly and is expected to keep playing a significant role in the global startup landscape. The future seems promising for entrepreneurs in India because of a sizable pool of gifted engineers and experts, a ready market for technology-based goods and services, and a supportive government.

In what ways does the Indian government support the startup ecosystem?

Consistent government efforts in this area have resulted in an increase in the number of recognised startups from 442 in 2016 to 92,683 in 2023. (as on 28th February 2023).

Start-up India Seed Fund Scheme (SISFS): This programme offers funding support to new businesses so they may prove their ideas, create prototypes, test goods, and go to market.

Awards for National Startups: This initiative honours and rewards exceptional startups and ecosystem builders who support economic dynamism by fostering competition and innovation.

SCO Start-up Forum: The Shanghai Cooperation Organization (SCO) Startup Forum was created in October 2020 as a way to improve the start-up ecosystems in SCO member states.

Developing and Harnessing Innovations National Initiative (NIDHI): An all-encompassing plan has been developed for startups to treble the number of incubators and start-ups over the next five years.

What are the Growth Drivers of Indian Startups?

Huge Domestic Market: India has a vast domestic market for technology-based products and services, making it an ideal place for startups to sell their wares.

Support from the government: The Indian government has been aggressively promoting entrepreneurship through programmes like “Atma Nirbhar Bharat” and “Digital India,” supporting start-up businesses.

Increase of Sharks (Private Investment): There has been an increase in private investment in startups in India, with many venture capital firms and angel investors actively promoting and funding early-stage businesses.

Access to Technology: Internet use and technological advancements have made it possible for startups to grow swiftly, which has resulted in the emergence of multiple unicorns in the ecosystem.

E-commerce boom: The Indian e-commerce business has experienced rapid expansion in recent years, offering a ready market for new e-commerce startups.

Start-up Hubs: Bengaluru, Mumbai, and Delhi-NCR are the three largest startup hubs in India and offer an atmosphere that is favourable for startups to develop and flourish.

In particular, Bengaluru has earned the moniker “Silicon Valley of India” due to the abundance of tech firms based there.

Sector wise number of recognized Startups as on 28th February 2023
S. No. Industries No. of Recognised startups
1 Advertising 673
2 Aeronautics Aerospace & Defence 910
3 Agriculture 4653
4 AI 1580
5 Airport Operations 10
6 Analytics 640
7 Animation 93
8 AR VR (Augmented + Virtual Reality) 485
9 Architecture Interior Design 517
10 Art & Photography 321
11 Automotive 1950
12 Biotechnology 260
13 Chemicals 813
14 Computer Vision 223
15 Construction 3873
16 Dating Matrimonial 81
17 Design 629
18 Education 5962
19 Enterprise Software 1696
20 Events 365
21 Fashion 1279
22 Finance Technology 2930
23 Food & Beverages 4523
24 Green Technology 2046
25 Healthcare & Lifesciences 8691
26 House-Hold Services 633
27 Human Resources 1979
28 Indic Language Startups 269
29 Internet of Things 1428
30 IT Services 11099
31 Logistics 412
32 Marketing 1837
33 Media & Entertainment 1426
34 Nanotechnology 145
35 Non- Renewable Energy 1639
36 Other Specialty Retailers 623
37 Passenger Experience 11
38 Pets & Animals 244
39 Professional & Commercial Services 4506
40 Real Estate 810
41 Renewable Energy 2429
42 Retail 2160
43 Robotics 491
44 Safety 292
45 Security Solutions 972
46 Social Impact 576
47 Social Network 659
48 Sports 453
49 Technology Hardware 2934
50 Telecommunication & Networking 880
51 Textiles & Apparel 1362
52 Toys and Games 215
53 Transportation & Storage 1456
54 Travel & Tourism 1436
55 Waste Management 593
56 Not Specified 3511
Grand Total 92,683

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(With Inputs from careerindia)