Unfolding the startup revolution in india

STARTUP, The most happening thing in Indian society. in a country with population of 135.26 crore people, even niche products have very large market potential. ever since economic liberalization, India has a very dynamic market with an annual GDP growth rate of 6.8%, India is one of the fastest-growing economies in the world. This creates a lot of market for startups.

With nearly $20 billion of capital inflows and about 100,000 people India has become the third-largest startup ecosystem in the world after United States and China

India’s startup ecosystem is not a recent phenomenon. The seeds of this ecosystem were sown a few Decades back.

The Colonial era saw entrepreneurship restricted by social, cultural and religious rigidities. But the popularity of Swadeshi Campaign has played a vital role in escalating entrepreneurship among indians.The emergence of the managing agency system during world war played a significant role in growth of entrepreneurship. Unsupportive political situations and harsh taxes have restricted the surge of entrepreneurship. This remained to be the draw back for the growth of Indian entrepreneurship before independence.

Let us take a look at few indian companies before independence;

· Brittania Biscuits(1918)

· Haldiram’s(1937)

· Godrej(1897) :- Godrej played a very important role during Swadeshi Campaign.

Independence was marked by significant shift in the entrepreneurial sector. With the new found freedom, entrepreneurs gained the confidence and belief to pursue their entrepreneurial dreams. Need of employment and regional development paved way for the startups.

We could probably say that a major turning point would have been in the 1980s. This was the time when Rajiv Gandhi, the then Prime Minister, introduced the liberalization of the computer industry and during the 1980s that N.A.S.S.C.O.M. was also launched.

This really led to a growth of the digital industry in India. N.A.S.S.C.O.M is dedicated in expanding India's role in the IT services by creating a conducive business environment and simplifying policies.

Through the 80s, a handful of pioneering IT service companies such as TCS, Infosys and Wipro placed india firmly on the global economic map. These companies invested in technology and leveraged the country’s young, english-speaking workforce to provide cost-effective technology services to clients across the globe.

One more year to bear in mind is 2008, the Great Recession. This brought many economies to their knees and companies all over the world started dismissing their employees. There was a constant fear among employees all over the world for job security.

This had a major impact on IT Professionals in India. Many started looking for newer alternatives and many who were fired from their jobs headed towards the startups. Many famous startups in India like Policybazaar, Zomato, Flipkart, Fresh Desk ,etc were founded during this period.

After this there has been no stopping for startups ,in India. It has continued to grow at a large rate. The accelerated funding coupled with the innovative and incrementally competent growth of startups like Zomato,Flipkart,Snapdeal,etc and their potential to grow as world class companies has set benchmark and hope for many aspiring entrepreneurs. Many policies have been implemented by Indian government to promote startups.

Cut to the present and India has seen a dramatic acceleration in both the quantum and the diversity of startups. Over the last 10 years, India has become one of the top Three startup ecosystems in the world.

Many startups have recently filed for IPOs worth billions and stock market has spiked up as never before .As of 14 January, India had 83 Unicorns with a total valuation of $277.77 billion, according to the survey. most of these unicorns are in the services sector, which contributes over 50% to India’s GDP.

The survey noted that the government recognised over 14,000 new startups in 2021-22 against 733 in 2016-17. With this, the total number of recognised startups in the country surpassed 61,400. During 2021, 555 districts had at least one new startup against 121 districts in 2016-17, as per the Economic Survey. Just look at the numbers, startups are literally accelerating. They have a massive impact on Indian economy.

Startups create jobs which means more employment and more employment means an improved economy.

India is seeing a pool of oppurtunities and heading towards a economical super power.Youth make the large part of India and this has been a boon for the country’s economical growth. Government policies and elite institutes of India boost the aspirations of budding youth. India has a long way to go.

By :- M Vijay

21MM02011