Startup Ecosystem In India: Post-COVID era, India is expecting a V-shaped recovery for its economy. Not only that, the havoc created by the pandemic in the Indian Economy needs to be rectified. To revive we must create at least 10 million jobs annually. Now it is not the existing MNCs and big companies that can achieve this target alone.
In fact, a major role has to be played by young and next-gen entrepreneurs. That’s where the importance of startups comes in. In times like this, startups bring a ray of hope for the economic prosperity and Atma Nirbhar mission of the country.
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Startup Ecosystem In India
How startups are contributing to Atma Nirbhar Bharat?
There’s no doubt that startups are the economic drivers of the economy. Prime Minister’s call for Atma Nirbhar Bharat was a clear message. We need to look for local options rather than imports and foreign goods. The encouragement for local industries and entrepreneurs comes from our own success stories. Here are two such examples:
- As COVID 19 spread globally, there was a shortage of masks and hand sanitisers. Women from Chhattisgarh recognized this problem and made a brand of herbal hand sanitiser, “Madhukam”. Madhukam was made under the guidance of Mr Samarth Jain, a scientist, consultant, and researcher. Made from the traditional Mahua Brew, the innovation not only reduced the dependency on big brands but also generated employment, contributed to women empowerment, and increased confidence level. Above all, it solved a social problem.
- Another example is that of space technology. Bellatrix Aerospace, a Bengaluru-based startup has come up with a solution for the cost and weight of fuel in space technology. They have developed Microwave Plasma Thrusters(MPT), an indigenous electric propulsion system for satellites which is an eco-friendly and cleaner alternative for existing propulsions.
These examples substantiate the fact that even though micro level, but the startups in India are bringing significant changes in the society. No surprise that today startups are expected to serve as the growth engine for the economy.
Let’s dive into some more facts/ details on how startups can be an asset to the Indian Economy.
The Indian Startup Ecosystem With around 1.3 billion population, India is called the “poster child of emerging markets”. It has a large consumer base, half of which is below 25 years of age. The youth is ambitious and has material goals. The market demand is expected to only rise. This gives a demographic advantage for running a startup in a country like India. The government recognizes startups as an important engine for growth and employment generation. The flagship event “Startup India” was initiated in 2016 “to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities.”
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The big small impact
All the big companies and businesses start as small. Today, there are several small startups in India, but due to the ripple effect they create, the impact they have on the Indian economy collectively is huge.
Job creation
One of the biggest advantages of startups is job creation, which means more employment and thus, a better economy. Post covid era, startups will be crucial not only to gain back all jobs lost during the pandemic but also to create new ones.
Boost economy with revolutionary technology
Startups revolve around innovation, They cater to a variety of problems including environmental and sustainability. Also, as they cater to the new needs of the young consumer base, new industries will be created over time. This also means better living standards for people.
Wealth Creation
Lastly, Startups serve as the money-making engines, not only for owners but also for investors and employees. Besides that they contribute to GDP, thus contributing to the overall economic prosperity of the nation.
Startup Ecosystem In India: Frequently Asked Questions (FAQs)
- What is the purpose of a startup?
Startups are businesses established with the aim of solving an existing social problem.
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- Which areas are startup hubs in India?
In India, Bengaluru, Mumbai, NCR, and various small cities are the startup hubs.
- How are startups useful for global growth?
Startups bring innovation and make a conducive environment for research and development.
– Article Edited by Sara Gogna (Connect)