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Startup Growth Scenario in India

In this article we will discuss Startup Growth Scenario in India

In this article, we will discuss Startup Growth Scenario in India. So, let’s get started.

Startup Growth Scenario in India

  • India is a hotspot for startups. In 2021 alone, Indian startups have raised more than $23 billion, spread over 1,000+ deals, with 33 startups entering the coveted unicorn club. So far, the year 2022 has added 13 more startups to the unicorn club.
  • After the United States (US) and China, India has emerged as the world’s third-largest startup ecosystem
  • Currently, India is witnessing rapid growth in the number of startups. According to the India Venture Capital Report 2021 published by Bain and Company, the number of cumulative start-ups has grown at a CAGR of 17% since 2012 and crossed 1,12,000.

Booming of India’s Startup Ecosystem

  • Recognition of Significance of Startups: India has recognized the need to develop innovation and incubation centers for its large student community to foster innovation and entrepreneurial mindset through academic institutions.
  • A rising number of incubators and a steady inclination of young executives towards starting their own ventures is also propelling the entrepreneurship and early-stage startup ecosystem in India.
  • Availability of Potential: A study on tech startups of 2021 revealed that a sizable number of edtech founders are young graduates from IITs and premier engineering colleges or those who worked for global consulting firms.
  • This availability of young talent with the right blend of passion, expertise, and mindset of Indian entrepreneurs puts India’s early-stage startup ecosystem at an advantage in cashing on the opportunities of a booming market.
  • Startup Specific Initiatives: The Government of India has been playing a crucial role in facilitating the growth of early-stage startups through the implementation of progressive policies and creating of relevant infrastructure.
  • Under the Startup India Initiative launched in 2016, the government has endeavored to simplify complex legal, financial and knowledge requirements in an effort to encourage the participation of early-stage potential startups.
  • Reforms such as opening up sectors like space-tech for private participation, tax holidays for startups fulfilling certain eligibility criteria and creation of state-run incubators are lowering the odds of establishing successful startups and helping them grow.
  • Startup-Corporate Collaborations: Established corporates who lack innovation capacity and agility, and nimble early-stage startups who lack cash for growth and networks for market access, provide a unique and scalable platform for such collaborations and multiplied wealth creation.
  • Various corporate-startup partnership programmes have been driving innovation and accelerating the growth of early startups in India – Microsoft India has accelerated more than 4,000 startups, while Tata Motors is engaged with half a dozen startups and exploring partnerships with 20 more.
  • Risk-Taking Capabilities: There has been an extremely encouraging shift towards engineering and product start-ups. The strength of the Indian start-up ecosystem reflects the most in the increasing risk-taking ability and ambitions of young Indians.
  • This ability of the young generation to take risks and move faster without fear has become India’s biggest asset today.
  • The fact that Indian startups are becoming global entities by creating products and solutions for world markets is a testament to this approach.

By competitiveworld27

Competitive World is your online guide for competitive exam preparation

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