India, a country which is on a path of development ever since it got independence from the British. It is at a great pace but have you ever wondered how India was able to manage such an astonishing turnaround? Well, the answer lies in front of you, the youth of the country. As compared to any other country, India has great potential in its youth as compared to its dependent population with nearly 62 per cent of its total population lying in the working-age group.
Moreover, 54 per cent of the total population belongs to the age group of below 25, which means India has a more independent population as compared to other countries which provide an edge against other countries. With this great number of the working population, we as a country have the advantage of utilising the skill and ability of the youth to drive the nation to development with productive output and innovation.
The past shows that ever since India got independence, it has always been an entrepreneurially driven nation. Its growth has always been facilitated by the entrepreneurs of the nation. However, we all know how fast time changes and in a dynamic country like India, things change very fast. A decade and a half ago, the country started to witness a shift to a new landscape- the shift to an economy supported by start-ups, investment in the nation from across the globe and the rising infrastructural development.
India has always considered start-ups very important for its economy as they are helpful in many ways. Whether creating employment or increasing foreign investment in the country, start-ups have always been very beneficial. The growth of start-ups in the country has been very commendable and has provided the country with many development prospects including a rise in foreign investment and a decrease in the problem of unemployment in the nation, which generally is a huge threat to the whole nation.
What does the picture look like right now?
In 2021 alone, the start-ups in India have so far raised nearly $20 billion in funding. The number of start-ups has increased this year too by great numbers and have achieved the status of unicorns.
The economy led by the start-ups have increased the number of employment prospects in the nation, created new business opportunities, rose the investment prospects and has increased the tech-centric approach of the nation. A lot of jobs have been created in recent years, in various sectors and of various types. The flow of investment has been shifted from traditional industries into the technology-based sector and has been very instrumental for the entrepreneurs of the nation. India’s own technological growth in recent years has been very commendable too.
We have been through a lot and the journey of development was fast paced but with many problems. India witnessed its first private company achieving the unicorn status in the year 2011 and in just a decade, we have now 50 plus strong unicorn industries in the country. This growth has been possible only due to the rising start-ups in the nation which further led to foreign investment and infrastructural development. With this growth, Indi has surely become an epicentre of entrepreneurship with new start-ups launching literally every day.
A developed start-up ecosystem, with a large number of entrepreneurs and rising technological upgradation, paves the way for innovation and expansion at the global levels. India is a developing nation and faces international competition quite every day. Therefore, having a strong start-up led economy internationally will be very beneficial for the nation, providing it with an edge to compete with the developed and developing nations across the world, with its biggest competitor being China.
Ever since India got its independence seven and a half decades ago, the country’s economy has constantly diversified and grown to leave the dependency on only the agriculture sector in order to become a technologically upgraded powerhouse. Entrepreneurs are constantly contributing to create world-class goods and services in order to solve real-time challenges. The Indian start-ups have always been interested in creating global synergies and partnerships and have succeeded in it in the recent years, thereby spreading the start-up’s ecosystem across the world and making a global market for their products.
We all know how hard it was for businesses across the nation to survive during the pandemic, right? With global consumer demand being zero, prevailing lockdowns, closing of international borders and imposing restrictions, it was a tough time for all the industries. However, we have some news which might change your thoughts. Even amid the COVID-19 pandemic, the start-ups in India continued to grow and evolve in order to provide indigenous and tech-based growth to the country. The start-ups provided tech-based solutions to combat various challenges ranging from testing kits and ventilators to remote monitoring, which were very essential during the tough time of the COVID-19 pandemic.
Moreover, the start-ups further provided for innovations in supply chain management, logistics and education prospects. One of the most important technological progress in the country during the time of pandemic was the shift to online education, as schools and institutes were closed and there was no other way out. It resulted in a great success as it facilitated the education of children even during tough times. Start-ups in India facilitated the development of solutions that were adopted not just domestically but across the globe. This led to the country establishing a counter stone for tech and innovation across the world.
What led to this spurring growth in India?
One of the most important factors which contributed to this growth of the tech-based start-ups is the steady growth of the Indian IT sector in the nation. The IT sector started to witness growth at the start of the 2000s and has not looked back ever since then. The growth of these start-ups has been very beneficial in the country. A large pool of skilled workforce, rise in the employment opportunities in the nation, facilitating job creation, increasing the consumable income of the people, raising capital inflows from around the globe and what not. All this shows how beneficial the growth of start-ups in the nation is.
One another important factor leading to the rise in the number of start-ups in the nation is the low amount of capital requirement. Businesses on one hand require huge funds in order to set up which are not quite feasible for everyone. However, start-ups on the other hand require a lot less amount of funds as compared to the big businesses and therefore even during these tough times, people are able to fund their start-ups.
Moreover, the government has constantly been supporting the start-ups in the nation through its various schemes, such as the Atmanirbhar Bharat scheme. It widely promotes the setting up of new start-ups as it provides them with a lot of benefits, helping them to save money.
India has a huge share of the young generation, as discussed earlier. The ability of the young generation to take risks, move fast and disrupt things without worrying has been the biggest asset of our nation. It should be kept in mind that the Indian start-ups have been playing a very major role in the global markets and therefore have made their strong bases in other nations too. All of this has led to a rise in the number of start-ups every day and therefore the direct benefit of it is acquired by the developing economy of the nation.