Why the Government is Aggressively Trying to Create a Favourable Startup Ecosystem
India has grown to be among the top startup communities across the globe. The startup scene in India has truly grown with years.
Supported by an ever-increasing number of angels, funds, accelerators, and incubators, it is fairly easy to estimate the exponential growth rate of the Indian ecosystem.
The Indian ecosystem has not just grown, but evolved with time. Even though the metro cities continue to take the lead the startup community of the country, Tier-II cities are not staying out of the race either. Availability of talent, ideas, state government initiatives, investors, and infrastructure has been lending a hand in this direction.
These cities are soon turning into hubs of FinTech, AgriTech, Logistics, and SaaS, adding value to the ecosystem as a whole.
The government has been putting in efforts to build the perfect gateway for successful Indian startups.
(Source: Economic Times)
Government Initiatives for Indian Startups – Their Impact
Indian Government has been floating various sector specific and sector-agnostic schemes for startups in India. Some of these initiatives have truly served their purpose and sped things up for many startups.
The initiatives that have helped boost the startup ecosystem in India are Startup India, Standup India to the vision of a Digital India, better taxation policies, easier starting up methods, and better access to loans.
How many of these recognized startups continued to operate and how many dissolved, was not recorded here.
(Source: Quartz Media)
Because of this initiative, new startups and entrepreneurs do not have to rush around to solve their queries and problems. The Startup India Hub has been a one-stop-shop for all startups.
Government Initiatives for Indian Startups – Reason for Failure
Despite the talent and the zest to start something new, a lot of startups fail just as soon as they take off because the country lacks the support and the environment to help these startups grow or even survive the hardships of the initial years.
Despite the decent-looking numbers of Startup India, the overall result has been less than impressive. According to a report by DIPP, the percentage of recognized startups to have received tax benefits is really low, as these startups have been incorporated post 1st April 2016.
Lack of bureaucratic professionalism can be considered as the main reason for the failure of the Startup India Program. The old school methods of operating despite the promise of digital processes makes the entire process extremely time-consuming for a budding entrepreneur.
Also, the never-ending criteria list that has been set up by the government acts as a roadblock in the process of starting up.
Last, but not the least, inefficient fund deployment is one of the major reasons for low success rate of the program.
Solution-Driven Indian Startups
Startups and their innovation are armed with the technology to solve the country’s infrastructural, administrative, and policing problems.
Technological advances have made it possible to predict consumer behavior, traffic, drought patterns, and the possibility to being able to use available data extensively. Startups that are focused on bringing improvements in the health sector are working towards a better infrastructure, better reach across the country, and initiatives in preventive care.
There are a number of startups in India that are taking the initiative to tackle a variety of problems and shortcomings in India, like, childhood education, availability of digital services, biomedical products and services, and solar energy usage, to name a few.
Indian Startups – Possible Future Impact
Growth of the startup ecosystem is going to boost the Indian economy in the coming years. If the growth pattern of startups in India continues at the current pace, it is expected to generate almost 2.5 lakhs employment opportunities 5 years down the line. Advances in the fields of education, health, agriculture, beauty, and fitness have helped to create job opportunities in the unorganized sections of the country.
Indian Startups – The Final Take
2018 has brought along enthusiasm and innovative ideas in the Indian ecosystem. With the right support, many startups have the potential to take their game up to the next level in 2018.
The Indian startup ecosystem has been maturing to become stronger and more valuable. Even though the entrepreneurs are going through a phase filled with positives as well as negatives, they have been producing truly innovative products and services for the Indian market.
Continuing innovation and support will definitely lead the Indian startup ecosystem to mark its territory among innovations across all countries.