“Start Up Ecosystem In India” Starting Up, Fanning Out

India: Global power house of creativity and technology

• INDIA’S EMERGENCE AS a centre of technological and entrepreneurial innovation is a cause for celebration.
• From being ranked in the third quartile among innovative nations a little over a decade ago, the country’s innovation landscape has experienced are markable transformation.
• India has emerged as a global power house of creativity and technology.

India’s thriving start-up ecosystem

• This change is evident in India’s thriving start-up ecosystem. The country has emerged as the third-largest start-up landscape globally, with the number of tech start-ups projected to grow from 68,000 in 2023 to 1,80,000 by 2030.
• As of January this year, India boasted 111 unicorn start-ups with a combined valuation of over $350 billion, demonstrating the economy’s ability to nurture high-value companies across various sectors.
• Notably, this start-up revolution is no longer limited to major cities. There is a growing trend of start-up activity in Tier-2 and Tier-3 cities, signaling the democratization of entrepreneurship.

Five key initiatives have contributed to India’s improved standing in the Global Innovation Index.

• First, India’s rise is fueled by its robust in novation ecosystem, characterised by a vast knowledge capital, a dynamic startup landscape, and collaborative efforts between public and private research entities.
• The Department of Science and Technology’s NIDHI (National Initiative for Developing and Harnessing Innovations ) programme has established a network of technology business incubators and science and technology entrepreneur’s parks across the country, bringing together public institutions and private start-Ups to commercialise innovation.
• Second, various government-led initiatives, including those by the Departments of Science and Technology and Biotechnology as well as the Atal Innovation Mission, have played crucial roles in enriching the national innovation environment.
• Third, policy-driven innovation, spear headed by NITI Aayog, has optimized efforts in strategic sectors such as electric vehicles, biotechnology, nanotechnology, space, and alternative energy.
• Fourth, India has demonstrated notable progress in key indicators like domestic industry diversification, patent origination and exports of cultural and creative services.
• Finally, among lower-middle-income countries, India stands out for having the highest innovation quality.

 

Other crucial initiatives:

• The NITI Aayog has been working closely with the Ministry of Railways to fast-track the redevelopment of railway stations across India through public-private partnerships.
• Similarly, the pharmaceutical industry in India has adopted a new business model in which firms under take contract manufacturing and clinical trials for multinational companies.
• This allows Indian firms to participate in global pharmaceutical innovation processes.
• The Atal Innovation Mission (AIM) did what previous initiatives could not—fostering innovation at the grass roots level.
• It has established over 4,880 operational Atal Tinkering Labs in more than 650 districts, providing access to innovative tools to over two million students.
• t has also selected 102 universities, Institutions and private players to establish Atal Incubation Centres with over 50 operational centres nurturing more than 900 startups.
• It has also organised over 24 Atal New India Challenges in partnership with five Union ministries and departments, receiving 950 applications, of which 52 have been selected for grant-in-aid and hand-holding.

India’s performance:

• Today, India is the top innovative lower middle-income economy in the world, ranking first among the 37 lower-middle-income group economies and first among the 10 economies in Central and Southern Asia.
• From being ranked 81 in 2015 it has reached the 40^th position in the world today. More significantly, India ranks:
• fifth in ICT services exports,
• sixth in venture capital received,
• eleventh in graduates in science and engineering, and
• thirteenth in global corporate R&D investors.

The impact of these initiatives:

• The impact of these initiatives extends beyond statistics. A culture of innovation is now seen even at the school level.
• Importantly, this initiative is not restricted to Tier 1 cities but spans the entire country, encompassing virtually all top-notch sectors of the economy.
• All this means millions of young innovators and entrepreneurs in the making. The cascade effect will be tremendous, propelling India’s innovation ecosystem to new heights.

What is ‘Unicorn’

• A “unicorn” is a privately-owned startup business worth more than $1 billion.
• In venture capital companies, the term unicorn is often used.
• The first person to use the word was Aileen Lee, who works in venture capital.

• Decacorn: a current valuation of over USD 10 billion.
• Unicorns: Start-ups founded after the year 2000 with a valuation of USD 1 billion.
• Gazelles: Start-ups that are most likely to go Unicorn in the next three years.
• Cheetahs: Start-ups that could go Unicorn in the next five years

The Startup India Initiative:

• Launched on 16th January, 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers.
• These programs are managed by a dedicated Startup India Team, which reports to The Department for Promotion of Industry and Internal Trade (DPIIT)