As we all know, Startup India is a much appreciated, much needed and an innovative initiative of the Government of India for encouraging people for startup in India and thus to invite them in country’s main economy stream in order to form better and strong economy. The campaign is equally ambitious as Make In India program. The vision behind Startup India is to drive sustainable economic growth and accelerate employment opportunities. Recently I got a chance to meet a visionary industry expert and entrepreneur Mr. Hardik Bhatt who shared his important views and opinion about Startup India campaign and also presented some statistics based on his deep research and studies. In following article, I have written about all discussion we had during our conversation.
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Experts evaluate it as a gentle yet solid Government effort which has potential to accelerate speed of economic growth in to the country. Government has already announced action plans and sensational movement have started being visible in different segments of the market to meet objective of the campaign. Currently the core focused segments in Startup India are technology & digitalization in the area of agriculture, manufacturing, social sectors, education & healthcare sectors.
In order to understand the importance of Startup India, it’s important to go through some facts regarding how startups are important to the country’s economy.
There is also a hidden agenda which may give fruits in upcoming years and that is – to create skilled, well experienced and quality entrepreneurs who can bare country’s economic growth on their own shoulders and can leave a deep impact of country’s leading business capabilities and potentials in overseas market at international level.
The much awaited unveiling of Startup India by Prime Minister of India has brought lots of positively among the entrepreneurs in India. We are elated by the fact that India has the third largest number of start-ups globally. IESA (Indian Electronics and Semiconductor Association) applauds the government on being a facilitator to build the startup nation. With the Government’s support, a startup can be built in a day which will definitely motivate many young entrepreneurs to turn ideas into action thereby increasing the jobs in India as well, says M N Vidyashankar, President, IESA.
How startup in India contributing into the economy?
Startups are set to play a big role in the growth of economy as boosters and the huge number of employment subject to better handholding by Government campaigns to facilitating startups through the market regulator Securities and Exchange Board of India (SEBI) has also relaxed some rules to facilitate the flow of funds from the market to the startups.
Related Article: OMG!! Haven’t Registered Your Business with Startup India Yet!
India ranks fourth in no of startups globally – Nasscom
Developed nations are now looking towards fast growing and emerging nations such as India to gain maximum from the huge untapped potential markets. In the recent years, different countries are taking different initiatives to link up their businesses with the Indian startups in almost all sectors including defense. Such joint venture can attract the huge foreign fund which can boost the country’s growth.
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How important they are for country’s employment status?
With the help of such collaboration, Indian IT and BPO sectors have recorded 12-14% more revenue generation for the current fiscal year compared to last year. Similarly educational tech startups are new hot bees where various investors are taking personal interest since it is anticipated that the complete educational system will be digitized in the near future. Also startups focused for analytics, healthcare, beauty and fitness, biotechnology, Food industries and other area are also attracting more investments and increasing job opportunities.
In simple words, India is a country rich in natural resources with qualified and skilled labor which is easily available at affordable rate compared to China and Japan. Expert predicts as a result from ‘Make In India’ campaign, India is soon becoming the preferred manufacturing destination of most investors across the globe. It is actually Indian Government’s plan to harness this demand and boost the Indian economy.
But what problems the Indian startups are facing currently?
During our discussion, I asked Mr. Bhatt about various problems faced by startups in India. He explained, India currently lacks availability of incubation (startup incubators in India. What are incubators?) facilities across various parts of the country. Incubation facilities typically include physical infrastructure, provision of mentorship support, access to networks, access to market, etc. Of all these features, physical infrastructure entails large capital investments which can generally be facilitated by the Government.
How Startup India will encourage new startup companies?
Startup India or Make in India is not just a campaign only. Instead, it should be seen as a genuine attempt to boost investor’s confidence and opportunity of investment in Indian entrepreneurial ecosystem. Laws are being amended to support campaigns like this. Recently they amended land acquisition law to support industries and GST bill is in pipeline. Ministries are playing active roles like never before. Government has also announced single window clearance and VISA on arrival systems to attract overseas players to come and invest in the country. Government is also constantly taking care of new startups benefited by industry-friendly regulations and laws. Tax reforms are good example of such moves. The Government has already started to facilitate startup accelerators in India as a part of this move.
Is the current market is business friendly?
India’s large demographics availability is itself a huge opportunity for any business segment trying to establish a dominating position in the global market. Hence any multinational company, who wants to become a trend setter in upcoming time, has to have presence in India. So, startups and entrepreneurs in India have a huge home advantage and opportunities in this scenario.
What are scopes and opportunities for country’s youth?
India’s current youth population is expected to serve for the country at least for the next 3 to 4 decades. India will become the world’s youngest country by year 2020, with an average age of 29 years, and account for around 28% of the world’s workforce. The country’s population pyramid is expected to across the 15–64 age brackets over the next decade. India will be experiencing a period of “demographic bonus,” where the growth rate of the working age population would exceed that of the total population, which is certainly an added advantage. Hence there is a huge opportunity to young skill owners and young innovators. Some recent trends suggest that since decade, Indian youth have inclined toward startup and business rather than doing jobs. So Startup India will be proved as a masterstroke in upcoming years.
What should be the strategy of youth?
Search for funding to incubate the idea, Tax exemption to availed resources and infrastructure, Fast & Hassle free procedures to establish or parting with other can be the path or strategy of youth. As stated in the official website, the main objective of “Make in India” is to encourage investment and foster innovation in the country; also in order to achieve goals of Startup India, the Government has simplified the business registration process as well as the rules that govern the entire process.
As a result of this, entrepreneurs are able to start a company in India using eBiz portal 24/7. (Please refer this document to get detailed idea about eBiz program) Even, simple licensing application can be done through self-certification or third party certification system. With the integrated online portal and less paperwork system, entrepreneurs do not have to worry about the administration burden and are able to focus more on running the companies. In addition to an easier registration process, entrepreneurs have more options to invest in India as more sectors are included in the “Make in India” campaign. Also the Government has already started creating SEZs and corridors like industrial corridors and economic corridors across the country. Establishing your company in a correct corridor will enhance the business development environment and growth opportunities as well.
E-Commerce, healthcare, IT, telecom and education sectors
Indian e-commerce market will cross 150 billion USD mark by 2020 as we look in to the current growth rate. The potentiality in the market and according to expert’s prediction about online retail market will cover 29% market share by 2020. Hence there is a huge scope for online service provider from different industries and retailer of all sectors to grow in the Indian market in next 5 or 10 years. IT sector is already dominating international market. A vast region is still unexplored for Telecom and education sectors, which is again a huge advantage with tremendous business opportunities. Healthcare sector is also gaining speed as far as business opportunities are concerned. (You can read our article about ‘invest in healthcare sector’ for detailed information of healthcare sector)
What are the other sectors those can be considered?
Digitalization is yet to be expanded in many places, specially required to identify a way to reach Indian rural market to fulfill their day to day retail demand and services. As of today Government has already provided G2C services to the Indian rural market through internet connectivity and other equipments with their nationwide e-Governance Projects.
Different services from different sectors in the area of e-Educations, e-Commerce, e-Health, e-Banking, e-Documentation will grow subject to market trends and high speed internet availability in such areas.
How Startup India can beneficiate the country’s GDP?
Experts strongly believe that MSME (refer this website to know about where to and how to register a startup in India or if you want registering a startup in India) contribution to India’s GDP can be raised to 24%, which is almost 3 times more than current GDP 8%. This may impact the market trends and scope of growth positively in next few years.
Will it improve county’s reputation at international level?
Startup India campaign has been launched to promote entrepreneurship. I will not only increase jobs but also increase opportunity for migrants (foreigner) who wish to come to India and work/live here. The campaign will also help to improve entrepreneurship quality which will indirectly help to revive country’s business oriented reputation on international platform.
Watch this interesting video on Startup India
The article describes how the Government is encouraging people to start doing business and what steps are being taken for it which is actually good for bright future of India startup industry. And this will certainly boost Indian economy as well as GDP in upcoming decade. I would love to hear from you. Please do share your feedback in comments. Thank You.
Have a wonderful day!!
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