Indias Startup Ecosystem Grows By 10% Every Year- Heres Why

Image Credit- Pixabay, Unsplash (Representational)

The Logical Indian Crew

India's Startup Ecosystem Grows By 10% Every Year- Here's Why

The number of startups in the country is rapidly increasing, with an annual growth of 10%. The number of companies and funding organisations increasing are the essential factors that helped the startup boom.

  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo

An official said on Tuesday that the number of startups in the country is growing rapidly, with 10 per cent more being added each year. Sanjeev Malhotra, CEO of the Nasscom Centre of Excellence for the internet of things (IoT) and artificial intelligence (AI), noted that most startups are on the application side, but there has also been a lot of work done in the field of software-assisted services.

"The number of startups in the country is rapidly increasing, with an annual increase of 10%. The number of companies and funding organisations increasing which are the important factors that helped the startups boom", he said. However, as per Malhotra, there is a need to create startups in core research areas, as reported by the Times of India.

The centre of excellence is the country's most comprehensive technology and innovation ecosystem. According to Malhotra, India boasts the world's third-largest startup ecosystem. The number of such businesses has increased dramatically during the last six years, as per the Economic Survey 2021-22.

According to the Economic Survey 2021-22, the number of new recognised startups has surged dramatically from 733 in 2016-17 to over 14,000 in 2021-22. As a result, India has notched the third rank in terms of the largest startup ecosystem after the United States and China.

Possible Reason For Startups Mushrooming In India

Because of near-zero interest rates in the US and some European countries, the global banking sector has seen a flood of liquidity over the last decade. It prompted international investors to seek more robust growth rates in other economies, such as India.

But there can be another reason too. Livemint quoted Sandeep Naik, MD and head of India and South-east Asia at General Atlantic and Vani Kola, managing partner at Kalaari Capital, explaining the same.

According to Naik, "It's just been three to four years since India's digital ecosystem exploded, thanks to Jio's efforts to make broadband and smartphones more affordable and available to a wider audience, paving the way for easy digital transaction."
"This isn't some random occurrence," Vani Kola explained.

She claims that the investment boom expected in 2021 has been in the making for years, as VC (venture capital) firms have been steadily investing in developing a portfolio of Indian startups over the previous 15 years.

According to an October 2020 research issued by TiE- Delhi, non-profit supporting entrepreneurship, and Zinnov, a management and strategy consultant, India is predicted to house 62,000 startups by 2025, including 100 unicorns (privately-owned startups with a valuation of over $1 billion).

Also Read: Bengaluru Woman Campaigns For Making Public Spitting Punishable

Contributors Suggest Correction
Writer : Shiva Chaudhary
,
Editor : Snehadri Sarkar
,
Creatives : Shiva Chaudhary

Must Reads