Startup India Innovation Week
- 17 Jan 2023
- 6 min read
Why in News?
Recently, on the occasion of National Startup Day (16th January), Startup India Innovation week culminated along with National Start up Awards 2022.
- National Startup Awards 2022 given by Ministry of Commerce and Industry acknowledges startups and enablers who have been instrumental in revolutionizing the development story of India.
- Startup India organized industry-focused webinars on the topic "Championing the billion-dollar dream".
What is the Status of Startups in India?
- The Start-up ecosystem in India ranks third after that of the United States (US) and China.
- According to the India Venture Capital Report 2021 published by Bain and Company, the number of cumulative start-ups has grown at a Compound Annual Growth Rate (CAGR) of 17% since 2012.
- Growth Drivers:
- Large Domestic Market: India has a large domestic market for technology-based products and services, providing a ready market for startups to sell their products and services.
- Government Support: The government of India has been actively promoting entrepreneurship through initiatives such as "Atma Nirbhar Bharat" and "Digital India," providing support to young companies.
- Access to Technology: Advancements in technology and internet penetration have enabled startups to scale up quickly, leading to the rise of several unicorns in the ecosystem.
- Rising Start-up Hubs: The major startup hubs in India are Bengaluru, Mumbai, and Delhi-NCR, providing a conducive environment for startups to grow and thrive.
- Bengaluru, in particular, has been dubbed the "Silicon Valley of India" due to the large number of technology companies based in the city.
- Problems Associated with Startup Ecosystem:
- Stringent Regulatory Environment: The market laws and regulations are not always tailored to the needs of startups, which can make it difficult for them to comply. This can be a significant burden for early-stage companies.
- Limited Infrastructure and Logistics: The lack of proper infrastructure and logistics can be a major challenge for startups, especially those operating in the e-commerce space.
- The inadequate transportation, warehousing and logistics infrastructure can make it difficult for startups to reach customers and deliver their products on time.
- Lack of Mentorship and Guidance: Startups often lack access to experienced mentors and guidance, which can make it difficult for them to navigate the business landscape and make informed decisions.
- Recent Government Initiatives to Support Startup Ecosystem:
- Start-up India Seed Fund Scheme (SISFS): This scheme provides financial assistance to start-ups to help them prove their concept, develop prototypes, test products, and enter the market.
- National Initiative for Developing and Harnessing Innovations (NIDHI): It is an end-to-end plan for start-ups to double the number of incubators and start-ups in the duration of five years.
- Ranking of States on Support to Startup Ecosystems (RSSSE): The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry has been conducting the States’ Start-up Ranking Exercise since 2018.
- Encouraging Innovation: The government and private sector should encourage innovation by providing funding and support for research and development.
- This can include setting up R&D centres, providing tax incentives for companies that invest in R&D, and connecting startups with universities and research institutions.
- School-Entrepreneurship Corridor: The National Education Policy, 2020 promotes student entrepreneurs by providing vocational education in partnership with industry and thriving innovation at school level.
- This can have a favourable impact on the start-up ecosystem in India, if entrepreneurial skills are integrated with the education curriculum.
- Towards Social Acceptability of Start-ups: By collaborating with various unicorns of India, the government needs to work towards social acceptance of entrepreneurial careers and channelize the youth in the right direction to choose a career with ease.
- Vocal for Local, Local to Global: Indian start-ups have the potential to not only look at Indian traditional problems, but also offer customised solutions for markets abroad.
- Exclusive Startup Zones can be initiated at state levels linked with Atma Nirbhar Bharat Initiative making India an entrepreneurship and export hub.