India comprises the third largest startup ecosystem compared to the rest of the world. Particularly since 2015, the Indian startup ecosystem has experienced exponential growth.
As stated by the Department for Promotion of Industry and Internal Trade (DPIIT), which spans over 670 districts all over the nation, over 99,000 startups were recognized as of 31 May 2023. Over the past eight years, on average, the Indian startup ecosystem saw the registration of four startups every. The Tier 2 and Tier 3 cities host nearly 47 per cent of all startups in India.
More than 45 per cent of all registered startups are led by women, providing women's aspirations wings. Recently PM Modi virtually addressed the G20 ministerial conference on women empowerment in Gandhinagar, Gujarat. He emphasized women’s growing role in the Indian startup ecosystem. He said, “In India, about 15 per cent of unicorn startups have at least one woman founder. Our goal should be to create a level platform where women achievers become the norm. At the same time, we need to ensure that the burden of care and domestic work is appropriately addressed”. PM Modi also highlighted that the combined value of women-led startups in India is over $40 billion.
Unicorn Central
India has been ranked second in terms of innovation quality whereas, among the middle-income nations, India also ranks at the top for the caliber of its universities and scientific publications. During the financial year of 2016 and 2017, one new unicorn was added. However, the number of unicorns in the Indian startup ecosystem has been increasing widely over the last four to five years, with a 66 percent growth rate on an annual basis. India will have 108 unicorns valued at a combined $ 340.8 billion as of May 31, 2023, including 44 startups that turned into unicorns in the year 2021 and 21 of them in 2022 which demonstrates the startup ecosystem’s rapid transformation in India. Every month, at least one unicorn establishes in India, also out of ten unicorns globally, one is always from India.
A Rise in Funding
India has also witnessed 15 times increase in the amount of money given to start-ups, 9 times increase in investors, and 8 times increase in incubators. India has shown wide growth with great speed in the past years. Indian startups have also been inspired to take a leap and grow significantly as a result of the government-supported initiatives that support the Indian economy. Indian startups are also creating cutting-edge technologies and solutions in this modern era.
A leading Indian media and information platform recently released a report about the state of the Indian startup ecosystem that revealed some exceptional statistics. Due to a consistent advancement in venture capital inflow, the Indian startup ecosystem is expanding tremendously. From just $5 billion in 2014, venture capital funding for Indian startups has increased by 8.4 times which has now become $ 42 billion in the year 2021.
The compound annual growth rate (CAGR) of funding for Indian startups has surpassed that of China. From 2014 to 2021, startups in India have witnessed a CAGR of 49 per cent while those in China have seen a CAGR of 12 per cent.
The report also states that, if the current trend of advancement continues, soon India will have the second-largest startup ecosystem in the world by 2025. According to the report, there will be 250 unicorn companies by 2025, with a total valuation of Indian startups exceeding $ 450 billion.
The increasing number of job vacancies that the Indian startup ecosystem has been generating in the marketplace is another noteworthy feature of the ecosystem. Jobs created by the Indian startup have also increased by 525 per cent since 2016. Over 9 lakh jobs have been provided from 2016 toll 2022.
Government Powered Growth
The Indian government has also made numerous efforts to foster an environment that allows startups to grow and succeed. An entrepreneurial revolution was started by a flagship initiative started by the government named Startup India. The National Initiative for Developing and Harnessing Innovations, the Atal Innovation Mission, the Startup India Seed Fund Scheme, JAM Trinity, UPI, and India Stack
India is rapidly establishing a more dynamic and growth trajectory startup ecosystem. It provides promising opportunities to Indian business owners as of the large population and expanding economy.
