India has a flourishing start-up ecosystem and it has attracted many bright and talented young minds from around the country.
Since the economic liberalization of the nineties, policy initiatives and governmental intervention have helped many startups achieve the heights of success in India.
These factors have contributed to the development of a thriving startup culture in a competitive marketplace, that has numerous unique and innovative companies competing for success.
According to a 2017 NASSCOM report, there are more than five thousand tech startups in India, which makes the country the third largest startup hub in the world, after the UK and the US.
The Elements of a Startup Ecosystem
An entrepreneur alone cannot sustain a startup ecosystem, nor create a thriving and innovative new company. Building a sustainable startup culture requires the holistic participation of numerous stakeholders, including investors, customers, the government, institutions, and entrepreneurs.
So what makes for a great startup ecosystem, and how can India improve its own to create even greater opportunities for startups to flourish in the country?
Startups Need Resources
A startup is essentially a new company and requires the same resources that any company would. These include capital, land, qualified employees, specialists, and investments.
The easy availability of these resources is what makes for a viable startup ecosystem, that can enable new companies with innovative products and business models to grow and flourish.
Making these resources available to entrepreneurs is not something that can be done overnight. Hence, institutions and the government must do their part to help Indian startups make progress on their journey towards success.
Some steps that should be taken to achieve this goal are:
- Reducing interest rates on business loans
- Easing land acquisition norms and regulations
- Creating special economic zones (SEZs) to incentivize entrepreneurs through tax breaks
- Offering entrepreneurship courses in government universities and colleges
- Improving the standard of primary and secondary education to enable the creation of a well-trained labor force
- Easing labor laws and democratizing employment opportunities
- Offering small business loans at lower interest rates
These are just some of the ways in which the startup ecosystem in India can be strengthened and reinforced. For the long-term growth of the Indian economy, a startup-friendly environment is a must.
Being one of the largest agrarian economies in the world, India is yet to give rise to authentic agro-based startups that can help uplift farmers and enhance the productivity and profitability of the agricultural sector. For this to happen, sufficient sources of funding and pro-active government policies are needed.
Only then will India be able to assume its rightful place as one of the major hubs of innovation and a leader of the world economy.