India's Eco-System for Start-Ups looks bright
India's Eco-System for Start-Ups looks bright
Business

India's Eco-System for Start-Ups looks bright

Pennews

With about 1,400 start ups beginning operations nationally every year, the ability of people to connect, co-mingle and thrive on the energy of new ideas is feeding India’s start-up ecosystem.

Addressing the World Government Summit in Dubai this February, Prime Minister Narendra Modi had said, "We are creating an innovation ecosystem in India via the Start-up India Programme, India has become a start-up nation."

Echoing similar views, Modi told Uttar Pradesh Investors Summit last month that one-district, one-production would be backed the Centre’s Skill India, Start-up India and Stand-up India initiatives.

His message was clear that state government leadership, policies and taxes can be instrumental in shaping dynamics of start-up operations. Therefore, the presence of a positive socio-cultural environment with a wide choice of entertainment and lifestyle options is as important as business enablement and, in fact can prove to be the game changer between cities that make it and those left by the wayside.

Dwelling upon his government’s key programme of Start-Up India, the Prime Minister said, "Our programme is a comprehensive action plan to foster entrepreneurship and promote innovation. It aims to minimize the regulator burden and provide support to start-ups," Modi had told the Global Entrepreneurship Summit in November last. Referring to his government’s MUDRA scheme to provide easy finance of up to Rs. One million to entrepreneurs, Modi pointed out that more than 70 million loans have been sanction to women entrepreneurs alone.

State governments today have to rely on, promote and foster an enabling environment, which has at its fundamental roots common social values. India’s mosaic of cultures, languages, beliefs and customs are already testimony to its historical ability to co-mingle. Yet amidst India’s economic transformation, explosion of entrepreneurial talent and growth MSMEs in the coming decades, cities and towns that exemplify all of this shall undoubtedly prosper as future centres of success.

Bengaluru in Karnataka is an interesting example of a city which has offered an enabling environment to attract the most innovative start-ups as well as global giants investing in the State. Besides offering good infrastructural support to businesses, it is very interesting to see how Karnataka has built an entire cultural reputation around one of India's most cosmopolitan and forward-looking cities.

In its attempt to establish itself as a world-class city, known today as India's Silicon Valley as it is home to some of the world's best known IT and software companies, Bengaluru has taken many positive steps to build its cultural reputation of being modern, global and energetic. As a city where professionals from across India and the world work and live, Bengaluru has also provided its residents with a modern and world-quality lifestyle. Its leisure and entertainment environment includes India’s first microbreweries, which have revolutionized pub culture in the country.

India’s traditional tier one centres have catered to and cultivated start-ups across the e-commerce, technology, logistics, payments and retail spaces, and they shall continue to do so. Beyond their borders, however, regional start-ups are carving out their own niches. This is aided by state government initiatives, the availability of local high net-worth individual investors, talent and a supportive business ecosystem.

Start-ups in India, thriving on digitalisation, a millennial workforce and unbridled ambitions, are all searching for the ideal location. Delhi NCR, Bengaluru and Mumbai have long led the start-up scene as India's locations of preference and with good reason. Combined, they funnelled almost US$12.2 billion into start-ups in the first half of 2017 alone. Start-ups located there have also benefited from a strong pool of experienced and fresh talent. Yet smaller cities across India are also beginning to find their feet, and their start-ups. And it's not just all about the money.

State governments today have to rely on, promote and foster an enabling environment, which has at its fundamental roots common social values coupled with tolerance and respect. India’s mosaic of cultures, languages, beliefs and customs are already testimony to its historical ability to co-mingle. Yet amidst India’s economic transformation, explosion of entrepreneurial talent and growth MSMEs in the coming decades, cities and towns that exemplify all of this shall undoubtedly prosper as future centres of success.

Addressing the second International Technology Summit last year, Union IT and Electronics, Law and Justice Minister Ravi Shankar Prasad had pointed out that India has emerged as the third biggest start-up movement in the world and the best young brains were now creating jobs through start-ups.

Amitabh Kant, CEO of Niti Aayog, said that India was looking for great mentors who can actually join hands to transform India. ``The key to transforming India is if private and public sectors can work together,’’ he said while speaking to IIM alumni last year.

An enabling environment to attract innovative start-ups as well as getting investments from global giants is key pre-requisites for Start-up programme. Bengaluru in Karnataka has emerged as an interesting example of a city which offers good infrastructural support to businesses. It is interesting to see how Karnataka has built an entire cultural reputation around Bengaluru, one of India's most cosmopolitan and forward-looking cities. This includes its openness around bar and pub culture, vibrant nightlife, shopping, cinemas et al.

In its attempt to establish itself as a world-class city, known today as India's Silicon Valley as it is home to some of the world's best known IT and software companies, Bengaluru has taken many positive steps to build its cultural reputation of being modern, global and energetic. As a city where professionals from across India and the world work and live, Bengaluru has also provided its residents with a modern and world-quality lifestyle. Its leisure and entertainment environment includes India’s first microbreweries, which have revolutionized pub culture in the country.

India’s traditional tier one centres have catered to and cultivated start-ups across the e-commerce, technology, logistics, payments and retail spaces, and they shall continue to do so. Beyond their borders, however, regional start-ups are carving out their own niches. This is aided by state government initiatives, the availability of local high net-worth individual investors, talent and a supportive business ecosystem.

What will perhaps enable the most conducive environment for these ecosystems to grow will be the social and cultural openness of cities like Jaipur, Pune, Chennai and Vizag which are making their mark in fintech, SaaS, agritech and deep tech. Local issues and social impact initiatives are also finding fertile ground and government support. Chhattisgarh governmnent’s ‘Start-up Chhattisgarh’ programme logged over 3,500 ideas last year to address local issues. It is just one example of how nearly two-thirds of all incubators in India are now in tier two and three cities.

The drive India is witness to from these once distant centres is not simply a matter of policy, space and money, however. Trends once ascribed to the millennial workforce are growing ever more cross-generational and pervasive. Across the spectrum, India is seeing a migration to resource access, not ownership (think Uber and Ola). Environmental awareness is growing, as is the importance given to well-being and social impact. It is, in a positive sense, the rise en masse of the motivated individual. (UNI)

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