New Delhi: India has emerged as the third largest startup hub worldwide. The booming startup industry has generated over 1.6 million jobs across the country, demonstrating their role as significant employment generators.
India, with over 100+ unicorns, is shaping the future of innovation and entrepreneurship. The country has more than 73,000 startups with at least one-woman directors that have been recognised under the Startup India Initiative of the Prime minister-led Narendra Modi government.
Job Creation and Economic Impact of Indian Startups
The growing startup industry has boosted GDP growth as it has contributed directly to GDP through innovation-driven productivity and indirectly by fostering ancillary industries. It has also attracted foreign investments as India has become a magnet for global venture capital (VC) and private equity (PE) investments.
The startups have also promoted inclusivity. The startups with a focus on rural and social enterprises have helped address the critical gaps in healthcare, education, and agriculture, improving the quality of life for millions, the Union Ministry of Commerce & Industry stated.
The government has also taken several steps to support the startup industry. It has simplified compliance, self-certification, and single-window clearances have reduced bureaucratic hurdles for startups. The startups registered under the scheme enjoy tax exemptions for three consecutive financial years.
The Fund of Funds for Startups (FFS) initiative has allocated Rs 10,000 crore to boost early-stage funding. The Bharat Startup Knowledge Access Registry (BHASKAR) platform is designed to centralise, streamline, and enhance collaboration among key stakeholders within the entrepreneurial ecosystem, including startups, investors, mentors, service providers, and government bodies.
“India’s journey toward becoming the world’s leading startup ecosystem is driven by a combination of demographic, economic, and policy factors. With a young, educated population, a growing middle class, and an increasing penetration of digital technologies, the country is poised for exponential growth,” the ministry stated in its release.
The information has been taken from Ministry of Commerce & Industry’s release on PIB.
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