Sansad TV: Milestones Series- Startup India | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

India's startup scene has been active for more than 40 years. Lately, it has gained a lot of attention due to the numerous entrepreneurial ventures and a strong network of angel investors. This startup movement is now a key driver for India's self-reliance and growth.

About Startup India

Startup India is a project by the Indian Government. Prime Minister Narendra Modi introduced it on August 15, 2015, during his speech at the Red Fort in New Delhi. The initiative was officially launched on January 16, 2016. The plan focuses on three main aspects: simplification and guidance, financial support and rewards, and collaboration between industry and academia along with fostering startups. A startup is defined as an Indian entity operating for less than 10 years with an annual turnover under ₹100 crore.

Role of Startups

Startups contribute by bringing in significant foreign investment, exporting goods and services, and boosting India's economic image. India ranks third globally in the number of startups achieving unicorn status, trailing the US and China, and surpassing the UK and Germany. Women entrepreneurs have also made substantial contributions. Startups like Ola and Flipkart have created a flexible gig economy, particularly in cities like Bengaluru and Delhi, attracting more investment.

Agri-tech Startups

The Agri-tech sector is growing at an impressive 25% annually. Experts predict it will be a major force in agricultural economics by 2020. Innovations in agri-tech are crucial to solving daily challenges and improving rural livelihoods.

Challenges

Many Indian founders are technically skilled but lack business acumen. Finding suitable investors and funding is challenging. There's a disconnect between solution providers and users. Startups face difficulty in penetrating the market compared to big corporations. The current regulatory framework for startups is seen as complex and unpredictable.

Conclusion

India's startup scene is at a pivotal point in its history. The government plays a key role in making India a global tech hub. Startups are spread across the nation. There's a shift towards supporting women entrepreneurs and creating an inclusive environment. Efforts are being made to align domestic policies with global trends. State governments are essential for creating the necessary infrastructure. India must rely on cost-effective, impactful solutions due to limited resources. While angel and venture capital funding is increasing, more investment is needed. Connecting startups with funding sources is crucial. This report emphasizes the role of states and federal structure in building and overseeing India's startup ecosystem for sustained growth.