India is fast emerging as one of the largest startup ecosystems in the world and continues to develop at a rapid space. It ranks fourth in the global startup ecosystems scale. Startups have gone a step ahead and created an impact that goes beyond their customers i.e. they have an extensive impact on the socio-economic demography of the country as well.
Let’s have a look at how the growth of startups is all set to take up the country’s economy by a storm.
Recognition on the Global Map
India has emerged at the third position as one of the biggest startup ecosystems in the world giving the country recognition on the global scale as an emerging business destination. As per recent statistics:
- IT startups are growing at the rate of 14%
- From 3100 startups in 2014, it is estimated that the country will have approx. 11500 startups by 2020
Creating More Jobs
Where approximately 59% of the startups are B2C inclined; another 37% caters to B2B. Regardless of their orientation, these startups have a record of employing more than 65000 people in 2014; the count of which is expected to grow by 250000 in 2020.
Urbanizing Indian Cities
As per statistics, following is the percentage of startups in the subsequent cities.
- Bangalore – 28%
- Delhi-NCR – 24%
- Mumbai – 15%
- Hyderabad – 8%
- Chennai & Pune – 6%
The metropolitan cities are growing at a rapid speed as a result of the startup boom. Additionally, other cities are emerging as prominent business destinations. Emerging startup locations in India include Ahmedabad, Thiruvananthapuram, Kolkata, Jaipur and Kochi. Urbanization of cities is an indirect effect of the growth of startups. Individuals flock to these cities from far and wide due to employment opportunities as a result of which a huge difference can be seen in the culture and lifestyle pattern.
In 2014, more than 90 Angel Investors invested in the Indian market. There is an increase in the number Foreign Investors and Venture Capitalists who are taking interest in Indian companies. Take, for instance, Facebook founder and the biggest name on the internet, Mark Zuckerberg, recently gave the go-ahead to invest ($ 50 million) to an educational startup based in Bangalore – Byju.
Considering all the progress ushered in as a result of the startup activity in India, it can be pointed out that startups are all set to make the life of an Indian citizen way easier due to their inexpensive and assessable services. Furthermore, it will also contribute to the development and boost the country’s economy and additionally, it is estimated that the country’s GDP will get a hike of 8% in the coming years.