Startups will play important role to help India be 3rd largest economy: CEA

Startups will play a major role in helping India become the third largest economy in the world, says Chief Economic Advisor (CEA) to the Union Government, Anantha Nageswaran.

Nageswaran said tier 2 and 3 cities, including the capital of Kerala, have become game-changers in helping startups in the country due to improvements in infrastructure and supportive policies from the government, according to a KSUM release.

The CEA, during its Leadership Talk on the concluding day of the Huddle Global 2023 organized by the Kerala Startup Mission (KSUM), said India is the fifth largest economy on track to become the third largest within a few years.

“In fact, I will say that 7-in-7 is the buzz slogan, which is a $7 trillion economy in seven years. A $7 trillion economy by 2030 is possible if India continues its current growth trajectory, and start-up entrepreneurs will play an important role on that trajectory,” he is quoted in the release.

He opined that the active participation of startups in India in developing business models based on the expansion of physical and digital infrastructure will continue to generate efficiencies, revenues and economic returns for the country.

“The past decade has seen an extraordinary transformation in the startup landscape in India, which has grown into the third largest ecosystem in the world, with over 1.12 lakh startups currently recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) in 763 districts.

“Among them are more than 110 unicorns with a total value of approximately $350 billion,” he said.

The CEA further said that the country ranks second in terms of innovation quality.

He said innovation in India was not just limited to certain sectors as startups were solving problems across 56 industrial sectors, of which 13 percent were from IT services, nine percent from healthcare and life sciences, seven percent from education , five percent from the penny from agriculture and five percent from food and beverages.

Nageswaran also said it was significant that 49 percent of the startups were from tier 2 and 3 cities, which have become game-changers as the business advantages in these locations allow entrepreneurs to operate at a lower cost compared to tier 1 cities. .

“Apart from improved infrastructure and proactive policies of the government, the availability of a technically skilled talent pool is a huge advantage for startups to establish themselves and prosper in tier-2 and tier-3 cities,” he said.

He said historically there was a perception that small towns were difficult places to do business.

“…but with improved internet penetration, vastly improved physical infrastructure, road, rail and air links and supportive government policies, this is no longer true,” he said.

He also noted that Kerala’s startup trajectory was inspiring.

The CEA said that since its inception in 2006, KSUM has served as a catalyst to promote changes that have propelled the state to the forefront of the global startup arena.

KSUM is the nodal agency of the Government of Kerala, established in 2006 for entrepreneurship development and incubation activities in the state.

Nageswaran said that with over 4,000 registered tech startups, 63 incubators and 10 million square feet of incubation space, KSUM has not only achieved its goal of promoting technology-based entrepreneurship but also earned the pre-eminent position of being among the best business incubators in the world to belong.

The fifth edition from November 16-18 of Huddle Global, India’s largest beachside startup conclave, was organized by KSUM at Adimalathura Beach, near Vizhinjam, here.

The event was attended by approximately 1,500 delegates and showcased cutting-edge products from emerging sectors such as robotics, artificial intelligence, machine learning, augmented reality, virtual reality, life sciences, space technology, blockchain, IoT, e-governance, fintech, health tech, agritech, edutech and SaaS from across the country.