Site icon INSIGHT INFO TODAY

The Rise of Startup India: A Path to Innovation in 2024

Introduction:-

India provides promising opportunities for startups due to its growing middle class, large market and increasing digital adoption. Government initiatives like Startup India, Digital India and Make In India further support entrepreneurship. Presently India ranks third in the world Startup ecosystem also ranks second in innovation quality in 2023.

Criteria for Startup in India:

source-govt website

Startups: Success story in India:-

Phenomenal growth from 450 startups in 2016 to well over 100000 startups in 2023 as per Dept for Promotion of Industry and Trade (DPIIT), with Maharashtra, UP and Delhi stood out as the top three startup hubs in terms of registration in 2022.Indian startups in the past few years (2015-2022).

15x increase in total funding of startups.

9x increase in the number of investors.

7x increase in the number of incubators.

As of October 2023,India is home to 111 unicorn with a total valuation of around $350 Bn.

Growth of Indian unicorns since 2015:

Unicorns-Unicorns is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 Bn.

Decacorn-A company that has attended a valuation of more than $10Bn.In India five startups namely Flipcarts, BYJU’s, Nykaa and Swiggy are in this club.

Leading sectors inviting funding include Fintech, EdTech, E-commerce, Social network, FoodTech, Logistics and supply chain, Media and Entertainment, and HealthTech. FinTech, EdTech and E-commerce accounted for 20%, 9% and 6% of total funding, respectively.

Future Prospects of India Startups:-

In India number of Internet users has grown from 250mn in 2014 to1.25Bn in 2023. Also in 2022, the size of the e-commerce market was estimated at $63 Bn which is expected to reach $163Bn by 2026 according to the Redseer report. With consistent government support through policy, funding and reform along with the penetration of digital infrastructure, it will grow further.

Government support to startups:-

The government has relaxed FDI norms in sectors like civil aviation, defence, pharmaceuticals, broadcasting, single retail trading and recently in space sector to boost the startup ecosystem in India. Moreover, the government has taken steps to provide policy support.

Intellectual Property Rights(IPRs):for startups

In startups Intellectual property Rights play a crucial role in innovative startup to develop their product. Government has introduced Startup Action Plan 2016 to provide legal support and fast-tracking patent examination at a lower cost.DPIIT has started an initiative (SIPP),the Scheme for Facilitating Startups Intellectual Property Protection .SIPP scheme was launched to foster innovation and entrepreneurship by providing a supportive ecosystem for startups to protect and manage their IP assets.

Funding:for startups

Funding is an essential component for startups to run their business. To raise funding startups require clear idea about its purpose.startups pass through various stages like

1. Prototype creation

2. Product development

3. Team hiring

4.Working Capital

5.Legal & consulting services

6. Raw material & Equipments

7.Licenses & Certificate

8.Marketing & Sales

9. Office space & Admin expenses and require different kinds of funding support.

The government has come across innovative ideas to cater their needs.

Tax Exemption: for startups

Post getting recognition a startup may apply for the following tax exemption-

1.Startup India:80 IAC tax exemption,

2. Startup India:Tax exemption under section 56 of the Income Tax Act (Angel Tax).

Way Forward:-

The year 2023 was patchy for Indian startups as it got the lowest investment in the previous five years. But it came as a blessing in disguise since many startups started working on their business fundamentals. According to a report by Startupblink which ranks the world’s startup ecosystem India requires improvement in infrastructure and internet speed, It could significantly benefit India’s startup ecosystem. It also advises startups to focus on developing innovative solutions that can be applied globally not just locally.In 2024, the Startup India initiative was likely to continue playing a significant role in fostering entrepreneurship and innovation. The government’s support, policies, and incentives for startups were expected to evolve to address the changing business landscape.

More information about the SIPP scheme can be found at-

https://ipindia.gov.in/SIPP.htm

More information about the funding of startups can be found at-

https://www.startupindia.gov.in/content/sih/en/funding.html

Exit mobile version