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  • Startups On Indian Economic Growth: ISSN (PRINT) : 2393-8374, (ONLINE) : 2394-0697, VOLUME-5, ISSUE-3, 2018

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    Prakash Vadavadagi
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    This document discusses the role of startups in India's economic growth. It notes that India has over 3,100 startups founded each year, second only to the US, UK, and Israel. If growth continues, Indian tech startups are expected to generate over 250,000 new jobs in the next five years. Startups play a key role in innovation and job creation in India. They bring new technologies and help move India up the value chain from outsourcing to more skilled work. The government has launched various initiatives like Startup India to boost entrepreneurship and address critical needs through startups in areas like healthcare, education, and financial inclusion.

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    This document discusses the role of startups in India's economic growth. It notes that India has over 3,100 startups founded each year, second only to the US, UK, and Israel. If growth continues, Indian tech startups are expected to generate over 250,000 new jobs in the next five years. Startups play a key role in innovation and job creation in India. They bring new technologies and help move India up the value chain from outsourcing to more skilled work. The government has launched various initiatives like Startup India to boost entrepreneurship and address critical needs through startups in areas like healthcare, education, and financial inclusion.

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    22 views3 pages

    Startups On Indian Economic Growth: ISSN (PRINT) : 2393-8374, (ONLINE) : 2394-0697, VOLUME-5, ISSUE-3, 2018

    Uploaded by

    Prakash Vadavadagi
    This document discusses the role of startups in India's economic growth. It notes that India has over 3,100 startups founded each year, second only to the US, UK, and Israel. If growth continues, Indian tech startups are expected to generate over 250,000 new jobs in the next five years. Startups play a key role in innovation and job creation in India. They bring new technologies and help move India up the value chain from outsourcing to more skilled work. The government has launched various initiatives like Startup India to boost entrepreneurship and address critical needs through startups in areas like healthcare, education, and financial inclusion.

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    of 3

    STARTUPS ON INDIAN ECONOMIC GROWTH

    V. Ambika1, K.Rajeswari2, R. Saranya3


    1,2,3
    Assistant Professor, Department of Management Studies, Dr. N.G.P Institute of Technology

    ABSTRACT
    With the gen-next breezy trend to initiate KEYWORD: Economy, Young
    working on fresh and inventive ideas, India is Entrepreneurs, 2020, Culture, High
    all situate to do better than all other nations Turnover.
    on the world stage in the upcoming years.
    Giving the path to small businesses for young INTRODUCTION
    entrepreneurs is positively going to improve A startup is a company that is in the first stage of
    Indian economy in the near future. India is a its operations. These companies are often
    home for almost 3100 startups starting per initially bankrolled by their entrepreneurial
    year standing just behind US, UK and Israel founders as they attempt to capitalize on
    according to the NASSCOM report of 2015. If developing a product or service for which they
    the growth is continued on the same pace then believe there is a demand. Due to limited revenue
    it is expected that Indian tech startups will or high costs, most of these small-scale
    generate almost 2.5 lakh jobs in the next five operations are not sustainable in the long term
    years. without additional funding from venture
    capitalists.
    India is also said to enjoy demographic
    dividend and it is likely that by 2020 India will In the present status 10 million jobs are needed a
    be a residence to 112 million functioning year, large enterprise is not the only source to
    population falling in the age bracket of 20-24 create new jobs in any country. Startups act as
    years as compared to that of 94 million centre for innovation and enhance employment
    workers of China. This demographic dividend in the country. However, more important aspect
    will absolutely make better the startup culture is the technological enhancement they bring to
    in the country. the country. Startups involve dealing with new
    technology which generally lies at the highest
    Bearing in mind the significance of end of value addition chain. With more and more
    responsibility that the Indian startups are all startups India can aspire to be world leader in
    locate to play in the enlargement of Indian skilled work and not just an outsourcing
    economy. The turnover achieved through the destination for cheap IT services.
    startups and the vast numbers of jobs that can
    be created by facilitate startups, even the Bringing new competitive dynamics in the
    market controller Securities and Exchange economic system – Startup companies are the
    Board of India (SEBI), the ease of use of most dynamic economic organizations on the
    startup regulation led to facilitate the flow of market, since they provide additional dynamics
    funds from the market to startups. and competitiveness to any economic system.
    This means that the economy stays healthy, vital
    The startups will not only make the and diligent, while individual companies find it
    lives of the citizens easier through their harder to fall asleep on their laurels. Startup
    inexpensive and expedient services but will entrepreneurship is crucial because it brings
    also act as a key booster for the expansion and innovations, new jobs and competitive dynamics
    steps forward of the Indian economy. into the business environment.

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    68 
    INTERNATIONAL JOURNAL OF CURRENT ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR)
    An oft-mentioned aspect of startup companies is and other areas as well. Quite a few startups have
    that they first test different possible business also ventured into food delivery service as well.
    models in order to find the right fit for the Examples include Mast Kalandar in Mumbai and
    market. This disruptive attitude is not possible Bangalore, Eatlo, Freshmenu, TinyOwl etc.
    with large corporations with many stakeholders These have produce employment opportunities
    to answer to. As corporations grow they come in great number for unorganized sections of the
    under the ambit of governance and shareholders society in the form of delivery persons. At the
    want to have a say in the decisions the company same time, it has increased convenience for
    makes. consumers as well.
    Venture capital funds from abroad and
    angel investors are proving to be a big boon for GOVERNMENT INITIATIVES
    Indian startup story. Indian startups such as The Prime Minister’s Startup India campaign is
    Flipkart, Olacabs, Snapdeal, Hike, Shopclues, a great initiative to boost entrepreneurship in
    Freecharge, Inmobi etc. receive various rounds India. This initiative will play a very important
    of follow-on financing as well either from their role in further facilitating startups and providing
    existing investors or from any new investor. a new dimension to entrepreneurship in the
    These various rounds of funding also help these country.
    firms to hire more talent into the company. This
    helps the company to grow strategically and also India needs to address the critical needs of the
    add some more experienced people in the firm. country in areas like affordable healthcare,
    In the recent times head hunting and poaching education, financial inclusion, etc. In spite of a
    are common among these tech startups. There is ‘startup unfriendly environment’, Indian
    a huge demand for Indian software engineers entrepreneurs have already made India one of the
    around the world. Any startup owner in any top 4 entrepreneurial hotbeds in the world. It
    country sets an eye to hire talent from India, bodes well for the country that the current
    since it reduces their cost by almost 25% and at government, for the first time in modern Indian
    the same time it provides a very good history, has understood the criticality of startups
    employment opportunity for the developer. for employment and economic growth and has
    Apart from funding, mergers and acquisitions are launched 'The Start-up India, Stand up India
    also helping these startup companies to grow by mission'."
    acquiring new capabilities directly and
    expanding into the market share of the acquired The government must help startups promote
    company. For example, Myntra, an app based themselves, not just in India but across the globe,
    shopping portal by another technology giant as well as create policies that are startup friendly
    Flipkart to gain the market share. Snapdeal so that Indian startups get a major boost and they
    recently acquired Freecharge to grow into the can further create better employment
    area of mobile payment gateways, since mobile opportunities for the youth of the nation.” The
    payments are a next hot spot sensed by various Government should enable easy availability of
    startups presenting immense opportunities for loans across the country. Startups can have more
    further penetration. Not only in India but also tax-friendly norms to sustain the pressure which
    internationally tech giants have used acquisition sometimes adds to their cost.
    of companies as a way to maintain their position
    of market leader and also as a way to enhance Indigenous startups will not only make the lives
    diversification. An example of this could be of the people easier through their affordable and
    acquisition of messaging app Whatsapp by convenient services but will also act as a major
    another giant Facebook. booster for the development and the progress of
    Startups are boom in India in various new the Indian economy.
    fields as well. Educational tech startups are a
    new hot among a range of investors since it is CONCLUSION
    projected that the entire educational system will While in the country like India, government
    be digitized in the near future. Similarly, startups alone cannot fulfill the employment
    are also keep eye on big data for analytics, opportunities. Individuals need to come forward
    healthcare, beauty and fitness, biotechnology to help themselves, given the viable business

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    69 
    INTERNATIONAL JOURNAL OF CURRENT ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR)
    atmosphere by the government. Adam Smith, an  http://articles.economictimes.indiatimes.c
    18th century economist and author, in his book om/2014-12-20/news/57257462_1_ukibc-
    Wealth of Nations has talked about the “Invisible zone-startups-indian-startups
    Hand” that Individuals pursuing their best self  http://profit.ndtv.com/news/industries/arti
    Interest would result in greater overall good to cle-indian-start-ups-may-create-2-5-lakh-
    the society. If India wants to mark its presence in jobs-in-5-years-722818
    the global arena, this Invisible hand would be  http://articles.economictimes.indiatimes.c
    none other than our budding entrepreneurs and om/2014-08-01/news/52327432_1_abc-
    start-ups which can make the elephant dance consultants-manpowergroup-india-fresh-
    again..! funding
     http://yourstory.com/2015/02/union-
    References: budget-2015-startup/
     http://yourstory.com/2015/02/economic-
    survey-technology-india/

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    70 

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