The Indian government’s Chief Economic Advisor (CEA), V. Anantha Nageswaran, said on Saturday that startups would be crucial to India fulfilling its lofty growth goals and rising to the third position in the global economy in the next years.
On the third and last day of the event, Nageswaran gave the Leadership Talk at the Huddle Global 2023 of Kerala Startup Mission (KSUM). He noted that Tier-2 and Tier-3 cities in the nation, like Thiruvananthapuram, are becoming startup powerhouses by utilizing the advancements in infrastructure and the policies that support them from their respective governments.
We are now the fifth-largest economy in the world, but in a few years, we should be the third, as you are all well aware. Indeed, I believe the catchphrase of the day is “7-in-7,” which stands for a $7 trillion economy in seven years. If India continues on its current economic track, it is feasible by 2030, and Nageswaran predicted that startup entrepreneurs would be crucial to that effort.
The aggressive involvement of Indian entrepreneurs in creating business plans based on the development of more digital and physical infrastructure will keep the nation’s economy growing in terms of output, profits, and efficiency. India would want to perpetually experience a “pandemic” of innovation and entrepreneurship. It has to go out there, Nageswaran added.
He continued by saying that India’s startup scene has undergone a remarkable metamorphosis over the past ten years, growing to become the world’s third largest ecosystem with over 1.12 lakh startups currently recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) in 763 districts.
According to the CEA, several of them are unicorns, valued at a combined $350 billion.
The nation is ranked second for quality of innovation as well.
Innovation in India isn’t confined to a few industries; startups are tackling issues in 56 industrial sectors, with 13% coming from the IT services sector, 9% from the health and life sciences sector, 7% from education, 5% from agriculture, and 5% from the food and beverage sector. stated Nageswaran.
“Notably, Tier-2 and Tier-3 cities account for 49% of startups. This is a game-changer because the business advantages in these locations allow entrepreneurs to operate at lower costs compared to Tier-1 cities,” Nageswaran said.