India ranks 3rd in global start-up index: NASSCOM

MUMBAI, INDIA: Did you know that Indian start-ups received $5 billion funding in 2015; or $100 million per week? And that 1,200 new tech start-ups were born in 2015 so far?

India’s start-up journey has just started gaining momentum, a result of which India today ranks third in the global start-up index, according to a report titled, Start-up India – Momentous Rise of the Indian Start-up Ecosystem.

India is one amongst the first five largest start-up communities in the world with the number of start-ups crossing 4,200, a growth of 40 percent, by the end of 2015.

Some other key highlights include:

•    India is the youngest start-up nation in the world- 72 percent of the founders are less than 35 years old

•    More than 50% of the 1200 start-ups focus on e-commerce, consumer services and aggregators

•    Nine percent female founders and co-founders in start-up ecosystem

•    Number of accelerators grew by 40 percent from ~80 in 2014 to ~110 in 2015

•    Total Funding in 2015, growth of ~125 percent over 2014

•    Number of PE/VCs investment grown by 100 percent over 2014

•    80,000 jobs created by start-ups

The study jointly conducted by NASSCOM and Zinnov was launched by R Chandrasekhar, President, Ravi Gururaj, Chairman, Product Council and Rajat Tandon, Vice President, 10 K Start-up Program, NASSCOM.

Chandrasekhar said, “The maturing Indian start-up ecosystem is now contributing to the Indian economy in many ways. Apart from positively impacting the lifestyles of citizens involved, start-ups are now creating innovative technology solutions that are addressing the key social problems that India is facing and creating significant growth opportunities for every stakeholders. To enable the next stage of growth for these start-ups, NASSCOM will work closely with the government to ensure ease of doing business by simplifying procedures and create a conducive environment.”

The report also highlights certain ways and means to make starting-up easy in India. NASSCOM has recommended the following:

•    Ease the rules and regulation for registration of a business in India, funding, and simplifying compliance procedures by minimizing licenses/permits/approvals/tax for start-ups.

•    Removal of angel tax, simplifying norms for capital raising, enabling easier exit for entrepreneurs and requisite changes in the credit guarantee for loans to start-ups.

•    Steps must be taken to create conducive environment by facilitating incubation, IPR, and innovation norms and also encourage academia-industry tie-up and collaborate to develop the right kind of talent and capabilities that will propel the growth further.

•    Encourage and recognize these start-ups for the innovation and rapid growth by sharing their success stories on a national-level and awarding at relevant Indian and global platforms to help India build a reputation of a start-up-friendly nation.