How are Indian startups driving socio-economic transformation on a global scale?

Startups play an essential role in economic growth by generating new opportunities for a country. In recent years, there has been an increase in the number of startups in India, with many rising entrepreneurs presenting disruptive ideas that provide solutions to various complications of the nation and societal issues. Whether it is the technology sector or something new, this shift has produced many opportunities for India's social and economic development, primarily through the creation of work opportunities, which means reduced unemployment rates and a more stable and better economy.

Startups are businesses that want to disrupt sectors and alter the world on a large scale. A startup, founded on innovation, seeks to improve current products or develop completely new categories of goods and services, disrupting entrenched methods of thinking and doing business for entire sectors. As a result, many startups are known to be "disruptors" in their various sectors. In today's generation, startups benefit the Indian economy in a variety of ways, such as growing GDP or providing opportunities in the foreign market.

Creating employment opportunities

India has ascended to become the third-largest startup ecosystem in the globe. Various startups are rising as industry titans; these startups recruit more people than large entities or businesses in the same field. As a consequence, the unemployment rate in developing nations such as India will decline. According to Statista, a total of 80,152 startups have been formally recognised by the DPIIT (Department for Promotion of Industry and Internal Trade) till the year 2022. To date, these companies have created over 7 lakh opportunities, with an additional 20 lakh expected by 2025.

Initiation of technology

In India, startups have brought many new and revolutionary ideas. Various startups introduce products to address societal issues. Following the United States and China, India has the third biggest tech-startup environment. According to a Nasscom report, India gained over 1,300 active tech startups last year, accounting for a total of 2500-2700. These startups have presented many revolutionary concepts based on concerns such as climate change or health difficulties. Technology developments played a significant part in the matter, allowing the country to grow at an unprecedented rate.

Making India a global giant

Startups have enabled India's sector to expand into the foreign market. Over 20% of Indian startups have gone worldwide, primarily in consumer services. Several brands have already demonstrated their potential in the foreign market, and customers are responding positively to their offerings. If these startups continue to grow at the same rate in the future years, there is no doubt that India is on its way to becoming a worldwide power.

Boosting the country's GDP

Startups contribute considerably to the Indian GDP, and studies suggest that this will increase in the future years. According to stride one, Indian startups will contribute approximately 5% of the country's GDP over the next 3-5 years. A developing startup ecosystem is crucial to India's aim of becoming a $5 trillion economy by 2024 and achieving its vision of Aatmnirbhar Bharat. The availability of growing marketplaces, combined with digital innovations, is assisting India in attracting a new $ 8.72 billion in FDI during FY 2020-21. By 2025, India is anticipated to draw 120–160 billion US dollars in FDI annually. The chance enables India to improve its economy and offers numerous social and economic development choices.

In today’s world, startups help the Indian economy in a variety of ways, including increased GDP and international market possibilities. Given that India is growing as a thriving nation in every area. In India, startups have generated numerous opportunities. The strategy solved several long-standing economic problems while also creating more employment possibilities, introducing revolutionary technologies, and assisting in the country's economic growth. To summarize, Indian companies are on the correct track to becoming global behemoths.

Authored By: Dhruv Jolly, Founder & MD, TapOnn Digital