Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, feels that India is well-positioned to produce 1 lakh unicorns and 10-20 lakh startups in the future.
Citing his reasoning, Chandrasekhar stated that the country’s talent pool and state investments in worker upskilling will pave the way for an increase in the number of startups and unicorns.
“As a result, I believe there is a lot of room for expansion.” We’re talking about 100-104 unicorns and a million startups. The goal is to create one lakh unicorns and 10 to 20 lakh companies. That is the type of opportunity that India truly provides for young Indians…,” Chandrasekhar told PTI.
Without providing a date, Chandrasekhar stated that the goal of 1 lakh unicorns was achievable. He avoided answering the issue by stating that the slope and trajectory of technology made predicting particular timetables difficult.
The MoS stated that India’s’success in invention, entrepreneurship, electronics manufacturing, and digital innovation was only the tip of the iceberg. While emphasizing that India’s advances in global tech and digital are only getting started, Chandrasekhar stated that the startup environment has a lot of opportunities to develop.
He praised the country’s public digital infrastructure, saying that the state-backed IndiaStack has demonstrated to the world how technology could be “deployed for good, to benefit people, society and communities, and the country at large.”
He also predicted that the pace of digitalization in government, governance, and the economy would pick up in the coming years.
During Chandrasekhar’s tenure, the digital ecosystem has undergone a comprehensive regulatory makeover. While the ministry has promoted the local electronics and semiconductor industry around the world, it has also implemented numerous new changes, ranging from IT modifications to the draught Digital Personal Data Protection Bill.
In addition, he has been active in the impending Digital India Bill, which may replace the ailing, decade-old Information Technology Act of 2000.
The minister’s declaration, however, comes with a funding freeze that has gripped the entire Indian startup scene. According to Inc42 data, startup funding fell 78.5% year on year (YoY) to $580 Mn in June 2023. In the first six months of 2023, financing raised by Indian startups fell 72% year on year to $5.4 billion, down from $19 billion in the same time the previous year.
Not only that, but global economic challenges and a lack of finance have made investors wary of Indian businesses. A host of corporate governance concerns and a lack of profitability at most of the local new-age tech companies have exacerbated the situation.
So far this year, no startup has joined the unicorn club. Furthermore, several have been forced to cut corners, lay off personnel, and halt construction plans to lengthen their runways.
While no one knows when the market will return to full bloom, the minister’s optimism may find few takers in the market. For the time being, it remains to be seen how Indian startups survive until the world’s third-largest startup ecosystem returns to routine.
