In an interesting revelation, the Economic Survey has said that the 117,254 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) have cumulatively created outstanding 1.242 million direct jobs. Times Network understands that this development represents the pivotal role of startups in the context of boosting employment and economic growth in India.
PC: KNN India
The Economic Survey is an annual document that reviews the developments in the Indian economy over the past one year. The developments come up with some insights into the burgeoning startup ecosystem. DPIIT, under the Ministry of Commerce and Industry, has worked tirelessly to ensure an enabling policy environment alongside various initiatives and measures for startups to flourish.
A Thriving Startup Ecosystem
It has grown by leaps and bounds over the past couple of years and is currently in the top five. In recent years, this number of startups has been supported by over 117,000, which is a recognition by DPIIT. They represent a wide gamut of areas, right from technology, healthcare, education, and agriculture, attesting to a diversified and dynamic economy.
These startups have created 1.242 million direct jobs, which is phenomenal. This goes on to show that startups do not only bring about disruptive ideas and innovation but also hold immensely vast potential for employment. This is important for a country like India.
Government Initiatives for Growth
The survey also stated that the number of Indian technology startups has increased to 31,000 in 2023 from 2,000 in 2014 helped by the Start-up India Initiative and start-up hubs across ministries and departments of the Government of India.
According to a survey, there are more than 13,000 DPIIT-recognised start-ups in the domain of artificial intelligence, Internet of things, robotics, and nanotechnology, as of FY24.
The strength of the Indian tech start-up ecosystem lies in its large pool of start-ups, unicorns, and ability to scale. With 16 percent of the world’s AI talent, India positions itself as an innovation hub, touting fast adoption of AI skills was stated by the survey.
It also stated that presently, India is the third country in the tech start-up ecosystem in the world and has done considerably better than USA and the UK.
Challenges and the Way Forward
The growth of this startup ecosystem and the subsequent job creation is surely commendable, although it is not without its share of challenges. Issues that some startups still face involve food and finance access, regulatory hurdles, and paucity of highly skilled workers. Dealing with these challenges will really prove to be very instrumental in not only keeping the ball rolling but also ensuring that the ecosystem attains long-term success.
In this context, government continuing support and proactive policy measures by the government will have a major role in overcoming these challenges. Ease of access to capital, ease in different regulatory processes, and skill development will be areas of focus.
