Role of start-ups in the growth of the Economy in India

1. Employment Creation

• India has 112 million working-age people between the ages of 20 and 24, in the absence of government jobs, this demographic dividend is accelerating the country’s startup culture.
• These startups are simultaneously enabling more jobs than large companies or enterprises in the same industry. Therefore curbing the unemployment problems in developing nations like India.

2. New Investments

• Many multinational corporations are now outsourcing their tasks to small businesses in order to focus on their core competencies.
• As a result of this trend, not only Indian venture capitalists but also many multinational corporations are closely monitoring the progress of Indian start-ups to invest their money.

3. Research and Development

• The startup’s R&D team acts as an innovation seeker and keeps the company updated.
• It encourages a pragmatic approach or independent research at the academic establishment.

4. Better GDP

• Economic development will become feasible to increase revenue domestically and consumer capital can also circulate throughout the nation for promoting and supporting more start-up initiatives.

5. Democratizing the Technology Benefits

• Fintech startups are reaching out to remote areas with their solutions and making financial solutions easily accessible in tier 2 and tier 3 cities. Ex: Hesa, (Fintech and Agritech startup) is bridging the rural-urban divide with technology and labour
• It is successfully facilitating banking transactions, managing supply chains, and increasing the visibility of farmers’ rural products.
• it has become easier for local entrepreneurs operating in rural areas to market and sell their products.
• Local entrepreneurship is no longer limited to a particular region but is capable of competing on a global scale, assisting India in becoming a stronger economy.

The subtle influence of start-ups on the Indian Economy

• It creates employment for locals, increasing the influx of cash and revenue to the government and thus boosting the economy.
• Changes the infrastructure facilities dramatically of the place through blooming of one particular location with individual creating livelihood
• With infrastructure upgrades, numerous guesthouses, homestays, food outlets, and transport service unlocks, creating countless job opportunities and increasing the city’s revenue.
• Start-ups also create innovative solutions and technologies that enhance people’s quality of life
• With Indian start-ups maintain the requirement for a requisite product or service, it reduces the import of that foreign product or service. This will minimises the cash flow to another nation and increases the flow of capital within the Indian market, is pivotal to the growth of the Indian economy.

Conclusion

• India has a massive, diverse population with many talented individuals in search of work, it is essential to develop state ecosystems by establishing a startup policy, start-up portal, and helpline within every state.
• Creating incubation centres, co-working spaces, entrepreneurial cells, and instilling an entrepreneurial spirit in every student at a young age is even more necessary.