IANS | 19 Nov, 2023
V. Anantha Nageswaran, the Chief Economic Advisor (CEA) to Government
of India, said on Saturday that startups will play a key role in India
achieving its ambitious developmental aspirations and becoming the third
largest economy in the world in a few years' time.
Delivering the
Leadership Talk at the Huddle Global 2023 of Kerala Startup Mission
(KSUM) on the third and final day of the event, Nageswaran pointed out
that Tier-2 and Tier-3 cities of the country, including
Thiruvananthapuram, are emerging as startup powerhouses by leveraging
the improvement in infrastructure and respective government’s supportive
policies.
“As all of you know very well, we are the fifth largest
economy in the world, which on course to become the third largest in a
few years. In fact, I would say '7-in-7' is the buzz slogan, i.e., $7
trillion economy in seven years. It is possible by 2030 if India
maintains its present growth trajectory, and in that journey startup
entrepreneurs are going to play an important role,” said Nageswaran.
“The
active participation of startups in India in developing business models
on the foundation of expanding physical and digital infrastructure will
continue to generate efficiency, revenue and economic returns for the
country. The culture of entrepreneurship and innovation is one
'pandemic' that India would like to experience continuously. It must
spread,” said Nageswaran.
He added that the last decade has seen
an exceptional transformation in the startup landscape of India, which
has emerged the third largest ecosystem globally, with over 1.12 lakh
startups presently recognised by the Department for Promotion of
Industry and Internal Trade (DPIIT) across 763 districts.
Among them, many are unicorns with a total valuation of around $350 billion, the CEA said.
Also, the country ranks second in innovation quality.
The
innovation in India is not just limited to certain sectors, as startups
are solving problems in 56 industrial sectors, with 13 per cent of them
from IT services, 9 per cent from health and life sciences, 7 per cent
from education, 5 per cent from agriculture, and 5 per cent from food
& beverages, Nageswaran said.
“It is significant to note that
49 per cent of startups are from Tier-2 and Tier-3 cities, which has
been a game-changer as the business advantages in these locations enable
entrepreneurs to operate at lower costs as compared to Tier-1 cities,”
Nageswaran added.
