Today, India is on its way to becoming the third largest economy, our economic boom is driven by offshoring, investments in manufacturing, energy transformation and our advanced digital infrastructure. However, for India to truly prosper, India must come together. As of 2015, 67.2% of India’s population still lives in rural areas of the country. This is 2/3 of the human capital of India. It is expected that by 2050, the urban-rural separation will be 52.8% and 47.21%. What is driving this change? Ambition. People want access to better jobs, earn more, live a better life, have access to better schools and healthcare.
But are businesses only thriving in metropolitan cities? Smaller cities like Indore, Jaipur, Raipur and Chandigarh are becoming a breeding ground for entrepreneurs, offering more benefits than larger cities and emerging as startup hubs. By first leveling the playing field, technology has paved the way for meritocracy. Indian businesses are no longer constrained by the boundaries of geography and distance.
India will have 1 billion smartphone users by 2026, our internet rates are 1/5 of what the average US customer pays, and the mobile market has products that appeal to all price-conscious consumers (you can buy a smartphone under $100). India was quietly building a digital infrastructure that enabled people to not only work from home, but also shop from home, access telemedicine, receive government benefits, bank from home, study from home and has given the facility to to flourish.
The Covid 19 lockdown showed us that physical limits don’t matter much – we all shop at businesses across the country. For companies, the impact was much more profound. A Tezpur-based company was accessing the same customers, financing and support as a company in Mumbai. Even though the lockdown was eased, these benefits were maintained.
The Rise of Tech-Driven Startups in India
India’s fintech revolution is now famous. We are one of the fastest growing fintech marketplaces in the world with over 2,000 government-recognized fintech companies. Our market size was $50 billion in 2021 and is expected to reach $150 billion by 2025. UPI has crossed our borders and is now rolling out overseas. More importantly, the Indian fintech ecosystem is enabling people across the country to do online banking, make and receive secure payments in wallets and accounts, wealth management and personal finance services, insurance, and even get help with accounting and regulatory tasks of your company. .
India not only achieved a commendable 2 billion vaccinations in just 18 months, but also revolutionized our healthcare industry. Telemedicine is expected to reach $5.4 billion by 2025, and $200 billion over the next 10 years from the National Digital Health Plan. It is expected to unlock additional economic value of more than Rs. All of these changes are making it possible for people in rural areas to access quality medical professionals remotely. Next-generation AI-powered diagnostic devices will reduce diagnostic errors and save time. Not only this, by making these devices available in rural settings, patients will be able to travel to the city for medical care only when absolutely necessary, thus saving valuable time and money.
E-commerce is another area that is driving growth beyond metropolitan areas. While all e-commerce platforms break down the boundaries of geography, the Department for the Promotion of Eternal Industry and Commerce (DPIIT) has created an e-commerce platform that truly democratizes access. The ONDC platform is expected to break down all the silos in e-commerce. This platform will not only interoperate with other applications, but will also provide a level and open playing field for smaller players who do not have the advertising and marketing budgets of larger players. So now, the small players in India can compete in the global market without artificial bottlenecks and unnecessary expenses.
India’s startup ecosystem
While all this growth may seem natural, it is supported by India’s growing ecosystem of start-ups.
The startup ecosystem is a network of resources that promotes innovation through startups. These ecosystems give startups access to mentoring, office space, and investment options and also allow them to network with other businesses. These ecosystems do not arise by chance; they require the conscious support and resources of governments, local authorities, educational institutions and large corporations.
India’s startup ecosystem received a major boost through the Government of India’s Startup India Initiative (PAHAL), which began in 2016. This led to a three-pronged approach:
● Establishment of Startup India Hub, which provides a single point of contact for the entire ecosystem of start-ups, sharing knowledge and accessing funds.
● A compliance regime based on self-certification that significantly reduced the regulatory burden for startups.
● Launch of a mobile application and portal that allows startups to interact with government and regulatory institutions from anywhere.
In addition, DPIIT has approved funding of over $1.33 billion to boost India’s start-up ecosystem. Schemes like Aspire (A Scheme for the Promotion of Innovation, Rural Industries and Entrepreneurship), Stand Up India and Atal Innovation Mission also make it easy for entrepreneurs from diverse backgrounds to bring their innovations to a global hearing (global audience). Aspire (Aspire) targets agriculture based industries through incubators while Stand Up India offers easy credit facilities for SC (Scheduled Caste), ST (Scheduled Tribe) and women entrepreneurs. Atal Innovation Mission takes care of startups and helps them grow.
Regulation that is better for business, and also better for people
India’s progress in these areas, especially in light of the decline of global players like FTX and Theranos, points to the strength of the Indian regulatory ecosystem and quality framework. Here, the checks and balances go beyond mere regulation. The Quality Council of India, formed in 1997, has worked tirelessly to create a quality ecosystem encompassing customers and suppliers, employees and employers, regulators and businesses.
QCI work does not exist in a vacuum. Each Accreditation Standard and each Certification has been developed in consultation with the industry bodies most affected by the above regulations. Once formalized, QCI creates enabling assets that make it easier for companies and regulators to socialize these standards. Finally, QCI also helps maintain quality inspectors and auditors by accrediting these training and consulting providers.
QCI is made up of five constituent boards, each with its own separate coverage: National Board for Quality Promotion (NBQP), National Accreditation Board for Certification Bodies (NABCB), National Accreditation Board for Education and Training (NABET ), National Accreditation Board for Hospital and Healthcare Providers (NABH) and the National Accreditation Board for Testing and Calibration Laboratories (NABL).
India’s quality standards are, for the most part, ahead of global quality standards, though not on par. NABCB is a member of the National Accreditation Forum (IAF), the International Laboratory Accreditation Corporation (ILAC), and the Asia Pacific Accreditation Corporation (APAC), as well as a signatory to their Multilateral Mutual Recognition Agreements (MLA/MRA) for various accreditations. NABH is an institutional member of the International Society for Quality in Health Care (lSQua). He is a member and board member of the Asian Society for Quality in Health Care (ASQua).
All these international alliances mean that Indian quality standards always keep pace with global standards, giving Indian companies the ability to compete with global players. QCI’s Zero Effect Zero Defect (ZED) certification program summarizes these learnings for the MSME sector. This, combined with ONDC, creates an ecosystem that makes it easier for small businesses to compete effectively with large international players.
Is it any wonder that India has the third largest startup ecosystem in the world and has launched over 57000 startups with a combined valuation of over $450 billion? Or that these new companies are spread across the country and not concentrated in metropolitan areas?
Our MSMEs are one more reason to celebrate. India’s merchandise exports crossed the $400 billion milestone in FY22. MSMEs are responsible for 40% of our exports. Not only this, they are responsible for 30% of our GDP and 45% of our total manufacturing. They also provide employment to 114 million people. MSMEs also come from all over the country.
For India to be truly prosperous, Indian ambitions must be given wings to fly. With progressive government policies, a strong quality ecosystem, and a regulatory framework that has spared the Indian economy from the worst of the global economy, India is positioning itself to achieve quality self-sufficiency.
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Tags: business news in hindi, indian economy, indian startups, startup idea
FIRST POSTED: Feb 20, 2023 2:12 PM IST