Importance of startups in boosting the Indian economy

When top global investors look at India today, they see a country full of potential. A large population, sizable untapped markets, diverse cultures, spending habits; all this supported by very entrepreneur and enterprise friendly government initiatives, has meant that the Indian economy is attracting big ticket investors like a magnet. 
The point to be noted here, is that these investments are being made in nimble-footed, quick thinking, sharp minded compact teams, heading new age businesses called startups. 
Let the word startup not fool anyone, because these enterprises are being run by brilliant minds who are seeking to transform the way we educate ourselves, care for our lifestyle, manage our finances, plan our travel etc. They are helping us do a lot more by blending cutting edge technology with smart intuitive processes. CoffeeMug was created to make the startup environment more approachable for budding entrepreneurs. It is a professional networking platform with some of the top business acumen.
With so much excitement and so much promise, today the question that comes to mind to an outsider or a first time entrepreneur is: what is the startup ecosystem in India looks like? 
What is the startup ecosystem in India? 
Domestic startups closed investment deals close to $12 billion in Q1 2022 and India zoomed ahead to become the world’s third largest startup ecosystem. Startups are flourishing and the pace from prototype to market has accelerated impressively.
Facilitating this rise, is the timely convergence of big ticket risk capital funding and the roll out of regulatory and business conducive initiatives. Another barometer of the stupendous success of the startup sector in India is that it is expected to have over 100 new unicorns in 2022. In fact, one unicorn has been added every five days within the first two months of 2022. 
Verticals like Fintech, HealthTech, EdTech, cleantech, B2B SaaS, e-commerce, MediaTech, Agritech, FoodTech, artificial intelligence, nanotechnology, SpaceTech, web3 technologies and more, all are influencing business and lives in a big way and there can be no disputing their impact of startups on Indian economy. In fact, many believe that it is a clutch of startups that would actually fuel India’s forward march to becoming a $5 trillion economy.
The importance of startup in India can be gauged from the fact that startups first and foremost create innovative and effective solutions, easing life and work. They scale up quickly meaning more jobs are created across all work levels. Indian SaaS companies are expected to create half a million new jobs by 2030, travel and hospitality industry 52.3 million jobs by 2028 and the FoodTech industry 9 million jobs by 2024. 
With their cutting edge tech, startups become hubs for outsourcing, translating into an inflow of valuable foreign exchange. Fintech startups are fast bridging the micro-credit gap in the country by offering digital solutions at low costs, to the thin-file customer segment. MSMEs are also leveraging the advantages of financial products created by new age FinTech startups.
Tier II and tier III cities too are experiencing more opportunities and moving towards a better standard of living. Startups contribute substantially to the GDP of India too. Critical sectors like HealthTech, Fintech, EdTech and cleantech have all created new business models that connect to even the remotest customer, ensuring social parity in a way.    
There is an alternative school of thought that says that, with larger and well established corporate houses, already an integral part of the Indian business landscape and whose contribution of the GDP is notable, then why India needs startups?  
Well, they are needed to, address the growing needs of a young population.
The fact is that India has a young population that is digital savvy and open to new ideas, experiments and innovations. This population universe which forms a large chunk of the economy, are gainfully employed and have disposable income. It is they who are going to be the moving force, which will drive growth consistently across business verticals. 
Facilitate innovation 
It is not just new age businesses but even traditional industries could do wonders by adopting the innovative technology, systems and processes that startups bring with them.
Move capital investments
Investors too need startups to put their money to work. What’s more, they can even get fabulous ROI for investing in startups with promising and sustainable ideas.  
Make life simpler
Everyone aspires to and needs a way to make life simpler and convenient. Things need to be done from the convenience of home, travel needs to be planned on a handset, food delivered, all this is possible with the ideas startups have come up with. 
Harness the intelligence capital that India possesses
India is considered to be the home to the best minds in IT, AI, VR, deep tech and more. A startup is the best way for the talent to come up with path breaking technologies and innovations.
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