India world’s third largest home for tech start-ups, according to ASSOCHAM
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A thriving start up culture
A recent study by The Associated Chambers of Commerce of India (ASSOCHAM) has established India as the third largest hub for tech start-ups in the world, with recommendations to strengthen and ameliorate the eco-system for the entrepreneurs of the country.
ASSOCHAM conducted a study with Thought Arbitrage Research Institute recently that asserted India as the world’s third biggest home to tech driven start ups, with around 4,200 start-ups in 2015. The United States occupies the first position with more than 47,000 start ups and the United Kingdom comes second with 4,500 start-ups.
The Information Technologies (IT) capital of the country, Bangalore, capital of South Western state of Karnataka, which is often nicknamed as the Silicon Valley of India, is host to around 26pc of the growing number of technology driven start-ups in Indiat, followed by New Delhi’s National Capital Region (NCR) with 23 pc and Mumbai, the capital of the Western state of Maharashtra, at 17 pc.
“The disruptive innovation in technology and process is creating newer Indian start-ups and foreign investors including some of the well-known venture capital funds are showing immense interest in these start-ups,” ASSOCHAM President Mr. Sunil Kanoria said.
Recommendations and observations were made by ASSOCHAM and Thought Arbitrage, in the study. These were based on the current education system as well as infrastructural support system in India, which lacks in many qualities required to sustain and encourage a booming start up culture.
A synthesis of Startup India (a campaign launched earlier this year that seeks to promote bank financing for start-up, to boost and encourage entrepreneurship) along with two other initiatives by the government of India have been suggested to boost the budding field of start ups. The two initiatives that were mentioned were Make in India (an initiative launched around two years ago that is aimed at strengthening investment in the manufacturing sector by multi-national and national companies) and Digital India (a campaign launched a year ago that wants to improve the digital infrastructure of India and promote e-governance).
Courses on entrepreneurial skills
Along with need for reform of pre-existing government initiatives, the report mentioned that encouraging fresh ideas without a fear of failure could be ensured by making tax exemptions for research and experiments. The ASSOCHAM-Thought Arbitrage study also reported that Indian universities could consider introducing courses on entrepreneurial skills. A Stanford University model was suggested, through encouragement of creation of small businesses in the educational campuses.
By bringing together the issues of education, investment and digitisation in the context of technology driven start-ups, this report has raised a relevant point. This could help in expanding and strengthening the eco system of start ups in India, while also would encourage further growth.To View the article buy our magazine