Indian startups can look forward to an ‘India techade’
The last 9 years have witnessed a dramatic transformation in various aspects of India, including its political culture, governance, economy, and confidence in its culture and heritage. After a decade of economic destruction, corruption, cronyism, and appeasement under the United Progressive Alliance, India has emerged as one of the world’s top five economies. This is a significant shift from its position as one of the fragile five economies at the end of the Congress-led coalition’s 10-year rule in 2014.
Notably, the Indian economy has undergone both qualitative and quantitative changes. Previously dominated by a few, it has now expanded rapidly, accommodating a wide range of value-adders, from legacy industries to startups and micro-entrepreneurs. One standout example of this growth is India’s digital economy, which has grown from 4-5% of the GDP in 2014 to over 11% today, with projections indicating it will reach 20% of GDP by 2026. Startups play a crucial role in driving this growth, with the digital space experiencing significant investment and witnessing the emergence of 111 unicorns in various sectors, such as direct-to-consumer (D2C), consumer internet, digital public infrastructure (DPI), and software-as-a-service (SaaS).
The environment for aspiring entrepreneurs has transformed from being hostile to one that fosters innovation. Startups have succeeded in making India one of the most vibrant innovation ecosystems globally, with young Indians reshaping the country’s business landscape. Encouraging their ideas and showcasing their capabilities has been a cornerstone of Prime Minister Narendra Modi’s vision for an ‘India techade.’ This vision aligns with the rapid expansion of India’s tech and innovation ecosystem, which has gained momentum due to the government’s policies and their confidence in the Indian youth.
Looking ahead, the next wave of growth in India’s tech sector is expected to be even more exciting. Over the past few years, initiatives have been introduced to encourage startups in emerging areas such as electronics, semiconductors, artificial intelligence (AI), and quantum computing. These initiatives aim to transform the tech sector from one built on talent cost arbitrage to one focused on consumer internet, direct-to-consumer businesses, and intellectual property (IP)-driven value addition. Several programs and institutions have been established to support this transformation.
Among these programs is SemiconIndia Future Design, which catalyzes startups involved in designing next-generation semiconductor chips. The Digital India RISC-V (DIR-V) initiative leverages the global RISC-V open-source ISA architecture to build IP and devices and make India a vibrant ecosystem for RISC-V technology. The India Semiconductor Research Centre (ISRC) is another crucial institution that conducts cutting-edge research in advanced process, compound semiconductor, system packaging, and chip design.
Furthermore, the Digital India Future LABs, anchored by the Centre for Development of Advanced Computing (C-DAC), provide a platform for startups to focus on electronics and digital product design in fields such as automotive, industrial/IoT, compute, telecom and wireless, and strategic electronics. These labs enhance domestic capabilities and open up opportunities for startups in these sectors.
The Indian government also recognizes the significant role of artificial intelligence (AI) in the digital economy and is developing a comprehensive IndiaAI program to support AI startups, research and development, and talent development. This program aligns with Prime Minister Modi’s vision of making AI in India and making AI work for India.
Additionally, Indian startups have opportunities in the digital public infrastructure (DPI) space globally, with India leading the G20’s global DPI repository.
Prime Minister Modi has set ambitious goals for India’s future as a developed country by 2047, with a focus on emerging technologies such as electronics, semiconductors, AI, Web3.0, and quantum computing. With startups at the forefront of innovation in these areas, India is positioned to shape and build the India Techade and Viksit Bharat (developed India) in the most exciting phase of its independent history.
As we celebrate National Startup Day and the achievements of Indian startups thus far, we eagerly anticipate the progression of the next wave of startups that will shape India’s future as a dynamic hub of tech and innovation.
In conclusion, the Indian startup ecosystem has flourished in recent years, contributing to India’s economic growth and transformation. With continued government support and a thriving innovation landscape, Indian startups are poised for success in the techade era.
