The Indian startup ecosystem has grown rapidly in recent years. The sector has established itself as the third-largest in the world equipped with more than 140,000 startups and 135 unicorns in the country. However, Amitabh Kant, India’s G20 Sherpa and former CEO of Niti Aayog, said that more Indians need to invest in domestic startups to sustain the momentum. In the current scenario, it is learned that 70% of the fund comes from abroad and this indicates a significant reliance on foreign capital.
India can reduce the dependency on foreign funding with the increase in domestic investment. This will help in keeping the benefits of startup success within the country. This will thereafter fuel economic growth and simultaneously strengthen the development of local technologies tailored to India’s unique needs. The government has removed angel tax this year and this is a positive step towards attracting more investment in the startup ecosystem. Kant said that such measures aim to create global champions within India.
Kant highlighted the importance of expanding growth narrative beyond just startups. He has envisioned a future in which micro-companies can evolve into small enterprises, small businesses grow into medium-sized ones and medium companies expand to become large corporations. This growth journey is important to realizing India’s Vision 2047 that aims to make the country a developed nation.
Kant said that every Indian must be committed to hard work and the focus should be on improving education as well as healthcare. Indians can play a good role in accelerating growth and to ensure as well that India becomes the third-largest economy in the world.
