India has been taking significant action to foster a healthy ecosystem for startups.
India’s efforts have been paying off, as the country has become one of the world’s leaders in tech startups. In 2016, the government launched “Startup India,” the most substantive of the country’s recent efforts to promote startups, particularly in financial technology (fintech) and other digital industries. This initiative has injected more than one hundred million Indian Rupees into the startup ecosystem. This funding has supported business incubators, new labs, tax incentives, and a simplified process for setting up new businesses.
Indian Prime Minister Narendra Modi inaugurated the fifth Indian International Science Festival via video on Tuesday. It is during this inauguration that Modi announced that India is now the world’s third biggest startup economy. Indeed, in the last three years India has jumped from 81st place to 52nd in the Global Innovation Index. The past three years have seen thousands of startups achieve success due in large part to financial aid and incentives provided by the government. Various policy changes and economic changes have also helped India’s startup economy move forward.
According to a recent Observer Research Foundation report, India’s perceptions towards entrepreneurship have also shifted. The combination of government aid, incentives, and a cultural shift that has made entrepreneurship look cool and worthwhile have paid off in improving India’s business outlook and it’s participation in the global economy.