Dr. Jitendra Singh
The number of startups in India was not more than 400 in 2014. But this figure jumped to a whopping 70,000 by this year. This could not have been possible without PM Modi’s ability to make decisive policy decisions, including in no-go areas of the past. The most striking example of the latter is the unlocking of the space sector/Isro and opening it up to private players, which was unimaginable even a decade ago. The PM gave a momentous call for ‘Startup IndiaStandup India’ during his Independence Day address from the ramparts of Red Fort on August 15, 2015, which sent a message down the line that the priorities of the government headed by him were witnessing a departure from the status-quoist approach of the past. It is this enabling environment that has led to a vibrant startup movement across the country.
Fuelling the startup boom
The resultant vibrant and mutually supplementing ecosystem has become a role model for the rest of the world. In fact, India today ranks third in the global startup ecosystem, growing at an annual rate of 12-15%. The sector has become a significant national contributor to generating wealth and employment in the country, as well as propelling innovation and technological development across key development sectors. A detailed ‘Startup India Action Plan’ has been rolled out to support and empower startups in the country by introducing 19 action points focussing on (a) handholding support to entrepreneurs/startups; (b) creating funding support and incentivisation mechanisms for startups; and (c) supporting industryacademia partnerships and providing necessary incubation support for startups.
The Indian startup ecosystem has been going from strength to strength. Even the Covid pandemic, which had a substantial impact on FY-2022, could not dent the funding momentum for Indian startups.
In fact, the country has seen 102 startups being elevated into the $1 billion-plus valuation club. Out of these 102 unicorns, 14 have been upscaled in JanuaryMarch this year, which gives strength to the belief that 2022 could be another year of unicorns.
Covid-proof and reaching for new heights
The department of science and technology (DST) has played a critical role in shaping the startup culture in the country. Its flagship programme Technology Business Incubator (TBI) with its current network of more than 160 incubators has been successful in creating a strong societal impact by addressing challenges faced by the country. The network, during the Covid pandemic, played a critical role in identifying and supporting startups having products and services to address the problems brought on by the pandemic. DST also set up the Seed Support System in the TBIs for providing much needed early-stage funding to startups. The number of supported programmes and the budget spending for the programme have quadrupled during the past five years. Under the National Initiative for Developing and Harnessing Innovations (NIDHI) TBI programme, over the last five years 105 incubators have been set up across the country. The network of incubators has supported more than 12,000 startups (7,200 physical and 4,800 virtual). This startup network has 1,500-plus womenled startups, and more than 900 patents have been filed by them. Overall, the startups have produced more than 1,15,000 new jobs.
Giving full play to budding entrepreneurs
Some of the noteworthy milestones of DST’s programme on innovation and entrepreneurship are:
* First government agency to establish institutional mechanisms such as TBI to support technology based entrepreneurship.
* Enabling innovation ecosystem policy framework:
* Service Tax exemption to both incubators and in cubatee.
* Permission to hold equity by DST-supported incubators (not for profit legal entities) ie, converting government grants to equity subscription.
* CSR funding for incubators.
* First government agency to offer programmes in PPP mode for scouting and supporting innovation and startups:
* First government agency to partner and create Sebi-registered PPP innovation fund. ? First government agency to partner with international government (bilateral) and multilateral agencies for innovation and entrepreneurship development.
* DST-pioneered training and capacity building of incubation managers with exposure to global best practices.
* DST-backed TBIs were first to get support from multilateral international developmental agencies like UNDP, infoDev etc. In conclusion, the Indian startup ecosystem is progressively evolving as evident from India’s continuous rise in the global innovation index as well as ease of doing business ranking over the last five years. The whole ecosystem is providing a platform to aspiring youths to leverage their potential to reinvigorate, revitalise and further strengthen the indigenous ability of industries in the given geopolitical landscape.
(The author is Minister of State, Science & Technology)
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