THIRUVANANTHAPURAM: Startups will play an important role in helping India become the third largest economy in the world, Chief Economic Advisor (CEA) to the Union government V Anantha Nageswaran has said.
Nageswaran mentioned that tier-2 and 3 cities, including Kerala's capital, have become key players in supporting the growth of startups in the country due to improved infrastructure and government policies, as per a KSUM release.
During his Leadership Talk at the Huddle Global 2023 organized by the Kerala Startup Mission (KSUM), the CEA highlighted that India, currently the fifth largest economy, is on track to become the third largest in the coming years.
"In fact, I will say 7-in-7 is the buzz slogan, that is 7 trillion USD economy in seven years. Seven trillion USD economy size by 2030 is possible if India maintains its present growth trajectory, and in that journey startup entrepreneurs are going to play an important role," he stated in the release.
He emphasized that the active involvement of startups in India in creating business models based on expanding physical and digital infrastructure will continue to drive efficiency, revenue, and economic growth for the country.
"The last decade has witnessed a remarkable transformation in the startup landscape in India, which has emerged as the third largest ecosystem globally, with over 1.12 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) across 763 districts.
"Among them, more than 110 are unicorns with a total valuation of around USD 350 billion," he added.
The CEA also noted that the country ranks second in innovation quality.
He highlighted that innovation in India spans across various sectors, with startups addressing issues in 56 industrial sectors, including 13% in IT services, 9% in health and life sciences, 7% in education, 5% in agriculture, and 5% in food and beverages.
Nageswaran also mentioned the significance of 49% of startups originating from tier-2 and 3 cities, which have become catalysts for change due to the business advantages in these areas enabling entrepreneurs to operate at lower costs compared to tier-1 cities.
"Besides improved infrastructure and proactive government policies, the availability of a technically skilled talent pool is a major advantage for startups to establish and thrive in tier-2 and tier-3 cities," he explained.
He commented on the historical perception that small towns were challenging for conducting business, but with enhanced internet penetration, improved physical infrastructure, and supportive government policies, this notion no longer holds true.
He also praised Kerala's startup journey as inspirational.
The CEA acknowledged that KSUM has been a driving force since its establishment in 2006 in promoting change that propelled the state to the forefront of the global startup arena.
KSUM, the Kerala government's agency for entrepreneurship development and incubation activities, has over 4,000 registered tech startups, 63 incubators, and 10 lakh square feet of incubation space, positioning itself as one of the world's premier business incubators.
The fifth edition of Huddle Global, India's largest beachside startup conclave, took place from November 16-18 and was organized by KSUM at Adimalathura beach, near Vizhinjam.
The event showcased cutting-edge products from emerging sectors such as robotics, Artificial Intelligence, Machine Learning, Augmented Reality, Virtual Reality, life sciences, space tech, blockchain, IoT, e-governance, fintech, healthtech, agritech, edutech, and SaaS from across the country.
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