Speaking at the event on Friday, Kant said startup founders and their dynamic teams are showing unparalleled energy to seize every growth opportunity and disrupt traditional ways of doing business across industries. According to him, low-cost internet data plans, a talented pool of professionals, widespread phone usage and policy support given by the government have aided in the growth of the startup.
Startups play a vital role in Prime Minister Narendra Modi’s economic growth strategy as this segment will create new skilled jobs and help address the challenge of jobless growth and loss of low-skilled jobs thanks to automation in the industry.
Kant sees startups as a great job-generating sector, even as they pave the way for India to enter sunrise sectors of growth, be it battery production or electric vehicles, which the government has to offer. Providing support with schemes like production-linked incentives. “The Indian startup movement has a very unique energy, vibrancy and dynamism, which you will not find in any established player,” Kant said. The startup founders, their dynamic team and their financiers are the real change-makers.
According to Kant, the degree to which innovation is happening in the startup segment and the pace of growth is very high. “The number of domestic patent registrations has increased from 12,000 in 2015-16 to 25,000 in 2020-21. This shows that innovation has evolved in a big way,” he said.
Furthermore, Kant said that many startups are increasingly getting unicorn status.
“In the last three months, we made 11 unicorns. Actually, we are making 3-4 unicorns every month. They are solving many of the challenges that India is facing.”
“For them, the market is not just 1.3 billion people. As soon as you address these problems, you are getting a market for the next 5-6 billion people who will move from poverty to middle class.”
According to Kant, the pace of the ‘Startup India’ initiative, which started around 2016, has exceeded expectations. “It has been a phenomenal story. Over the years, the Indian startup ecosystem has not only matured, but has grown manifold, Kant said.
“In 2016, there were only a few startups. Very limited support was available in terms of investments, incubators and accelerators, and the scenario was very different at the time. Since then, we have emerged as one of the most vibrant ecosystems in the world,” Kant said.
“We have grown – many say the third largest – but I truly believe we are the second largest (startup) ecosystem in the world today. To date, we have close to 67,000 startups that are officially Accredited by the Department of Publicity and Internal Trade. It has been a tremendous journey as concerted efforts have been made to provide all the institutional support that is important to lay the foundation of this ecosystem built over the years,” Kant said.
Prime Minister Modi said in January that startups are changing the demographic characteristics of today’s businesses as 44% of recognized startups have female directors and a large number of women are working in them. Also, 45% of startups are in small towns, acting as brand ambassadors for local products.
Support given to startups includes a simpler registration process, tax incentives for three years, eligibility to participate in government tenders and reduced patent filing costs. Kant said India’s digital infrastructure has helped cement the country’s position in the global startup landscape.
“This digital infrastructure is important. The lowest cost data plans in the world are in India. This has enabled a higher level of penetration of smartphone devices. Digital connectivity has given a huge boost to the startup movement in India,” Kant said.
He said public digital infrastructure facilities such as Aadhaar authentication and Unified Payments Interface (UPI), an instant real-time payment system developed by the National Payments Corporation of India, allowed governments, businesses and startups to offer a wide range of financial services Is.
“This is the practice of cashless transactions. Taking a look at the Unified Payments Interface, digital UPI payments have become a way of life for millions. Eighty percent of transactions in the Unified Payments Interface are actually peer-to-peer. This reflects the replacement of cash in India in a major way.”
With the resolution of the payment problem, the industry’s focus has shifted to lending and then to offering new services in personal finance, wealth management, investing and trading. He said that many top class startups have come up in this area.
“What we are seeing now is the rise of financial products that target more complex sectors—for example, new insurance tech companies. Startups are simplifying insurance a lot,” said Kant, who is leading the fintech ecosystem leap. It is ready to be deployed as it fulfills the aspirations of over 1.3 billion Indians.
“The entire process of vaccination has been digital. As we now move towards a digital health identity for every Indian, you will have a unique platform behind which many of you will innovate. We will devise new ways to solve the health challenges in the country.”
Kant said, “The Indian startup ecosystem can solve any challenge that India faces today. I am sure startups will enter many new and emerging areas and make India a global champion in all these areas.”
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