Challenges and opportunities for startups in India

1. Challenges and opportunities for entrepreneurs
B Satyanarayana
Visiting Professor
Institute of Aeronautical
Engineering

2. Let us begin with Opportunities for budding
entrepreneurs:
2022-2026 is considered golden period for people starting their
entrepreneurial journey in India , as never before opportunities are
knocking their door.
As economy is booming ( India became 5th largest economy in the
world with GDP of 3.75 Trillion and soon becomes 3rd largest
economy in the world with 5 Trillion US dollars (next only to USA
& China )
The Global Innovation Index (GII) ranks India at 40th position in
2022 (up from 81st in 2018)
Opportunities for Budding entrepreneurs

3. Unicorns in India

4. 1. Electronics
2. Pharma
3. Software
4.Agriculture
5.Automobiles
Which sectors are growing at faster rate ?

5. Electronics on explosive growth in India
With Smartphone Exports Over $11 Billion, (Rs 90,000 crore), India On Way To Become
Global Mobile Device Leader.
Apple is estimated to have clocked 50 per cent share with export of 'made in India'
iPhones worth $ 5.5 billion, about Rs 45,000 crore.
Total electronics exports have also grown by 58 per cent to Rs 1,85,000 crore
(LCD display units etc..)
Samsung accounts for about 40 per cent share with export worth Rs 36,000 crore.
Projections for 2025-26
The sector to reach $300 billion(2400,000 Cr) worth of electronics manufacturing
with $ 120 billion expected to come from exports. Mobile phones share is $50 billion.

6. The pharmaceutical industry is to reach $65 (520,000 Cr) by 2024
And to $130 Bn (1040,000 Cr) by 2030.
India supplies over 50% of Africa’s requirement for generics,
~40% of generic demand in the US and ~25% of all medicine in
the UK.
India also accounts for ~60% of global vaccine demand, and is a
leading supplier of DPT, BCG and Measles vaccines. 70% of
WHO’s vaccines
Pharmaceutical sector growth in India

7. The Indian Pharmaceuticals industry plays a
prominent role in the global pharmaceuticals
industry. India is ranked 3rd worldwide in the
production of pharma products by volumeand 14th
by value. The sector is the largest provider of
generic medicines globally,
occupying a 20 per cent share in global supply by
volume, and is also the leading vaccine
manufacturer globally with a market share of 60
per cent. The performance of pharma exports has
been robust, sustaining positive growth despite the
global trade disruptions and drop in demand for
Covid-19-related treatments. The cumulative FDI
in the pharma

8. IT industry growth in India
I T relative share to India’s GDP is around 7and 8
percent in FY2021-22. The country's cost
competitiveness in providing I T services, which is
approximately 3-4 times cheaper than the US.
India’s I T-BPM industry (excluding e-commerce) is
expected to grew by 15.5% to reach at USD 227
billion, including exports of 178 USD Billion in FY2021-
22 (E).
The I T/ Software industry is employing 5.1 million
professionals, an addition of 4,45,000 people over FY
2021-2022 (E). Women employees account for 36%
(1.8 million) share in total industry employee base.

9. Software exports growth in India
Software

10. Agriculture growth in India
Apart from meeting domestic requirements, India is net exporter of agricultural
products with exports touching $50.2 Bn in FY 2022-23.
The total kharif food grain production in the country is estimated at 149.9 million
tonnes ,although, the area sown under paddy was about 20 lakh hectares less
than compared to 2021.
It employees 40 % population in India .

11. 5.Automobiles & EV
Annual EV sales will reach 4 million by 2025 and 10 million by
2030.
Sector GDP has risen to about 7.1% now from 2.77% in 1992-93.
Direct and indirect employment to over 19 million people.
Two-wheelers and passenger cars accounted for 77% and 18% market
share .
Export of automobiles increased from 4,134,047 in 2020 to 5,617,246 in
22.
India aims to double industry size to Rs. 15 lakh crores by end of year
2024.
FDI inflow of $33.77 billion from 2000 to 2022 ( 5.48% of the total FDI
Automobile & EV sectors :

12. 5.Automobiles & EV
Annual EV sales will reach 4 million by 2025
and 10 million by 2030.
6.Digital marketing and social media
( 50 crore users)
7. Renewable energy
( set to reach 500 MW by 2030)
8. Tourism
( from $28.9 billion in 2018 to $50.9 billion by 2028).
Can create 130 million jobs by 2030( 30.5 million foreign visitors)
Other sectors are which are growing includes :

13. Future technologies with huge growth potential

14. Hydrogen Fuel cell
Fuel cell is a device that converts energy stored in
molecules into electricity through an electro-
chemical reaction. Anode and cathode are
separated by an electrolyte membrane,
Hydrogen enters the fuel cell via the anode. Here,
hydrogen atoms react with a catalyst and split into
electrons and protons. Oxygen from the ambient air
enters on the other side through the cathode.
The positively charged protons pass through the
porous electrolyte membrane to the cathode. The
negatively charged electrons flow out of the cell and
generate an electric current
In the cathode, the protons and oxygen then
combine to produce water.ater.

15. Why Hydrogen
For India, to achieve net zero by 2070 Hydrogen plays vital role. At present India’s
$3.75 trillion economy needs 1,650 billion units (BU) of power, made from nearly 400
GW of capacity. Of this, green electricity is only 17%. When the economy touches
$5-7 trillion in the next decade, it will need at least 3,000-4,000 GW. Further, at
current rate, the energy import bill will triple by 2040. Net zero emissions by 2070
will require 5,630 GW solar capacity, 99% reduction in coal use between 2040 and
2060 and 90% fall in crude oil consumption between 2050 and 2070. By that time,
green hydrogen should meet 19% of industry’s needs, and India requires $10 trillion
(₹750 lakh crore) energy investments including 8.4 Trillion for augmenting RE & $1.5
trillion will be required for creating a green hydrogen ecosystem in industrial sector.
23 MT hydrogen demand by 2050. India’s current output is 6.7 MT, produced mostly
from natural gas through steam-methane reforming process .

16. Demand of Hydrogen

17. UN sustainability Goals
17

18. Predicted situation in 2030
The world's population will rise from 6bn to 8bn (33%)
Demand for food will increase by 50%
Demand for water will increase by 30%
Demand for energy will increase by 50%
1.Can 9 billion people be fed equitably, healthily and sustainably?
2.Can we cope with the future demands on water?
3.Can we provide energy to the growing population coming out of poverty?
4.Can we mitigate and adapt to climate change?
5.Can we do all the above & preserve biodiversity and ecosystems?

19. .

20. How much funds are required to achieve net zero by India ?
20

21. Net Zero is it curse or opportunity ?
The transformation of the global economy needed to achieve net-zero
emissions by 2050 would be requiring $9.2 trillion in annual average spending
on physical assets $3.5 trillion more than today.
To put it in comparable terms, that increase is equivalent to half of global
corporate profits and one-quarter of total tax revenue in 2020.
Innovation helping net Zero would be having Billion Dollar opportunity.

22. The countries with no of STEM(Science, technology, engineering and Maths graduates

23. Support systems for startups in India
Govt of India has no of incentives for startups and
entrepreneurs.
1) Faster & low cost IP protection
2) Easy loan process
3) Seed fund & mentoring
4) Tax concessions
5) Certain products are reserved for startups
6) Can take a break in academics for incubation
7) No restrictions on minimum attendance

24. NEP National education policy support system

25. Agencies supporting Startups in India

26. Top 16 schemes from Govt for startups

27. What comprises Clean tech echo Innovation system?
27

29. Reasons for
failure of
startups

30. 5/8 failed
startups
belongs to
Edu tech in
2022

31. 31