Indian Economy & Startups- Generating Business & Jobs: Indian economy is world's seventh largest economy by nominal GDP. Amongst all the sectors contributing to the economy, service sector has its largest share and most of it comes from the IT. The expansion of IT sector has been led by the innumerable start-ups in the economy.

1. Indian Economy & Startups- Generating
Business & Jobs
With the gen-next cool trend to start working on
new and innovative ideas, India is all set to
outperform all other nations on the world stage
in the years to come. Setting up of small
businesses by these young entrepreneurs is
definitely going to boost the Indian economy in
the near future. India is a home for almost 3100
startups starting per year standing just behind
US, UK and Israel according to the NASSCOM
report of 2015. If the growth is continued on the
same pace then it is expected that Indian tech
startups will generate almost 2.5 lakh jobs in the
next five years.
Indian economy is world's seventh largest economy by nominal GDP. Among all the sectors
contributing to the economy, service sector has its largest share and most of it comes from the
IT. The expansion of IT sector has been led by the innumerable start-ups in the economy.

2. India has celebrated its 68th Republic Day in which Ministry of Communication, information
and Technology spoke about the current scenarios in IT sector and how this scheme would help
in growing the Indian economy. India stands at fourth position in world's technology start-up hub
wherein 3100 tech start-ups accounted as per the Economic Survey 2014-15 (reference number).
Well, the numbers are very great but sustaining in the market over long run is important too.
Initially, India was considered as the market for providing cheap labor to the world and for
export of Indian services in the field of IT. Due to this India has witnessed low product
development and innovation in the past. But, still it is not too late and the culture of startups has
started in India in the recent past. It has already started bearing fruits and is all geared up to
benefit the Indian economy in the long run.
These days, a lot of tech start-ups are emerging and targeting the special needs, not only of the
customers but for businesses as well. Be it e-commerce, health & fitness, travel, food &
beverages, software solutions, real estate, groceries, transport, logistics etc. Entrepreneurs are
striving to find a connect between the problems and the customers. Apart from these above
mentioned major industries, Entrepreneurs are also unearthing the niche which are very
quotidian and prevalent in day to day activities and providing the panacea through the most
common technologies- phone and desktop. Talking about the business models that entrepreneurs
are constructing, the preponderance of the entrepreneurs are acting as a middlemen between the
service providers and the customers. The numbers are lesser wherein consumables are being
directly provided from the entrepreneurs' part. The ideology behind this could be the risk level
entrepreneurs want to take. This model would be on the right path as running a business in this
cluttered market is a very hard nut to crack. The other aspect of this would also be the only idea
that strikes into their mind while preparing business plans.
The influx of young ideas are working parallel to the needs of the young population of India. As
India is known as "Youngistan" (nation of young), identifying the needs and catering them
becoming much more easier for entrepreneurs. Despite of the fact that ideas are a good problem
solver for people, most of the start-ups are failing to sustain in the economy. Poor business
model, ineffective revenue model, loose marketing strategy, choosing a wrong team are few
reasons for it. Some say that they have lost the first mover advantage in the marketplace and
therefore standing flamboyant in the market is burdensome for them, but it is not like that. In
India, the first thing strikes to customers about e-commerce is Flipkart, wherein the term e-
commerce coined in India 8 years back when Flipkart was launched. Yes! It is about
"indiaplaza.com" which was launched in 1996 by the father of e-commerce in India Vijay Shah
when dot com was in boom. After performing a decade, it was a bummer for them to manage the
funds which led them to pack it in. So, it's all about the strong vision that one must couple with
the idea and the business. Result, we can see that Bansal’s are known as the business booms in
India.

3. Earlier in economical terms, the whole India was to be considered as an outsourcing company
wherein all the knack was getting utilized by the other companies. But now a days, startups have
given a good picture to Indian economy and its image. Boosting the economy in terms of
technology, services, wealth are the major counts, however, these startups have created heaps of
jobs and opportunities in India. As per the NASSCOM India Startup Report, 80000 jobs were
created by the startups in the economy. Although, the unemployment rate of India is still high in
comparison with few developed countries around the world but yes, in comparison with the
Indian stats only, we have improved a lot. A big thanks to all the technology inventors and
creators who have made life much more easier in terms of each and everything.
Considering the importance of role that the Indian startups are all set to play in the growth of
Indian economy, Indian government is also taking several steps to build an environment which is
suitable for startups. In the Union Budget of 2016, government has established a process or a
mechanism known as Self Employment and Talent Utilization (SETU) to support all the
aspects of startups right from their seed financing stage to their growth stage. Also, government
is also setting up ‘innovation labs’ at various places which are similar to that of ‘incubation
centers’ in large national and foreign universities. It is also anticipated that government may roll
out a Rs. 2000 crore fund to provide seed capital to startups related to IT and biotechnology. The
amount of income and the huge number of jobs that can be created by facilitating startups, even

4. the market regulator Securities and Exchange Board of India (SEBI) has relaxed some rules to
facilitate the flow of funds from the market to the startups.
Thus, startups in India are not only providing the convenient services with ease of technology,
they are boosting to the Indian economy by creating employment opportunities, more
transactions into the economy, digitize the ideas and concepts. Hope, entrepreneurs will come up
with more ideas that will connect with economy as a whole.
--
Mufaddal Nullwala.