Boasting about the Indian startup ecosystem, which is considered to be one of the top three in the world, Prime Minister Narendra Modi urged global businesses to set their foot in India and back the country’s startups. He assured best possible returns for their capital.
PM Modi pitched the Indian startup ecosystem, while delivering his keynote address at the third Future Investment Initiative (FII) forum in Riyadh on October 29. He said that “transformative technologies” such as artificial intelligence and genetics have been becoming an important part of people’s lives. Taking a note of that, India has integrated these across various segments like hospitality, healthcare, transportation, tourism and foodtech, among others, he added.
PM Modi also highlighted that India will be making big investments in the infrastructure segment. Through this, the government wants to have $1.5 Tn investment in infrastructure to boost amenities like unified power grid, gas grid, water grid, mobility card and optical fibre network.
“There is no room for capacity saturation. This sector, too, offers guaranteed returns,” Modi highlighted. He also added that besides infrastructure, other important trends are human resources, nature of work, environment and business-friendly government.
Moreover, PM Modi said that India will be working with Saurdi Arabia to diversify Indian economy and other aspects such as “healthcare, energy infrastructure and startups offered big opportunities for global businesses”.
The Best Of Indian Startup Ecosystem
As Indian startups continue to mature, investors from all around the globe have kept a close eye on them. Various venture capitalists(VC) firms have entered India and have been aggressively investing in Indian startups.
According to DataLabs by Inc42, the year-on-year (YoY) count of unique startups receiving VC investment in the Indian startup ecosystem grew at a rate of 19% between 2014 and 2018, whereas the Japanese startups ecosystem witnessed a growth of 9% annually.
Moreover, the VC firm establishments in India has surged 3x from around 35 companies in 2000 to 2009, to 107 between 2010 and Q3 of 2019.
Another report by Datalabs by Inc42 points out that between 2014 and Q3 of 2019, Indian startups acquired $55 Bn worth investment. Out of this $5.85 Bn was invested in the first half of 2019 across various sectors.
The indian startups are aggressively upgrading their products up to global standards to make a mark and stay relevant in the dynamic global market.
Modi, while speaking at the “Howdy, Modi” event held in the US in September, had also emphasised that India is currently technically developed enough to lead the world in the industry 4.0 revolution, which majorly relied on big data analytics, digital technology to augment and improve manufacturing.