Decoding BHASKAR — Inside Indian Govt’s Mission Of Unifying The Indian Startup Economy

India’s startup ecosystem has been recognised as a hotspot for innovation and value creation. The ensuing environment has brought together entrepreneurs, investors (both individual and institutional), mentors, academia, MSMEs and corporate houses and government stakeholders to work on ideas, technologies and funding. However, the primary challenge lies in boosting the dynamics among these interdependent stakeholders for the best possible outcomes.

Consider a dorm room startup that has successfully created a prototype and now requires capital and paying customers to enter the target market. The founders must approach risk-happy angels or venture capitalists keen on supporting early stage businesses in that niche. But it is easier said than done unless one has access to a suitable network or relevant information about the enablers.          

The same holds good for the entire cluster. Unlike industrial leviathans, the overarching structure of the new-age system is highly dynamic. Here, businesses operate across different life cycles, from early to growth and late stage, and span many sectors, including ecommerce and fintech to deeptech, regtech and more. Therefore, accessing the right resources at the right time is critical to achieving exponential growth for the ecosystem.

As Gernot Grabher and David Stark pointed out in their research, “the unit of entrepreneurship is not the isolated individual but networks of actors”. Hence, a collaborative framework and seamless access to critical data are needed for equity and efficiency, the key elements of growth. 

Recognising this need, the Indian government is setting up BHASKAR (Bharat Startup Knowledge Access Registry), a centralised data repository and feature-rich platform to support “networking, collaboration and the efficient exchange of knowledge and resources across the entrepreneurial value chain”. Piyush Goyal, the Union minister of commerce and industry, announced the initiative at the Startup Mahakumbh in March 2024.

Bharat Startups Are Rising, But More Help Is On Their Way

Indian startups are likely to create 50 Mn jobs and add $1 Tn to the economy by FY30, per a CII-McKinsey report. The ecosystem also contributed 10-15% to the country’s GDP growth between FY16 and FY23, and their GMV of exports could jump 20-23x to $140-150 Bn by FY30 from $6-10 Bn in FY23, the report stated. 

Interestingly, this rapid job and wealth creation is no longer confined to traditional startup hubs across metros/Tier I. Last September, the commerce and industry ministry told the Rajya Sabha nearly 50% of Indian startups hailed from Tier II and III locations, underscoring that the startup wave gradually permeated every nook and cranny. 

The fact that the number of startups recognised by DPIIT (Department for Promotion of Industry and Internal Trade) soared to more than 1.4 Lakh in 2024, up from 300 in 2016, confirms that decentralised startup growth is taking centre stage, and the entrepreneurial spirit is rising across Bharat — from just the top three hubs (Delhi, Mumbai and Bengaluru) to emerging hubs like Chennai, Hyderabad, Pune, Kerala and the likes.

The growth of these regional hubs away from top locations helps create unique entrepreneurial cultures and business models. But there is always a risk that VCs may not interact with this new breed of startups, even though entrepreneurship varies substantially across metropolitan regions. In such cases, an initiative like BHASKAR plays a crucial role.

Thanks to its comprehensive, centralised compilation of startup data, BHASKAR will provide adequate visibility to underrepresented businesses. Startups, too, can tap into a rich data pool for effective networking and collaboration, leading to real-time impact. 

“When I started my journey with DPIIT, I felt there was a need for a platform that could connect the ecosystem at one place. Through Startup India, we have been recognising startups on the basis of the skillsets they possess. But what about those startups that are just entering into the ecosystem? With this registry, I want people who have made it in the ecosystem to continue being a part of it and mentor up and coming startups,” said Sanjiv, joint secretary at the Department for Promotion of Industry and Internal Trade (DPIIT) at an Inc42 event in March this year.

As the initiative is all set to unlock India’s dormant entrepreneurial energy, it will ensure the rise of startups beyond metros and boost participation from all over the country. BHASKAR’s inclusive approach will benefit all stakeholders and embody India’s spirit of thriving together.

How BHASKAR Aims To Drive Startup Growth

At its core, BHASKAR features an integrated data goldmine that covers startups and their founders, investors, incubators and accelerators, academia and government organisations. The free-to-use repository will do away with existing data silos and make crucial information readily accessible. This means startup data banks across ministries, government departments and other support organisations will be integrated with the BHASKAR platform. 

The all-new database with improved searchability will also ensure focussed networking and seamless connectivity among like-minded stakeholders.

BHASKAR also offers ecosystem analytics and quantitative data. This helps explore micro and meso levels to monitor how well the elements of the ecosystem connect for cross-organisational collaborations and strategic resource allocations. Stakeholders can also monitor progress, identify areas for improvement and make insightful decisions.

All entities willing to join BHASKAR’s one-stop repository must register on Startup India, a portal managed by DPIIT. After successful enlisting, each member gets a unique ID and a category-specific tag to avoid data duplication. 

The new initiative aims to broaden the startup resource pool, from funding and market linkages to incubation support, networking, mentorship and more, therefore creating an inclusive and diversified ecosystem. This will help implement innovative ideas, enable vital knowledge-sharing and fructify jointly held initiatives.

Indian Government Boosting Startup Growth

India’s startup scenario is rapidly maturing alongside global leaders like the US and China. And BHASKAR is a crucial extension of its ongoing efforts to empower emerging startup hubs nationwide. The project will offer a qualitative and quantitative overview of the ecosystem to connect startups, enablers and the government to address gaps and drive growth.

In a major boost for startups, the Economic Survey (2023-24) highlighted the Indian government’s commitment of more than INR 10.5K Cr to alternative investment funds (AIFs) under the Fund of Funds for Startups (FFS) scheme. This has already resulted in investments worth more than INR 18K Cr by the end of FY24.

With the rollout of BHASKAR, these unifying efforts will improve the growth prospects of less prominent regions and demographics and nurture innovation across the nation, bringing India closer to its vision of becoming a $5 Tn economy.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.