1 April 2022, 10:04 PM

Startups are rewriting India’s growth narrative

Startups are rewriting India’s growth narrative

India has become the third largest startup ecosystem in the world after the US and China. According to the Economic Survey 2022 the government has recognised more than 14,000 new startups in 2021-22 against 733 in 2016-17. The total number of recognised startups in the country is now estimated at a huge 61,400. And not only in number of units, the startup ecosystem has expanded geographically too covering a vast area – as many as 555 districts had at least one new startup in 2021 against 121 districts in 2016-17, the survey claims.

In fact, 2021 was a breakthrough year for the Indian startup ecosystem coming through in the middle of a widespread deceleration in economic activities amidst Covid-19 pandemic. The startup sector has not only grown in numbers but has paved the way for a huge wealth creation opportunity. A report by Nasscom, conducted in coordination with research firm Zinnov, said that the start-up ecosystem witnessed a 2X gain in cumulative valuation in 2021 over 2020, with an estimate of $320 - $330 billion, demonstrating the sector's development and recovery throughout the pandemic.

The sharp increase in the valuation of the startup economy was reflected in the number of startups turning into unicorns last year. A record 44 Indian startups achieved unicorn status in 2021, taking the overall tally of startup unicorns in India to 85, with most in the services sector. The year also saw a spectacular rise in capital infusion in the sector.