Prime Minister Narendra Modi urged the global businesses to back up Indian startups on Tuesday while delivering a speech at the third Future Investment Initiative forum in Riyadh.
PM Modi, while boasting about the ecosystem of Indian startups, which is considered to be in the top three in the world, assured the best possible capital returns for their businesses. He also pitched for greater mobility of the workforce across borders so that the nations can make the best utilization of the emerging opportunities.
While talking about startups in India, Modi said that taking a note on the rise of “transformative technologies” like AI and genetics, India has integrated such tech across various segments such as healthcare, hospitality, tourism, transportation, and food-tech, among others.
India would be working with Saudi Arabia in an effort to diversify its economy, and India’s healthcare, energy infrastructure, and startups offered big opportunities for global businesses. The government desires to have a $ 1.5 trillion investment in the infrastructure sector to assist in boosting amenities like a unified power grid, gas grid, water grid, mobility card, and optical fiber network.
Startup India promoting startups in India
Startup India is a government initiative that promotes the startup culture in India that assists in employment generation and wealth creation. The initiative, launched in 2016, has seen significant growth in the number of new startups in India. Various VC firms (Virtual Capital firms) have forayed into the Indian market, aggressively investing in Indian startups.
Being the third-largest startup ecosystem globally, India has witnessed a 19% YoY growth rate in VC investments between 2014 to 2018, whereas the Japanese startup ecosystem saw a 9% YoY growth rate. Moreover, the Virtual Capital firm establishments in India have grown three times from around 35 companies to 107 companies between 2010-19 (Q3) from 2000-09.
According to reports, Indian startups acquired investment worth $ 55 billion between 2014 and Q3 of 2019, with $ 5.85 billion invested in the first half of 2019.
While speaking at the ‘Howdy Modi’ event held in Houston, the US in September, Modi emphasized that India was presently technically developed enough to lead the world in the industry 4.O revolution, which relies majorly on data analytics, digital tech to augment and improve manufacturing.