Let start-ups thrive in smaller towns
Start-ups in India continue to proliferate in megacities. The flexibility to operate from remote locations and away from cities being the fulcrum for start-ups, it is strange to note that small towns still get nudged away by their big brothers. As per the recently unveiled Economic Survey of 2021–22, Delhi has overtaken Bengaluru to become the start-up capital of India. The Survey tells us that start-ups in the country have grown remarkably over the last six years, thanks to policy support by the government. With over 14,000 being recognised in 2021–22, their total number in the country has gone up to 61,400, as of January 10, making India the third largest start-up ecosystem in the world after the US and China.
What is more exciting is the fact that a record 44 start-ups have achieved unicorn status in 2021, taking the overall tally to 83. India overtook the UK to emerge as the third-highest country in number of unicorns after the US and China. As of January 14, India’s 83 unicorns have reported a total valuation of $278 billion. That is indeed unparalleled growth.
As per a recent Nasscom-Zinnov report, India will have 200 unicorns by 2025, and the ecosystem will account for 37,000 tech start-ups. The emergence of the ecosystem has been imperative in providing direct and indirect job opportunities, accounting for 6.6 lakh direct jobs and more than 34 lakh indirect jobs. Among sectors, financial services and banking, edu-tech and supply chain management have been at the forefront of creating most of the employment opportunities.
The need of the hour is to encourage a pan-India growth of the ecosystem. The government had started a system of rankings to encourage states to provide a conducive environment. Last year, Gujarat took the best performer ranking, while Karnataka and Kerala got the top performers’ titles. During the pandemic, there is a certain accumulation of new start-ups in megacities. The policies should aim at letting start-ups bloom in smaller towns so that they can provide huge employment opportunities across the country.