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Defining Moments From India’s Startup Ecosystem

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Introduced 5 years in the past on 15 August 2015 and launched in January 2016, Startup India is commonly known as the present Narendra Modi authorities’s pet initiatives and for good motive. The  ‘Startup India, Standup India’ slogan ignited the spirit of entrepreneurship in India. Backed by a slew of coverage reforms reminiscent of funding help, bilateral authorities collaborations with numerous international locations, in addition to a spread of insurance policies in numerous sectors, Startup India additionally introduced Indian startups to the worldwide tech discourse.

With a constant messaging of hope and delight in Indian tech, Startup India attracted entrepreneurs from each nook of India. So what has been the impression of those initiatives previously 5 years? Right here’s a take a look at how Startup India modified the sport from 2016 to now.

Moments By Numbers

1. From 29Ok startups in 2014, the numbers grew exponentially from 2015-2018 to the touch 55Ok in 2020. Between 2016 and August 2020, Startup India programme says it has recognised over 34.8K startups. 

2. $63 Bn has been invested in Indian startups within the final 5 years. The Indian tech startups raised about $13.5 Bn in funding throughout 885 offers in 2017, which is the height yr by way of funding previously 5 years

3. From 10 unicorns in 2016, India now has 33 startups which have attained the unicorn standing 

4. 53 Indian startups have the potential to hitch the unicorn membership by 2022, as per the newest evaluation by DataLabs by Inc42+

5. Flipkart’s $16 Bn acquisition by Walmart grew to become the most important ecommerce deal globally and introduced the retail large’s full consideration to the Indian market. Since then Flipkart appears to be focussing on a number of classes reminiscent of B2B provide, logistics and warehousing, hyperlocal darkish shops and even alcohol supply. 

6. Udaan grew to become the quickest Indian startup to accumulate unicorn standing i.e. 26 months. As per DataLabs analysis of a pattern set of 31 Indian unicorns over time, the contribution of 2019 was 26% (until Q3 2019) — seven startups reached this mark the identical yr. The Datalabs by Inc42 report on the state of the ecosystem until Q3 2019 signifies that the median founding yr for the unicorns in India is 2010, which can also be the yr when MakeMyTrip grew to become India’s first unicorn. 

7. 665 Indian startups have been acquired within the final 5 years. 2019 famous that the ecosystem noticed 111 M&A offers within the yr, recording a 10% Y-o-Y fall. That is the bottom variety of mergers and acquisitions offers between 2015 and 2019.

8. BYJU’S grew to become the world’s most respected edtech unicorn and is at present valued at $10.5 Bn and just lately made waves with a $300 Mn acquisition of WhiteHat Jr, an 18-month-old firm, the most important enterprise exit in Indian edtech historical past.

9. From 2000 traders in 2016, India has seen participation of 4,640 traders within the startup funding. DataLabs by Inc42+ has famous that that the variety of distinctive traders in 2019 noticed a minor fall as in comparison with the final three years, from a peak of 315 distinctive VCs in 2017. 

10. 30 Indian states together with UTs have launched startup insurance policies and plenty of of them have existed nicely earlier than the Startup India programme got here into impact. The state insurance policies of Kerala, Maharashtra, Karnataka have been notably profitable, whereas Delhi authorities is seeking to renew its startup coverage later this yr.

11. 34.8K startups have been recognised by DPIIT. Amongst these, 8.3K startups obtained mental property rights (IPR) payment advantages, whereas over 2.6 Lakh folks enrolled within the entrepreneurship-focused studying programs supplied by upGrad and Startup India. 

12. Over $1 Mn value advantages got to five.5K startups as a part of over 150 startup innovation programmes and challenges below Startup India programme.

13. SIDBI has launched INR 700 Cr and dedicated INR 3,123 Cr to 47 AIF, whereas INR 695.94 Cr has been withdrawn from the Startup India fund of funds. To make the funding process easier for the startups and the federal government, fund of funds additionally went digital in July 2019 via a web-based utility.

14. INR 3,476 Cr has already been invested in 323 startups from the fund of funds corpus managed by Startup India via Make investments India. 

15. Startup India enabled world market entry and data for Indian startups via bilateral authorities collaborations with Russia, South Korea, Portugal, Japan, Netherlands, United Kingdom, Sweden, Finland, Israel, and Singapore. 

16. India modified the startup definition in February 2019 to recognise firms as startups for as much as 10 years from the incorporation date, plus the turnover restrict has been elevated to INR 100 Cr from INR 25 Cr earlier.

Digital India Moments

17. India is persistently improvising on ease of doing enterprise rankings by the World Financial institution. In comparison with 142 rank of India in 2015, India was ranked 63rd amongst 190 international locations on 

18. India now has 676 Mn broadband subscribers (together with each wi-fi and wireline connections) and 1149 Mn wi-fi phone subscribers, out of which 629 Mn are city subscribers.

19. The nation has witnessed elevated penetration of smartphones because of the proliferation of reasonably priced units made in China. The following worth wars and the federal government’s push for Make in India ultimately led to the expansion of the smartphone manufacturing market in India, which has additional pushed the fee down. At present, India has near 450 Mn smartphone customers (as of July 2020) and is the fastest-growing smartphone market on the earth. 

20. 1.42 Lakh Gram Panchayats are linked with optical fiber below the BharatNet programme which seeks to deliver web connectivity to all villages. The programme is intently linked to the Digital India mission in addition to the plan to create Digital Villages to enrich the good cities mannequin. As of now, there was no progress on the digital villages entrance past the announcement

21. The brand new schooling coverage lays emphasis on digital schooling and distant studying opening doorways for edtech startups, the place they will help faculties, college students and academics in offering a seamless expertise, thereby enabling college students to determine their curiosity areas and expertise.

22. By way of gender range throughout workspaces in India, simply 9% of the board members of the highest 20 unicorn startups in India are ladies. To spice up participation of girls entrepreneurs within the startup ecosystem, 10% of the INR 10Ok Cr Funds of Funds has been reserved for women-led startups.

23. Through the pandemic and the resultant lockdown, India crossed 500 Mn web customers with 504 Mn energetic web customers, backed by an enormous surge in rural and semi-urban customers.

24. The Indian tech business has grown to change into one of many largest startup ecosystems on the earth. In 2019 alone, Indian startups raised over $12.7 Bn and by 2021, startups are prone to cross the $15 Bn mark by way of funding too. Backing the traders are over 200 incubators and accelerators which can be essential in figuring out sources of innovation early on. The likes of Nascomm’s 10000 Startups, Kerala Startup Mission, Maker Village, T-Hub in Telangana, BIRAC, Bhamashah Know-how Park in Rajasthan and extra have led the trail for incubators in India

25. In March 2018, SEBI had rolled out an inventory of prime 1000 listed firms which had been mandated to nominate a minimum of one girl director of their board by March 2020. As on December 31, 2019, 977 of that prime 1,000 firms had a girl director, and 835 of them had a ladies impartial director. It is a sharp bounce from 379 ladies administrators and solely 193 ladies impartial administrators again in March 2014.  In 2018, these prime listed firms appointed 974 ladies administrators total, and 660 feminine impartial administrators.

26. In line with the newest report revealed by the Web and Cell Affiliation of India (IAMAI), 65% of the Indian web customers are male whereas the remaining 35% are feminine

27. In June 2019, B2B ecommerce platform IndiaMART joined the likes of MakeMyTrip, Justdial, Matrimony, Data Edge and others as a public listed tech firm. IndiaMART posted over 64% improve in web revenue at INR 74.6 Cr in Q1 FY 2021.

Coverage Moments

28. To make sure regular and fast medical providers for even these caught at residence and unable to enterprise out, the Indian authorities launched a set of tips for telemedicine or distant healthcare on March 25, 2020, the identical day because the lockdown started. With the rules in place, many extra startups have emerged on this subject to repair the entry hole. 

29. After years of court docket battles and authorized hurdles and regardless of rising adoption for epharmacies, on-line pharmacy startups nonetheless await tips and readability on regulatory facets. That has not stopped new gamers from launching providers. Amazon has entered the fray just lately, with talks of Reliance Jio buying Netmeds. Most just lately, The Web and Cell Affiliation of India (IAMAI), which additionally represents epharmacies, urged the federal government to launch tips in June 2020 consistent with its guarantees.

30. It’s protected to say that India’s journey with digital funds really solely started in November 2016. Whereas digital fee wallets and gateways existed nicely earlier than 2016 too, the demonetisation which was introduced on November 8, 2016 catapulted India into digital funds in a single day. Backed by the success of UPI apps, people, service suppliers and retailers in Indian metros, Tier 1 cities and plenty of Tier 2 cities nowadays all help cashless transactions via a wide range of platforms.
Moreover this, since 2002, the RBI has been planning the event of the fee programs below RBI’s imaginative and prescient doc for the fee and settlement programs in India.

The most recent imaginative and prescient doc got here in Might 2019, emphasising on innovation, cyber safety, monetary inclusion, buyer safety and competitors. envisaged constructing best-in-class fee and settlement programs for a ‘less-cash’ India. Quantifying the expansion, RBI stated that digital fee transaction turnover vis-à-vis GDP (at market prices-current worth) elevated from 7.14% in 2016 to 7.85 in 2017 and additional to eight.42 in 2018.

31. After greater than a yr of discussions, the federal government now claims there is no such thing as a particular timeline for introducing the nationwide ecommerce coverage, which was proposed in 2018. In early 2019, DPIIT had launched the draft ecommerce coverage, proposing knowledge localisation and streamlining of ecommerce operations consistent with FD! guidelines. 

32. In April 2018, the Indian authorities introduced the formation of a 13-member process power to work on the coverage relating to manufacturing and licensing of drones, airspace and air visitors administration and extra. The drone coverage, named Drone Rules 1.0, got here into impact from December 1, 2018. In January 2019, India launched the draft notice for Drone Rules 2.0.

33. The estimated market alternative within the vernacular content material phase in India is $53 Bn (2021) and given the profitable market alternative, the federal government and tech giants have ramped up investments for regional language-focussed startups. In its $10 Bn Google For India Digitization Fund, Google stated a portion of the cash could be invested in regional language platforms, whereas the ban on Chinese language apps in June 2020, has added a stronger highlight on this phase.

34. Among the many controversial reforms by the federal government regardless of its push for startups, the angel tax or Part 56 (2) (vii)(b) of the Earnings Tax Act is unquestionably on the highest of the listing. It dominated {that a} privately held firm points its shares at a worth greater than its honest market worth, the quantity obtained in extra of the honest market worth can be taxed as revenue from different sources. Since November 2018, greater than 2,000 startups that had raised cash since 2013 received notices from tax authorities and although the state of affairs has been clarified for DPIIT-registered startups, a lot of these which aren’t will proceed to be targetted by angel tax. Like clockwork, yearly, startups name for the federal government to ease the foundations and chill out the tax burden, however the ghost of angel tax continues to linger on.

35. India launched the Sooner Adoption and Manufacturing of Hybrid and Electrical Autos (FAME) scheme for a two-year interval at an authorised outlay of INR 795 Cr in 2015. The scheme, prolonged until September 2018, focussed on expertise improvement, demand creation, pilot initiatives and charging infrastructure. Beneath part II, India is planning to increase monetary help of INR 8,730 Cr to EV business for 3 years. 

36. On Might 16, 2020, the federal government introduced a expertise push for personal sector participation within the defence and house sectors which plans to hyperlink the startup ecosystem with the nuclear sector, as a part of the bigger reforms to spice up the economic system in a post-Covid-19 world. Finance minister Nirmala Sitharaman introduced separate budgetary provisions for procuring solely India-made defence objects, a hike in overseas direct funding limits, personal sector participation in outer-space journey and inter-planetary exploration and expertise incubation centres for personal firms linked to nuclear analysis.

37. The Startup India coverage isn’t solely about enabling current companies. It enforced a slew of coverage reforms reminiscent of funding help, bilateral authorities collaborations with numerous international locations, and constant messaging of hope and delight in Indian expertise, services. Put up the launch, 26 state governments additionally launched their very own startup insurance policies, with state-sponsored Atal Incubation Centres driving grassroots innovation since 2016.

38. Recognising the double taxation challenge within the case of worker inventory possibility plans (ESOPs), finance minister Nirmala Sitharaman introduced on the FY 2020-21 Union Funds that tax on the time of train could be deferred by as much as 5 years or until an worker leaves the corporate or once they promote their shares, whichever is earliest.  Nonetheless, going via the Finance Invoice 2020, quickly it grew to become clear, that the ESOP-related announcement will profit nearly 250 startups within the nation in distinction to the over 55Ok startups in India. 

39. Established in January 2009, the Distinctive Identification Authority of India (UIDAI) and the 12-digit Aadhaar ID have modified the sport for billions of Indians. With direct supply of economic and different subsidies, linkage to monetary accounts and cell numbers, Aadhaar has change into a central a part of many digital providers within the fintech and banking sectors. Nonetheless, Aadhaar has had a controversial life with a number of database leaks emanating from authorities departments. Plus, the rampant linking of Aadhaar to totally different branches of the federal government have led to privateness issues from civil and legislative our bodies. 

40. After remodeling fintech and banking via the India Stack mission, the following agenda for India is the Nationwide Well being Stack, which seeks to rework healthcare simply as India stack did for fintech. Will structured knowledge with consent layers baked into it enable the Nationwide Well being Stack to lastly deliver India’s ailing healthcare infrastructure updated with the instances? The Nationwide Well being Stack, which is a set of important APIs, just lately went dwell for testing. When applied in the appropriate method, it is going to make telemedicine and different healthtech prospects a actuality with security, interoperability, safety and reliability being the first pillars.

Envisioning a cohesive future for healthcare, dozens organisations and corporations — Nationwide Most cancers Grid, Swasth Alliance, LiveHealth, DRiefcase and others — have begun testing the newly constructed Nationwide Well being Stack APIs previously few weeks. However there’s nonetheless a protracted solution to go earlier than there’s full-fledged innovation constructed on the well being stack.

41. The Covid-19 pandemic has additional pushed the telemedicine and teleconsultation in India, Although the information for a similar continues to be unavailable, however PM Modi had come on file to say that telemedicine and teleconsultation are on the identical path of success as digital funds with rising numbers and integration, nevertheless, there may be nonetheless scope of innovation right here.

42. The crowning glory of India’s many fintech-related developments, the unified funds interface or UPI is a real-time prompt funds system for people and retailers. Since April 2016, UPI has change into the de facto face of digital funds. UPI has witnessed over 1,029 Cr transactions till August 2019 with a complete of INR 17.29 Lakh Cr (or $240 Bn) processed since its launch.

43. It could be unimaginable to recount the assorted taxation reforms over the previous 73 years, however the greatest modifications in latest instances got here final yr with the Taxation Legal guidelines (Modification) Ordinance 2019 handed in September 2019. India slashed company tax charges to 22% for current home firms and 15% for brand new home manufacturing firms. Different measures had been additionally taken to grant tax reduction to corporates, thereby making the full income foregone estimated at INR 145Ok Cr ($20 Bn).

Whereas offering reduction to some Indian firms, India can also be seeking to improve its share of income earned via tax from tech giants reminiscent of Google, Fb, Twitter, and Amazon. All of those have large audiences in India, however whereas they generate income within the nation from digital providers, the companies working these providers usually should not situated in India. Companies with none bodily presence in India could reportedly must pay a 30-40% digital tax for the income generated from sale of digital providers. 

44. On July 1, 2017, the Items and Providers Tax (GST) was rolled out for all companies and professionals in India. With the motto of ‘one country, one tax’, the GST regime envisioned India as a single industrial union. It was the most important tax reform (within the oblique taxation) in India’s historical past and whereas the repercussions of such a giant change and the implementation are nonetheless being felt, many financial consultants imagine that it was a crucial step for the Indian economic system. Introduced in 2000, the GST took 17 years to return into impact.

It consolidated levies reminiscent of State Worth-Added Tax (VAT), Central Excise, Service Tax, Entry Tax or Octroi, Customs Responsibility, Central Surcharge & Cess, Luxurious Tax, Leisure Tax, and Buy Tax together with just a few different oblique taxes.

45. In January 2020, the Niti Aayog launched “Blockchain: The India Strategy – Towards Enabling Ease of Business, Ease of Living and Ease of Governance” dialogue paper which sought to maximise the potential of blockchain for India’s wants. The paper delved into the practical definition of the complete suite of blockchain or distributed ledger applied sciences together with authorized and regulatory points and different implementation conditions, particular use-cases for Indian market. 

46. Among the many most up-to-date coverage selections to spice up the Indian logistics and transport sector and create environment friendly channels for motion, India introduced a brand new Nationwide Logistics Coverage on the Union Funds 2020-21. The Nationwide Logistics Coverage will make clear the roles of the federal government and key regulators and can look to create a single-window e-logistics market and concentrate on the technology of employment and expertise.

It consists of plans to develop 2500 Km entry management highways, 9000 Km of financial corridors, 2000 Km of coastal and land port roads and 2000 Km of strategic highways. Collectively, these have contributed to the rise of ecommerce and logistics as main sectors within the Indian market. The short turnaround time for supply in metros is one other indicator of how far India has come previously few years. 

47. Whereas there are many positives to remove from India’s flourishing startup ecosystem, job safety and steady employment should not amongst them.  The 24,848 DPIIT-recognised startups have collectively created over 3.06 Lakh jobs, below the Startup India scheme. However the excessive incidence of failed startups within the early and progress levels have made startup job losses ubiquitous and commonplace. The present Covid-19 pandemic has additionally had an impression on hiring and contributed to job losses. As per DataLabs estimates, the common proportion of layoffs within the whole workforce in Indian startups is 22% between April and June 2020.

Bharat Moments

48. With the Startup India push, entrepreneurship has been a significant agenda for schools and universities and on the grassroots degree in villages and rural India. A examine by US mergers and acquisitions dealer Latona final November revealed that India provides the fourth-highest degree of enterprise coaching and schooling in faculties. The US-based firm analysed the main startup ecosystems world wide on key indicators of entrepreneurial potential to disclose the world’s most entrepreneurial nations. India had a rating of seven.41 out of 10, which confirmed optimistic progress by way of innovation and upskilling.

On the agricultural degree, the MSME ministry launched the SIDBI-administered ASPIRE Fund in October 2016 with a corpus of $8.9 Mn (INR 60 Cr) to advertise entrepreneurship in rural India. Additional, to enhance the expertise adoption by rural industries, the federal government envisions establishing 80 Livelihood Enterprise Incubators (LBIs) and 20 Know-how Enterprise Incubators (TBIs) to develop 75,000 expert entrepreneurs in agro-rural business sectors.

49. As India is struggling to combat towards the worldwide pandemic, Indian startups have been arming the nation with their tech options. Whether or not it’s healthtech, provide chain and even grocery deliveries, Indian startups have been working laborious to make sure that India providers stay undisrupted even because the Covid instances are rising. Over the few months, NITI Aayog has onboarded startups to develop healthtech options and ventilators to spice up India’s healthcare infrastructure, whereas the IT Ministry is counting on startups to make indegenious video conferencing options

50. From floods in Orissa, Kerala and Chennai to the large issues posed by Covid-19, startups haven’t solely managed to maintain innovating however have additionally contributed once they can. Most just lately, many startups pitched into the assorted authorities funds for pandemic reduction and likewise undertook social impression actions to assist the needy within the instances of disaster.

51. The Ability India Mission has been a cornerstone coverage within the Indian authorities’s digitisation efforts. This yr marks 5 years of Ability India Mission and over 1 Cr youth have enrolled below the initiative on a yearly foundation. Until now, 67 lakh folks have been educated, whereas 4.45 Lakh trainees have been given apprenticeship coaching yearly, the federal government introduced final July.

52. Acknowledging the latest improvements by fintech startups, the Reserve Financial institution of India (RBI) has launched a draft ‘Enabling Framework for Regulatory Sandbox’ in 2019 that can enable fintech startups to check inside a regulatory sandbox (RS). It’s stated to be a stepping stone for the open banking requirements that the neobanking phase desperately wants to totally innovate within the banking and monetary providers business.

Backed by some personal sector banks, startups are offering ‘open banking’ or ‘API banking’ providers, which is actually a “banking as a service’ model for plug-and-play models. However, a standardised open banking model will be the biggest enabler in the future of BFSI.

53. In the past 5 years, the Indian government has come up with a wide array of startup schemes and startup funds to encourage launch and growth of startups in the country. Over 50 startup schemes have been floated by the Indian government to date to support the Indian startups, SMEs, MSMEs, research institutes, incubators, accelerators and other enablers. The schemes have not only brought more grants and capital, but have also help startups secure patents more easily for their innovation. The number of intellectual property rights (IPR) filings from startups have nearly doubled in six years from 4,000 to 4,500 IPR filings per year.

54. In August this year, the government commissioned Niti Aayog to develop a network of banks and fintech companies who could give small-ticket loans to bottom-of-the-pyramid borrowers such as farmers, street vendors and labourers by utilising the existing direct benefit transfer (DBT) infrastructure. Fintech startups such as PhonePe, Kissht and Pine Labs are also said to have been part of the government’s review meetings for the proposed scheme.

55. Prime Minister Narendra Modi on August 15, 2020 launched the tech-based National Digital Health Mission (NDHM), under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), to revolutionise the Indian health sector. Each patient would be given an ID card, which was based on similar models as seen in the likes of UIDAI and GSTN. The card will include confidential medical data such as prescriptions, diagnostic reports, discharge summaries and more. The initiative will also allow the patients to access health services remotely through teleconsultations and epharmacies while offering other health-related benefits.

56. Startup funding in Tier 2 and Tier 3 cities improved by 3.2x in 2019 ($243 Mn) compared to 2014 ($74 Mn)

57. 219 startups in Tier 2 and Tier 3 cities raked in total venture capital funding of $1.03 Bn (2014 to H1 2020) 

58. New startups in Tier 2 and Tier 3 cities are getting funded at a CAGR of 21%. Only 20% of the total funded startups in India are based in Tier 2 and Tier 3 cities, with over 5,800 startups in Tier 2 cities. The total funding for startups from Tier 2 cities alone is $1.3 Bn (2014-Q1 2019). However, when compared to Tier 1, there is a clear imbalance in startups and funding in Tier 2 and 3 cities.

59. The Indian government launched a National Seed Fund in the union budget of financial year 2020-21 to support ideation and development of early stage startups. The credit guarantee scheme will enable the startups to raise loans for their business purposes. Besides this, the RBI has added startups to the list of priority sector lending (PSL), which will allow them to borrow capital from banks smoothly.

60. Created under the Startup India programme, Atal Incubation Centres and Atal Tinkering Labs are dedicated works spaces where school students learn innovation skills. The labs are powered to acquaint students with state-of-the-art equipment such as 3D printers, robotics & electronics development tools, IoT and sensors.

In a bid to impart artificial intelligence (AI) basics to students, the National Association of Software and Services Companies (NASSCOM) has launched an AI-based educational module for school students. In collaboration with Niti Aayog’s Atal Innovation Mission (AIM), the programme is expected to teach AI to around 2.5 Mn students associated with Atal Tinkering Labs (ATL).

According to a recent study, the revenue of the AI industry was also doubled in 2019 from $230 Mn in 2018 to $415 Mn in India. Moreover, a PwC study estimates that the AI industry is expected to reach globally to $15.7 Tn with India having a noticeable share of this industry.

Global Moments 

61. With Startup India, businesses in India got access to global markets and knowledge through bilateral government collaborations with Russia, South Korea, Portugal, Japan, Netherlands, United Kingdom, Sweden, Finland, Israel, and Singapore. This also brought in a wave of new investors to the Indian startup ecosystem. The likes of Sequoia Capital, Softbank, Tiger Global, Accel Partners have launched new funds with Indian startups on their targets.

Plus, over the years, new venture capital firms such as Peter Thiel’s Mithril Capital, which invested in GreyOrange in 2018, Cleartax investors Morningside Venture Capital, China’s oldest VC firm and Ola backers Hong Kong’s Sailing Capital have also made their way to India. In 2019 too, India saw new venture funds from the likes of 3One4 Capital, AngelList India, 100X.VC and corporate venture funds Microsoft M12 and Samsung Venture Investment Corporation.

62. With the coronavirus lockdown forcing people indoors, many individuals suddenly found themselves with a lot more free time and many jumped into career changes by following their passion to make a living. Skills, interests and hobbies are being thrown under the spotlight, as the newfound passion economy stretches from experts conducting online fitness or dance classes to curated newsletters to podcasts and vlogging collabs to content pieces such as videos or expert articles.

With the emergence of the passion economy has come a new wave of growth for platforms such as Substack, Patreon, OnlyFans, Masterclass, MasterSchool, Medium, upGrad, Unacademy as well as mainstream options like Twitch for gamers, Spotify for podcasters and YouTube and Vimeo for creators who want the largest reach.

63. The rising prominence for OTT platforms has not only brought a veritable threat to the established distribution market in the entertainment industry, but the independence of many of these platforms has been a godsend for Indian consumers from the point of view of content. The OTT wave has given rise to a wave of indie directors, producers and artists that have enriched India’s already vibrant movie and TV show landscape. One impact from the autonomy of OTT video platforms in India is that viewers are largely attracted by uncensored content on OTT platforms in India. This also gives producers a free rein to experiment with content. Violence, Sex & Nudity: The Dark Side Of OTT In India

64. The Indian government has banned 106 Chinese app since June 2020 and barred public and private entities from trading with Chinese companies, which has increased the opportunities for Indian startups to set their mark in their respective segments. Video conferencing and short video apps are one of the few segments which has registered a high growth for Indian alternatives.

65. India was elected as non-permanent member of the UN Security Council for a two-year term after winning 184 votes in the 193-member General Assembly, thereby increasing the country’s standing in global trade and taxation policy debates. 

66. Over the last five years, global tech giants like Facebook, Google, and Twitter have also bought Indian startups to expand their offerings or boost their already existing portfolio. For instance, Google acquired popular transportation app Where is my Train, Twitter acquired mobile marketing and analytics company ZipDial, and Facebook acquired Little Eye Labs.

67. With India’s digital growth, Indian startups have not only become the number one destination to expand the market but also to make investments. Besides acquisition, global tech giants ranging from Amazon to Microsoft have also been eyeing on Indian startups through investments, accelerator programmes and other mentorship programmes. 

Hyperlocal Bubble, Atmanirbhar Bharat & More

68. India’s hyperlocal market is expected to have reached a value of INR 2,306 Cr by 2020. This time around, unlike the hyperlocal bubble of 2016, startups in the hyperlocal space are not only focussing on lowering delivery cost and increasing margins, but also not expanding recklessly. The hyperlocal wave is being led by Dunzo, Zomato, Swiggy, Flipkart and others in the current day-and-age, but the sector saw massive upheaval in 2016 with over 400 startups recorded and 100+ startups shutting shops, including PepperTap, TinyOwl and others. 

69. A study by Bain & Company done in collaboration with online retail giant Flipkart suggests that India has nearly 100 Mn online shoppers. The number is expected to grow to 300 Mn – 350 Mn by 2025 with a GMV of $100 Bn. The report adds that these 200 Mn shoppers will majorly come from Tier II and beyond regions, noting the next phase of the ecommerce growth. The report added that Tier 2 and below markets already see three out of five online orders being shipped to them. 

70. Further reiterating the Make In India initiative, PM Modi came up with Atmanirbhar Bharat vision to make India self-reliant as the economy is struggling due to the Covid-19 pandemic and the resultant restrictions. With self-reliance in mind, the Indian government is trying to boost more local solutions as opposed to non-Indian products and services. The ban on 106 Chinese apps has further pushed Indians to look for more Indian solutions. 

71. While we are discussing the Atmanirbhar Bharat vision, it is important to note that the Make In India campaign has also had its role to play in boosting Indian economy and incentivising production in India. One of the biggest examples here is China-based Xiaomi, which claims that 99% of its smartphones are made in India. After the government banned its browser and community app, the company is now looking to develop its MIUI software in India as well.

The Make In India campaign catapulted India to the fastest growing smartphone market in the world, and helped it to surpass the US to become the second largest smartphone market in the world. With more and more electronics and parts being manufactured in India, India will get first access to these technologies as has been the case with China for over two decades. According to Datalabs by Inc42, manufacturing and industrial SaaS solutions as well as deeptech products and services will play a pivotal role in advancing the “Make In India” mission seeing as automation and digitisation are key to rising the general productiveness in manufacturing.

72. One of many main indicators of digital transformation in India is the rise within the variety of web subscribers in India. From round 233 Mn in 2014, India in the present day has over 504 Mn energetic web customers. A lot of the credit score for this goes to the launch of Reliance Jio, which utterly modified the telecom and cell web recreation in 2016. As of July 2020, TRAI reported 676 Mn broadband subscribers in India, together with each wi-fi and wireline connections. Additional, India has over 1.14 Bn cell subscribers, out of which 629 Mn are based mostly in city areas.

73. The federal government launched the GeM (Authorities-e-Market) in August 2016 to facilitate on-line purchases of products and providers by all of the central authorities departments and ministries. The initiative was additionally used to additional increase the Make in Indian initiative.

74. As indicated by former finance minister, the late Arun Jaitley in his Union Funds 2018 speech, the Indian authorities’s suppose tank Niti Aayog has been engaged on a roadmap for Nationwide AI programme. The Indian Nationwide Program for AI can be geared in the direction of growing new purposes of synthetic intelligence applied sciences reminiscent of machine studying, pure language processing and extra. Extra just lately, in Might 2020, IT minister Ravi Shankar Prasad launched the one-stop digital platform for all synthetic intelligence (AI)-related developments in India.

The portal, ai.gov.in, will facilitate the sharing of assets highlighting the depths and utilization potential of AI. This would come with info on startups, funding funds, assets, firms, schooling establishments and different assets associated to AI in India. The portal will share paperwork, case research and analysis stories, amongst different helpful examine materials. It is going to additionally host a bit for on-line studying and ability improvement in addition to new jobs within the AI phase.

With inputs from Kritti Bhalla and Nikhil Subramaniam



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