How Startups Are Changing The Indian Economy Forever
As the Indian economy is changing from time to time, the startup ecosystem is also getting some major changes. The startup industry in India is growing day by day. It's become more competitive than in the earlier days but it's a very good thing for the common people that those startups are providing many jobs to them outside their homes and are providing new services or products in daily life to the public at a low cost or free of cost. While other countries in the world like the US, UK, China, and other Asian countries are also making their own startup ecosystem but they can't give away anything as Indian startups can.
The Indian economy has completed 70 years of its independence and is going to complete the 71st next year. It has been the world's fastest-growing economy regarding GDP since 2014-15. The topmost priority of the Indian government was to focus on poverty reduction and economic growth. The economic reforms that have taken place or have been carried out in India from time to time gave a turning point to the various industries of India as well as it had a major impact on the startup ecosystem too. And now, this effect is also increasing day by day as the Indian economy changes over time.
In 2016, there were around 4000 startups registered in India. The upcoming next 5 years can be very good for Indian startups because they are expected to reach up to 12,000 startups by 2021. This will be possible only because the Indian economy is growing rapidly and day by day it is changing into new forms. As startup companies are getting so much support from many investors and incubators like Microsoft, Google, Paypal, and other industry leaders in India, they can give more services or products at low cost or even free of cost which can lead them to touch the heights of success soon in their sector or industry.
Startups' Direct Influence on the Indian Economy
The most serious issue confronting India is unemployment. Jobs are mostly created by startups rather than large corporations. Because startups are not subject to economic downturns or encumbrances, they can employ more people.
More works are produced because of creative ideas.
Every startup will try to be creative and with. Everyone thinks differently so that the solutions found by different startups for the same problem are also different and the smartest and most creative ways are encouraged more and create more outsourcing to India
Professional and entrepreneur talent explosion for improved ROI
India is brimming with talented professionals, but they lack the opportunity to showcase their abilities. Startups are looking for talented professionals to give them a platform to showcase their abilities, and multinational corporations are always encouraging them to spend more money in India.
The new technology that reduces manufacturing costs
Technological advancements will significantly improve operations and lower business costs. Startups in India will look for new technology or develop new technology to reduce workload. When new technologies are accepted and demand grows, many multinational corporations will be interested in investing in India. Furthermore, advances in the computer industry, combined with advances in telecommunications, have increased job opportunities and strengthened economic growth in recent years.
More competition leads to increased job satisfaction.
A healthy amount of competition is always necessary for the improvement and updating of a product or service's quality. When competition increases, companies study customer behavior and launch new products that users want, which increases demand for the product and sales, which benefits the Indian economy directly.
More service outsourcing
Many MNC is now outsourcing their work to small businesses so that they can focus on their core competencies. When these start-up companies demonstrate their abilities, many other companies will be interested in outsourcing their work to our country, allowing India to become specialized in that field. For example, India is quickly becoming a global VFX hub. Many large corporations outsource their operations to India, which has a significant impact on the Indian economy.
Startups' indirect influence on the Indian economy
More money is flowing into the Indian market.
When a startup creates jobs for people, they begin to purchase goods and services, increasing the flow of money and revenue to the government and thus boosting the Indian economy.
Demand for connected services is increasing.
Many start-up support services, such as registration, marketing, and human resource services, emerge, creating jobs that are beneficial to our economy.
Improvements in the town or city's appearance
When there are many startups in one place, demand for that site rises since many individuals want to work there, and the city's infrastructure changes dramatically.
Education is progressing well.
People are usually eager to provide their children with an excellent education. When they have a decent salary, they will want a good educational institution, and many foreign institutes have shown interest in India, resulting in additional jobs and a flow of money that advances society.
People want good treatment, but it is expensive; yet, when people have money to spend, they demand good care, allowing hospital administration to import all modern equipment, making India self-sufficient in every treatment.
The startup industry in India is growing day by day. It's become more competitive than in earlier days, but it's a very good thing for the common people. Because startups are not subject to economic downturns or encumbrances, they can employ more people. India is brimming with talented professionals, but they lack the opportunity to showcase their abilities. Startups in India will look for new technology or develop new technology to reduce workload. Advances in the computer industry, combined with advances in telecommunications, have increased job opportunities. Startups' indirect influence on the Indian economy has a significant impact on our economy.
When a startup creates jobs for people, they begin to purchase goods and services. This increases the flow of money and revenue to the government and thus boosts the economy. It also makes India self-sufficient in every aspect of healthcare and education. Do share your opinion in the comment box.
also read: Simple Guide to Setting Up an Accounting System for Your Startup