Indian Economy & Startups- Generating Business & Jobs
Posted in Finance Articles, Total Reads: 739
, Published on 16 June 2016
Indian economy is world's seventh largest economy by nominal GDP. Amongst all the sectors contributing to the economy, service sector has its largest share and most of it comes from the IT. The expansion of IT sector has been led by the innumerable start-ups in the economy.
India has celebrated its 67th Republic Day in which Ministry of Communication, information and Technology spoke about the current scenarios in IT sector and how this scheme would help in growing the Indian economy. India stands at fourth position in world's technology start-up hub wherein 3100 tech start-ups accounted as per the Economic Survey 2014-15 (reference number). Well, the numbers are very great but sustaining in the market over long run is important too.
These days, a lot of tech start-ups are emerging and targeting the special needs, not only of the customers but for businesses as well. Be it e-commerce, health & fitness, travel, food & beverages, software solutions, real estate, groceries, transport, logistics etc. Entrepreneurs are striving to find a connect between the problems and the customers. Apart from these above mentioned major industries, Entrepreneurs are also unearthing the niche which are very quotidian and prevalent in day to day activities and providing the panacea through the most common technologies- phone and desktop. Talking about the business models that entrepreneurs are constructing, the preponderance of the entrepreneurs are acting as a middlemen between the service providers and the customers. The numbers are lesser wherein consumables are being directly provided from the entrepreneurs' part. The ideology behind this could be the risk level entrepreneurs want to take. This model would be on the right path as running a business in this cluttered market is a very hard nut to crack. The other aspect of this would also be the only idea that strikes into their mind while preparing business plans.
The influx of young ideas are working parallel to the needs of the young population of India. As India is known as "Youngistan" (nation of young), identifying the needs and catering them becoming much more easier for entrepreneurs. Despite of the fact that ideas are a good problem solver for people, most of the start-ups are failing to sustain in the economy. Poor business model, ineffective revenue model, loose marketing strategy, choosing a wrong team are few reasons for it. Some say that they have lost the first mover advantage in the marketplace and therefore standing flamboyant in the market is burdensome for them, but it is not like that. In India, the first thing strikes to customers about e-commerce is Flipkart, wherein the term e-commerce coined in India 8 years back when Flipkart was launched. Yes! It is about "indiaplaza.com" which was launched in 1999 by the father of e-commerce in India K Vaitheeswaran when dot com was in boom. After performing a decade, it was a bummer for them to manage the funds which led them to prolong the idea. So, it's all about the strong vision that one must couple with the idea and the business. Result, we can see that Bansals are known as the business booms in India.
Earlier in economical terms, the whole India was to be considered as an outsourcing company wherein all the knack was getting utilized by the other companies. But now a days, startups have given a good picture to Indian economy and its image. Boosting the economy in terms of technology, services, wealth are the major counts, however, these startups have created heaps of jobs and opportunities in India. As per the NASSCOM India Startup Report, 80000 jobs were created by the startups in the economy. Although, the unemployment rate of India is still high in comparison with few developed countries around the world but yes, in comparison with the Indian stats only, we have improved a lot. A big thanks to all the technology inventors and creators who have made life much more easier in terms of each and everything.
Thus, startups in India are not only providing the convenient services with ease of technology, they are boosting to the Indian economy by creating employment opportunities, more transactions into the economy, digitalize the ideas and concepts. Hope, entrepreneurs will come up with more ideas that will connect with economy as a whole.
This article has been authored by Noushad Ahamed
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