Many of us don’t want to work hard to make others rich. Many of plan to have something of our own. Startup India was launched with an aim inject new life into the startup ecosystem and goal to boost the Indian economy. But did Startup India really help the startups in India? How much effective have they been?
Let’s have a look.
Startup India was launched in the year 2016 with a lot of hype and big announcements from the ruling government. It promised to solve a lot of issues in the Indian startup ecosystem. It was being said that it will change the status quo and face of the Indian startup scenario.
In the year 2016, approximately 500 startups were registered under Startup India.
After facing a lot of criticism in its first year, the Startup India programme started picked up its pace in the next year. In the year 2017, 5000+ startups were registered.
The entrepreneurs started coming with great ideas, great potentials and a great set of skills, the investments started coming and the plane just took its first fly.
It was being said that these both programs will solve the unemployment problem in India. Indeed, both the programs brought the improvements in many sectors. The ride had started moving, but it was not a smooth journey ahead.
The Indian government has announced that they will invest total Rs. 10,000 crores throughout two years. Till now they have been able to invest only 1% of the said target. 33,000 startups also claimed that they had gained virtually nothing from this Startup India program.
A study indicated that 42% of the startups thought they their businesses will change the world. But their results didn’t have the same level of punch and it resulted in startups being shut down. Approximately 25% of startups were unable to start due to lack of funding.
Other factors like inability to scale, lack of solid foundation and a profitable business model, GST rollout, the great Indian demonetization also performed a significant role in startups being shut down.
Startup India program was mainly launched with an aim that it will give a new life to Indian startup ecosystem, it will create more entrepreneurs, it will create new jobs for the Indian, revenue generated will stay in India as savings, investments and ultimately boost entire overall Indian economy. Although the program itself was not proven to be an excellent solution to the problem, it has undoubtedly helped to an extent.
At the same time, it has created opportunities for American and Chinese investors to invest in startups. Flipkart getting bought by American company Walmart, Chinese group Ali Baba investing heavily in PayTMMall and BigBasket are excellent recent examples.
The Startup India programs gave many benefits to the Indian economy but day by day it is raising concerns that will Indians work hard, and ultimately profits and revenues will go to foreign investors? Is Startup India working hard to make others rich? We would love to have your inputs on the same.
Let us know your thoughts in the comment section below.