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Opportunities for Startups in India The current environment in India for starting own venture has become conducive and a great deal of entrepreneurship opportunity.

By Paramjit Anand

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Entrepreneur India

With the launch of Prime Minister's ambitious Startup India mission on 16th January at Vigyan Bhavan auditorium in New Delhi, it seems that India is progressing to become the next big startup nation.

Never before in the history of India, so many influential forces have congregated to promote startups and enable them to flourish globally. In the past few years, the Indian startup ecosystem has witnessed an immense growth, despite several roadblocks, adoption of play-to-win approach by the young and enthusiastic entrepreneurs was all time high.

However, the direct involvement of government in empowering startups will certainly give a real boost.

There was a time in India when much importance was given to government jobs. Later, higher pay scales and good perks offered by several private sectors or multinational companies enticed greatly to the people.

A lot of factors, including the globalization and rise of IT industry in the 90s were majorly responsible for the rise of entrepreneurship in India. Today, Indian Economy is undergoing an immense makeover with new strategies rolling into the market emphasizing and enhancing the role and contribution of startups.

In 2016, Indian market is foreseeing market domination for startups, especially in the online retailing and service industry where high priced business entities have been created. Moreover, it is projected that there will be over 11,500 startups by 2020 and that will change the way markets are working today in India.

The new age India today is ready to walk on the path- follow your hearts- shown by the business maven Steve Jobs and Mark Zuckerberg. Moreover, with the environment in India for starting own venture has become conducive and a great deal of entrepreneurship opportunity India presents, more and more people are now prepared to take the leap.

India's Population Has Opened New Gateways

The population of India is a huge asset for the country in the next few years. By 2020, it is supposed that the nation will be experiencing a "demographic bonus" period, where the working age population would surpass the non-working population.

This unique demographic advantage will offer a great opportunity to any firm or organization trying to become successful and create a dominant position in the Indian market.

And, therefore it comes as no surprise when Facebook with its initiative aims to bring Indians on-board and Google ramps up its efforts in India to connect with next 1 billion users through its Balloon Internet Project.

Entrepreneurs in India have identified the nascent and unorganized stage of infrastructure in a country that is presenting a huge opportunity for them, and hence are trying to digitize or organize various segments.

Many IIT-ians and MBA Freshers Opt for Entrepreneurship

Recruiting trend among IITs and top MBA colleges always make news because of the higher packages that are offered to the students. The talented students from these top colleges either lining up to get placed in the startup or opted out campus recruitment process itself, mostly, due to their growing interest to start their own ventures.

Talent Is Inclined To Work With Startups

India is all set to break away the traditional career paths as a lot of talent is tending towards working with the Indian startup space. Challenging assignments, huge funding that brings huge compensation packages and an associated cool quotient are making startups a very lucrative place and attractive value proposition.

Increasingly, a trend is being noticed where several mid-level officials are also quitting their jobs at big firms in order to work for startups. Besides, a survey conducted by Economic Times also confirmed that the number of students joining startups and e-commerce companies has grown considerably.

Even to attract the best talent in the world, many startup firms have been taking bold moves by offering high remuneration packages.

Indian and Foreign Investors Making Huge Investments in Startups

The startup ecosystem is getting substantial support from foreign and Indian investors, who have shown more faith in the industry and have provided funds to help these companies to grow leaps and bounds.

In 2015, India saw almost 300+ active angels and VC/ PE players, who carried out more than 300 deals. Various VC/PE investments happened in the expansion stage. Moreover, according to a data, Indian startups raised around $6.5-billion (Rs 42,300 crore) billion from investors in the last year.

New York-based Tiger Global Management (TGM) is currently the top foreign investor in India, followed by the Russian company- DST Global, Japanese telecom giant Softbank, Kalaari Capital, Sequoia Capital and Accel Partners.

Government Funds for Startup firms

Funding by the GOI has been the biggest backbone for the young entrepreneurs in India. By launching several plans, Indian government has assisted the start-up firms a lot to perform and sustain both in domestic and global market. There are numerous government and semi-governmental initiatives to assist startups.

Startup India Initiative

Launched by the honorable Prime Minister of India, Mr. Narendra Modi, Start-Up India initiative is a great relief for start-up firms that will give them a final break from the conventional License Raj of India. The program includes three-year tax and compliance breaks intended for cutting arduous government regulations and red tapism.

Make in India Initiative

"Make in India" has not only encouraged the manufacturer, but also the Indian buyer to trust and invest in the in the domestic brands.


Many small entrepreneurs find difficulty in getting loans or finance to start or run their businesses. Through this scheme, they will easily get loans from the banks to set up, grow and stabilize their businesses. Generally, while applying for loans, these small firms are asked for large collaterals by the banks, which made their business unsustainable.

Atal Innovation Mission (AIM): This is an innovation promotion platform launched by the Mr. Arun Jaitley, the finance minister of India during the budget 2015 that involving academics, entrepreneurs and researchers.


To facilitate the growth of startup firms, SETU (Self-Employment and Talent Utilization) fund had been set up by the government. Under this program, Rs 1,000 crore has been allotted by the government in order to create opportunities for self-employment and new jobs mainly in technology-driven domains.

E-biz portal

To bring down the complexities and obstructions in setting up a business, Government launched e-biz portal that integrates 14 regulatory permissions and licenses at one source. The widespread usage of this portal will enable faster clearances and improve the ease of doing business in India.

Royalty Tax

In a bid to make the cost of technology more accessible and affordable, Finance Minister Arun Jaitley has reduced the royalty tax paid by businesses and startup firms from 25 to 10 per cent.

Paramjit Anand

Executive Director, Acreaty Management Consultant (P) Ltd


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