Electronics & IT: The Backbone of Technological Advancement

India's Emerging Role as a Global Hub for Innovation and Govtech

India is rapidly emerging as a global hub for innovation and Govtech, thanks to a combination of factors ranging from a booming startup ecosystem, strong government support, and a young, tech-savvy population.

India's startup ecosystem has matured significantly over the last decade, with more than 90,000 startups in operation, a growth rate of over 12%, and over $63 billion in funding raised since 2014, and over $12.1 billion in funding in the first quarter of 2021 alone, which indicates strong growth and investment in the Indian startup ecosystem. This is a testament to the entrepreneurial spirit and innovative mindset of India's youth, who are increasingly drawn to the tech sector as a means of driving social and economic change.

Strong Leadership and Government Ministerial representation has been a key factor in term of bringing the change at ground

Video Edited by: Dishank Joshi

One of the key drivers of India's startup growth has been the government's efforts to create a supportive regulatory environment for innovation and entrepreneurship. Initiatives like the Startup India program, launched in 2016, have played a key role in streamlining the registration process for startups, providing tax incentives, and facilitating access to funding and mentorship making it as one of the largest programs that has given rise to 90,000+ #startup since its inception. This has helped to attract a wide range of investors, from venture capitalists to corporate giants, who see India as a fertile ground for disruptive innovation.

In a big boost to India’s dream of becoming a semiconductor nation, now the US is eying India as a true partner for making the semiconductor supply chain more resilient and diversified. US Secretary of Commerce Gina M Raimondo, who is on a four-day visit to India, said an MoU would be signed on semiconductors during her current trip.

Some of data and stats to represent India and growth of India Inc.

• 2010 Indian first Unicorn ‘Make My Trip’ was born 
• Today with 100+ Unicorn, we have 70 to 75+ Soonicorns in the country 
• Ecosystem observe India will have 250+ Unicorn by 2024-25 
• India is ranked as 3rd biggest Startup Ecosystem in the world, having 100+ Uniciron, 90k+ startups, out of which 22k to 25k are in tech domain, and 46 of them joined Unicorn club in 2021. 
• The acceleration of Startup growth was worldwide; in the #US, out of 489 unicorns, 254 were added in 2021; For China, the number was 74 out of 301; and for Israel, it was 33 out of 43. 
• Today India is ahead of Isreal, Netherlands, Switzerland and many other countries regarding the number of Startups. 
• India, a country of millennials, has 440 Million millennials making it one of the biggest consumer markets in the world, with 830 Million Indias as Internet subscribers.
• The affordability of Data rate has unlocked access democratised utilised across the populations and during the rise of new economic growth engines. 
• 2021, indeed, was a milestone year for the Indian tech ecosystem with Indian startups raising 142 USD Billion in over 1583 deals. 
• It was the year when after 20 year since Infosystem was listed in US Stock Exchange, Indian startup Freshwork was listed there. 
• Most Interesting 2021 was when Technology and Digital platforms became mainstream in India's cultural fabric. An interesting anecdote from Industry is how today we order breakfast from Zomato, fresh vegetables from Amazon to Big Basket, we travel using Ola and Uber and stay in Oyo, All through Startups, and the complete payment from 1 Rupee to any value is made possible using UPI
• From 2014-2021 Indian startups have collectively raised US $ 112 B. 
• Today, India has 250+ quality accelerators, 1000 to 1200+ Incubators and 250+ active Institutional and VC Funds. 

But India is not just house of 90k+ startups, but a country with 23L+ companies

Mr Deepak Bagla , Managing Director & CEO of Invest India , delivered a keynote address at the Treasury Leadership Forum 2023 in #Mumbai. He spoke about India's future, the country's digitization change, and the most unprecedented transformation we are facing in terms of scale and pace. He also spoke about the story of start-ups in India which is about entrepreneurship, the new generation, and the ability to access unique opportunities.

Another area where India is making significant strides is in the field of #Govtech, which refers to using technology to improve government services and governance.

The budget for 2023-24 has allocated Rs 16,549 crore for the Ministry of Electronics and Information Technology, which is nearly 40% higher on year. The budget for FY2023 had allocated Rs 14,300 crore for the IT ministry.

The government has allocated Rs 3,000 crore for the Indian Semiconductor Mission in the Union Budget 2023-24, which is likely to help kickstart the development of the semiconductor and display manufacturing ecosystem in India.

The 2023 budget is a game changer for India's telecom sector, with Rs 52,937 crore capital infusion for BSNL, 100 labs to develop #5G apps & emphasis on 4G and 5G #technologies. A #growth-focused budget with a focus on digital India and industry 4.0. The #telecom sector stands at the cusp of a revolution! #Budget2023

The budget is also high on technology, both in usage as well as leveraging technology, especially digital technology and industry 4.0 technologies.Another positive in the budget is its focus on future industries and AI, while it provides a shot in the arm of the country’s transformative digital journey. The push for drones can only incentivise future industries. Jaijit Bhattacharya has written a detailed analysis of the budget and how it will have positive impact on #IT & #5G

The potential benefits of Govtech are enormous, ranging from improved service delivery and citizen engagement to greater transparency and accountability in governance. The Indian government has already launched several initiatives in this space, such as the #DigiLocker platform, which allows citizens to store and access their personal documents online, and the #MyGov portal, which facilitates public participation in policy-making and governance, #UPI system, complete backbone for the entire fintech ecosystem today and helping directly and indirectly to thrive the young startup ecosystem.

We definitely cannot n should not slow down the pace of innovation. Yes, technology will continue to change the world – we should all make sure that it changes it for the better. that's on us, humans - written by Debjani Ghosh , President, nasscom while sharing an article written by Our World in Data

While on the other side, this had a great impact on India emerging as a leader in the world. The US and India are enhancing bilateral collaboration for the development of a semiconductor design, manufacturing, and fabrication ecosystem in India. India's growing prominence as a hub for innovation and Govtech is also attracting attention from global players. According to a report by the Financial Express, several international firms, including Microsoft , Amazon , and Google , are investing heavily in India's tech sector, focusing on developing cutting-edge solutions for Govtech and related areas.

The Growth Story on IT and Electronics is something that was also spoken by Hon'ble Minister Kalvakuntla Taraka Rama Rao / KTR (Minister for IT, Industries and Municipal Administration at Govt of Telangana) during one of his speeches while inaugurating the IMAGE Tower at T-Hub

Overall, India's emergence as a global hub for innovation and Govtech is an exciting development with far-reaching implications for the country's future growth and development. By leveraging its strengths in technology and entrepreneurship, and with strong government support, India has the potential to become a major player on the global innovation stage.

Bonus for Startup and Incubators looking for Funds:

Something that will help raise funds for your ventures and innovations. Please be on the lookout for various ministries and divisions that are heavily investing on startups.

The recent launch of SIDBI(Small Industries Development Bank of India) Ubharte Sitare and other initiatives that for sure need to be looked by the founders and startups.

Want to spend your weekend reading one of the best reports I learned about last week, to understand India and its ecosystem? read the Indus Valley Annual Report by Blume Ventures @ Report shared by Amal Vats and Sajith Pai

Reference & Thanks:

Special Mention: For video editing Dishank Joshi

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