India is a country of 1.3 billion people and is considered a developing economy all over the world. For economic growth, it is important for the unemployment rate in the country to go down and for the citizens of India to earn a living that improves their lives. Startups are new ventures that can bring innovation, new products, and services, infrastructure, and employ millions in India. The following are benefits of startup ventures and why they are important in a country like India:
Disruption & Innovation
There are companies and groups of companies that have been operating the same business model in India for decades. The Indian economy needs disruption which is provided by new startups which are changing the way businesses run in India. They bring efficiency, new methods of improving business, and also bring in new expertise into various sectors of business. Startups are highly innovative and make countries like India’s leading destinations for new technologies and innovative growth. India has the talent for innovations that can change the lives of the citizens for the better.
Job Growth & Rising Wages
Competition is important for growth in all sectors of business in India. New startups mean new job growth opportunities in India. Startups in India have become a priority for the government and the government has introduced “ease of doing business” and tax benefits for such firms. These firms open up in urban, semi-urban, and rural areas of the economy creating job growth in the economy. As the number of businesses rises in India, the unemployment levels decrease and standards of living rise in the country. This means all businesses have to contribute to wage growth in a country like India.
New Products and Services
New businesses generally have a new type of product or service that they want to sell to the larger public. This means that the consumers get a broad variety of products and services to choose from which improves the standard of living in India. India is a developing country and the new startups usually have superior quality products and services in India. Younger and more educated Indians usually establish these startups. These Indians have exposure to new ideas and technologies from all over the world.
Improves Infrastructure & Capabilities in Various Sectors
A new and more streamlined way of doing business eliminates bottlenecks and infrastructural problems. This means that startups usually create an environment around them that is conducive for growth in the locality. New startups bring civil infrastructure, create streamlined logistical chains, create a digital infrastructure, and improve capabilities in different sectors. Capabilities improve in all sectors of the economy and startups can create new economic zones in a country like India which needs more cities and towns that employ its millions of citizens.
Improves Value of Indian Companies
Indian industry is still in its nascent stage and needs to compete with global brands for market share not just in India but all over the world. New innovative startups make the world notice innovation and technological advances of India. For India to become a developed and rich country that can take care of its citizens, economic growth is the key. Startups in their thousands are needed for such economic growth, as India is a really large country with millions moving away from agriculture to other sectors of the economy.
The Indian government has made startups in different sectors of the economy a priority. New startups need to flourish for growth in various sectors of the economy. Startups are important to India’s progress in the future and need to be cultivated in a country like India.
Author: Nancy Kapoor