Startups are producing innovative, complex, financial products using the public digital infrastructure.
Amitabh Kant, chief executive officer of NITI Aayog
India is witnessing startups leveraging Artificial Intelligence on solving the problems of accessibility, affordability and availability. Kant also said that AI startups hailing from the sectors of healthcare, agriculture, education, natural language processing, retail, and transport are changing the overall landscape in India. The startups are moving away from the conventional ways of doing business. Low-cost internet data plans, a talented pool of professionals, widespread phone usage and policy support given by the government have aided the growth of startups.
The main purpose of ‘New India’ is to create jobs for the jobless and the best way to do so is by enhancing skill development and introducing jobs with required skills. PM Narendra Modi’s economic development aims at this, Kant said adding that startup founders and their dynamic teams are showing unparalleled energy to seize every growth opportunity and disrupt traditional ways of doing business across industries. Interestingly, 44% of recognized startups have female directors and a large number of women are working in them. Also, 45% of startups are in small towns, acting as brand ambassadors for local products.
According to Kant, the degree to which innovation is happening in the startup segment and the pace of growth is very high. The number of domestic patent registrations has increased from 12,000 in 2015-16 to 25,000 in 2020-21. This shows that innovation has evolved in a big way and many startups are increasingly getting unicorn status.
The ‘Startup India’ initiative, which started around 2016, has exceeded expectations. It has been a phenomenal story. Over the years, the Indian startup ecosystem has not only matured but has grown manifold. Kanth said that public digital infrastructure facilities such as Aadhaar authentication and Unified Payments Interface (UPI), an instant real-time payment system developed by National Payments Corp. of India, have allowed government, businesses and startups to offer a vast range of financial services.
“This catapulted the behaviour of cashless transactions. If you look at Unified Payments Interface, digital UPI payment has become a way of life for millions. Eighty per cent of transactions in Unified Payments Interface are actually peer-to-peer. That reflects in a major way the replacement of cash in India,” he said. “The Indian startup ecosystem can solve any challenge India facing today. I am sure startups will get into many new and emerging areas and make India a global champion in all of these areas,” Kant said.
