Digital India: Driving The New Wave Of Entrepreneurship Across The Nation

A decade ago, we Indians envisioned ‘Digital India’ making its way through villages with modern tech and supercharging the startup ecosystem with groundbreaking technologies. Today, this journey is transitioning from aspiration to accomplishment, with the nation actively scripting its next chapter of progress. 

Digital India envisions an empowered society where digital is at the core of enabling progress and inclusion for all. This ambitious campaign represents a renewal of India’s competitive strengths on the global stage. 

By bridging digital divides between urban and rural geographies, and empowering youth, women entrepreneurs, and rural communities, Digital India has birthed a startup economy that responds to on-ground needs with scalable technology solutions. It has helped transform India into the third-largest startup ecosystem worldwide. 

Government’s Active Support In Expanding The Startup Ecosystem

The government rightly recognises the invaluable contribution of technology startups in charting India’s continued growth trajectory for the 21st-century digital age. 

Therefore, with the dream of new-age Bharat, where the world looks to India for the next big idea, the government has undertaken several initiatives since 2016. The focus has been on three key aspects: freeing entrepreneurship from bureaucratic hurdles, establishing institutional mechanisms for innovation, and handholding young innovators and enterprises. 

This commitment is reflected in nearly 50 regulatory reforms, including initiatives like Pradhan Mantri Mudra Yojna, Standup India Scheme, and Venture Capital Assistance Scheme, showcasing a dedicated effort to foster a conducive environment for Startups to grow. 

For instance, under the Startup India initiative, an INR 945 Cr Startup India Seed Fund was launched to provide crucial early-stage capital support so that fledgling startups can focus on refining their product-market fit. 

Other policies like tax exemptions, fast-track patent examinations, and eased procurement norms have helped smoothen regulatory hurdles for startups so they can concentrate on rapid experimentation and growth.

The Fund of Funds for Startups (FFS) Scheme, approved and established in 2016 with a corpus of INR 10,000 Cr, marks a significant initiative. This has provided startups with ease of access to diverse sources of funding. 

Additionally, incubation facilities and tinkering labs set up under the Atal Innovation Mission provide physical infrastructure for startups to advance from ideation to prototyping stages.

Equally noteworthy is the emphasis on mentorship through partnerships with organisations like Startup India Hub. This collaborative approach not only fosters a supportive ecosystem but also ensures that startups have access to valuable guidance from seasoned mentors. 

Bridging The Rural-Urban Divide

Gone are the days when entrepreneurship was confined to tier 1 cities. Today, innovation is thriving in the rural corners of the country with growing digital access. 

In this golden age of globalisation, digitalisation, and startup booms, the Digital India policy has empowered rural startups to utilise technology for creating inclusive solutions that cater to the diverse needs of all socio-economic strata.

Internet connections in rural areas have nearly tripled from 302.33 Mn in 2015 to over 851 Mn in 2023. This surge isn’t just about numbers; the improved connectivity, coupled with Digital India’s initiatives to promote technological innovations and digitisation, has allowed rural startups to offer products and services tailored to local needs. 

The BharatNet project stands as a validation of concerted efforts aimed at enhancing last-mile broadband connectivity even in India’s remote villages through an ambitious pan-India optical fiber network. 

This initiative has led to thriving startup hubs in small cities, utilising technologies like AI and cloud to create innovative solutions in sectors such as agritech, edtech, and fintech. Increased digital access has empowered rural startups to craft inclusive solutions, breaking geographic barriers and contributing significantly to Digital India’s success.

Additionally, the adoption of an open API architecture demonstrated by India Stack’s presence-less, paperless, and cashless layers has notably accelerated innovation in India’s startup fintech ecosystem as well.

Initiatives like Startup India Yatra have caught attention from all over the world. This unique initiative has encouraged innovation to evolve from every corner of the country and encourages ideas from the grassroots level. The outcome of these impactful initiatives is evident today, with nearly 48% of startups finding their roots in tier 2 and 3 cities, as per the Economic Survey of the Year 2022-2023.

Making Youth Future Ready

India is a young country with over 600 Mn people aged between 18 and 35. Our demographic dividend is projected to persist until 2055–56, peaking around 2041 with a 59% share of the working-age population (20–59 years). 

Initiatives like Skill India, PM eVIDYA, PM Kaushal Vikas Yojana, and PM YUVA are narrowing the skills gap and fostering accessibility to future-ready digital skills across India, including smaller towns and rural areas. 

Progress is already underway, as nearly 10 Mn youth benefit from the Skill India program annually and gain benefits from specialised training on emerging technology domains like AI, IoT, robotics, and big data analytics required by startups of tomorrow. 

Growing Rate Of Women Entrepreneurs

India is witnessing a powerful revolution with a surge of women entrepreneurs breaking barriers across all walks of life and regions. #NariShaktiForNewIndia is indeed crafting a narrative that will resonate globally, with women achievers becoming a new norm. 

Women today are leading sports media firms, managing construction companies, and security agencies, and setting new benchmarks in the fields of image consulting, e-commerce, science, and entertainment. According to a report by Bain & Companies, nearly 20% of enterprises in India are owned by women. 

Mahila E-Haat, which was launched in March 2016 as part of the ‘Digital India’, ‘Stand Up India’, and ‘Make in India’ initiatives, empowers women entrepreneurs with a free e-commerce platform. 

Other initiatives like Mahila Samriddhi Yojana, Women Entrepreneurship Platform (WEP), Nai Roshni, etc., are helping women across all stages of their entrepreneurship journey. 

The Road Ahead: Turning Challenges Into Opportunities

India’s startup ecosystem has reached new heights over the past few years. The nation’s 40th position amongst 132 nations in the 2023 Global Innovation Index, as recognised by WIPO, affirms the positive impact of continuous policy reforms and incentives on our innovation ecosystem. 

Crucially, the government initiatives have played a pivotal role in activating the startup landscape, propelling India to become the world’s third-largest startup ecosystem. However, to fully harness entrepreneurial potential, state governments must establish startup-friendly policies and incubation centres. 

These measures will provide crucial support to budding entrepreneurs in developing their businesses and navigating the challenges of the startup landscape. Moreover, there is an increasing need to prepare the youth of the nation for the new wave of AI and LLM. 

Moreover, startups operating outside main clusters often face challenges in fundraising, which emphasises the necessity for enhanced policy support. 

The establishment of special provisions for women entrepreneurs should persist, with a focus on the broader array of successful entrepreneurial models. By actively engaging with these challenges and opportunities, we can further nurture and expand India’s vibrant startup ecosystem.

The post Digital India: Driving The New Wave Of Entrepreneurship Across The Nation appeared first on Inc42 Media.