Indian start-ups to play a key role in driving economic growth
India’s Prime Minister Narendra Modi has urged successful business founders to mentor young innovators who have an important role to play in driving the country’s economic growth.
Speaking at the recent Startup Mahakumbh event, the PM also asked micros, small and medium-sized enterprises (MSMEs) and industry bodies to identify the problems that they are facing in terms of manufacturing and their supply chains. He suggested they shared their experiences so young entrepreneurs can not find solutions for the challenges they face and also get new ideas for their start-ups.
The three-day Startup Mahakumbh event, supported by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, brought together start-ups, unicorns, investors, industry and ecosystem stakeholders under one roof to showcase India’s entrepreneurship, technology, and innovation. It served as a platform for exchanging ideas that contribute to building a robust and resilient start-up ecosystem in India.
Modi told attendees that India has the third-largest start-up ecosystem in the world. He said: “This has been possible due to well-thought-out policies. India took the right decision at the right time – Under India’s start-up Abhiyaan initiative, innovative ideas got a platform. The country also been focusing on establishing incubators for start-up at educational institutes.”
He pointed out that today India has 110 unicorns – privately owned start-up firms with a value of over $1 billion – and he also noted that nearly 45% of the start-ups are led by women. He also added these start-ups have filed 12,000 patents.
Modi said: “The country can say with pride that the start-up ecosystem is not limited to big cities but is spread across 600 districts in the country. This indicates that establishing start-ups have become a social culture.” He said that currently start-ups have emerged in a diverse set of fields including agriculture, education, finance and space.
“In the past, education meant government employment. There were challenges in seeking funds to start a business. The start-up ecosystem has broken that cycle and brought a revolution in the country. Youth have chosen the path of becoming job creators instead of job seekers,” Modi added.
The PM said that the Unified Payments Interface (UPI) – a digital and real-time payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI) – has reduced the urban-rural divide, and has democratised technology.
“We have become the fifth-largest economy and the youth have contributed immensely. In my third term, India will become the third-largest economy and I firmly believe start-ups will play a significant role in achieving this goal,” Modi added.
Job opportunities increasing in SMB sector
WorkIndia, a leading recruitment platform, has seen an 11% increase in paid job postings by SMBs, representing a total of two million jobs.
It said telemarketing was the dominant sector, making up a substantial 26% of SMB activities. “This high percentage underscores the value of direct communication and engagement with customers, which are crucial for fostering relationships and driving sales,” the company said.
The back-office operations sector was ranked second for opportunities, representing 17% of SMB activities. WorkIndia said: “This highlights the importance of these businesses in providing administrative and support functions, which are essential for the smooth operation of companies in various industries.”
The accounts sector holds a share of 3.81%, underscoring the essential role SMBs play in financial management and accounting services, it said.
Nearly 490,000 employers opted for a digital platform when recruiting, signifying a growing preference among SMB players for digital solutions. The sector has witnessed the highest growth as Delhi (24%), followed by Mumbai and Bengaluru with 22% and 16% respectively, underscoring their crucial roles as hubs for small and medium-scale enterprises.
Commenting on the data, Nilesh Dungarwal, CEO at WorkIndia, said: “SMBs are poised to emerge as key contributors to India’s economic resurgence. This data not only reflects the growing digital maturity within our sector but also signals a powerful collaboration between businesses and government initiatives.
“We look ahead with optimism, anticipating that these insights will inspire further innovation, job creation, and a flourishing economy led by the vibrant spirit of small and medium-scale enterprises. With increased digital adoption and the government’s financial support, we anticipate a substantial contribution from SMBs towards India’s economic growth.”
