India is now hosting the planet’s third-largest technology ecosystem. Over 49,000 startups have been launched globally, raising a combined total of more than $51 billion.
The time to challenge Indian startups is over – they’ve come here to live, develop, and take over. Indian startups like Swiggy, Udaan, Meesho, Bulbul, etc. raised more than $11 billion in 2018, excluding Walmart’s Flipkart acquisition at a $16 billion valuation. We saw $13.7 billion joining startups in 2017, compared with $6.7 billion in 2016 – a double capital rise invested.
In the last five years, four large macro vectors have converged:
1. The consumption-driven growth story
After decades of being overlooked and written off, India is now on the radar of any global investor as the fastest-growing big economy, which will propel the world’s development forward.
This trend was no longer under consideration-since liberalization in 1991. India has grown from a nominal GDP of $275 billion in 1991 to $2.6 trillion in 2018 at a compound annual growth rate of 8.7 percent in dollar terms. This trend was no longer under consideration-since liberalization in 1991, India has grown from a nominal GDP of $275 billion in 1991 to $2.6 trillion in 2018 at a compound annual growth rate of 8.7 percent in dollar terms.
2. An atypical enterprise-technology market advantage
Indian industry is not seen as a significant manufacturer of cutting-edge technologies. Indian IT firms, however, now dominate the sector globally. Four out of the top 10 and three out of the top five multinational IT firms by market capitalization are Indian amongst TCS, Infosys, Wipro, Cognizant and HCL. It is incredible to remember is that these businesses have achieved this size in their base country without the benefit of a broad local business sector. Also, now, their Indian customers account for less than 10 percent of their annual sales.
3. High-quality tech talent
Technology businesses have already educated one of the planet’s most prominent tech talent bases on their road to global conquest. With over 4.5 million employees working in IT in India, this is the world’s second-largest reservoir of IT talent. It’s no wonder that India today has nearly 40,000 startups, with more than 5,000 new startups launching each year. Bengaluru itself has more than 1.5 million people employed in technology, which is approximately 15% of the population of our city.
4. A gigantic consumer install base
At last, we can reach the majority of our fellow citizens online now. Never before have so many of us come united on a single forum-India currently has nearly 500 million internet users and is projected to have almost a billion people online by 2021. Indian businessmen like MDH Uncle now reap the benefits of the ‘India Thesis’ on the reservation of a foreign investor. The Indian capital is late in the game but will now concentrate on catching the latest prospects on the road to India’s future as the US and China’s third-largest economy behind. Even if this is not the case, one thing is sure – there has never been a better time to be Indian.