Today, India is on track to becoming the third largest economy, our economic boom fueled by offshoring, investment in manufacturing, the energy transition, and our advanced digital infrastructure. However, for India to truly prosper, Bharat has to come along.
As of 2015, 67.2% of India’s population still lived in the heartland, rural portions of the country. That’s 2/3rd of India’s human capital. It is expected that by 2050, urban-rural segregation will be 52.8% and 47.21%. What’s driving this change? Aspiration. People want access to better jobs, to earn more, live better, have access to better schools and healthcare.
But are businesses only thriving in the metropolitan cities? Smaller cities such as Indore, Jaipur, Raipur and Chandigarh are becoming breeding grounds for entrepreneurs, offering benefits over big cities and emerging as startup hubs. Technology has paved the way for a meritocracy, by first levelling the playing field. No longer are Indian businesses constrained by the limits of geography and distance.
India will have 1 billion smartphone users by 2026, our internet rates are 1/5th of what the average US customer pays, and the mobile device market has products that work for every kind of price conscious consumer (you can buy a smartphone for under $100). Quietly, India had been building a digital infrastructure that allowed people to not only work from home, but shop from home, access telemedicine, avail govt benefits, bank from home, study from home and thrive from home.
The Covid-19 lockdowns showed us that physical boundaries don’t matter as much: we all shopped from businesses all over the country. For businesses, the impact was much more profound. A business based out of Tezpur was accessing the same customers, finance and support that a business in Mumbai was. Even as the lockdowns eased, these advantages remained.
India’s technology driven startup boom
India’s Fintech revolution is now legendary. We are amongst the fastest growing Fintech markets in the world, with over 2,000+ govt recognized fintech startups. Our market size was $50 Bn in 2021 and is expected to reach $150 Bn by 2025. UPI has crossed our borders, and is now being implemented abroad. More importantly, the Indian Fintech ecosystem makes it possible for people all over the country to bank online, make and receive secure payments across wallets and accounts, access wealth management and personal finance services, insurance, and even receive help with their business’ accounting and regulatory functions.
Not only did India achieve an admirable 2 billion vaccinations in just 18 months, our healthcare industry also underwent a revolution. Telemedicine is expected to touch $5.4 Bn by 2025, and the National Digital Health Blueprint is expected to unlock an additional economic value of over $200bn in the next 10 years. All these changes are making it possible for people in rural areas to access quality medical professionals remotely. Next generation AI powered diagnostic devices are going to both reduce diagnostic errors, and save time. Not only that, by making these devices available in rural settings, patients can save valuable time and money by only travelling to the city for medical care when absolutely necessary.
E-commerce is another space that is fueling growth beyond metros. While all e-commerce platforms collapse the boundaries of geography, the Department for Promotion of Industry and Internal Trade (DPIIT) has created an e-commerce platform that truly democratises reach. The ONDC platform is expected to break all silos in e-commerce. Not only will this platform interoperate with other apps, it will also provide an open and level playing field to smaller players who do not have the advertising and marketing budgets bigger players have. So now, small players from across India can compete in the global marketplace, without artificial choke points, or unnecessary expenses.
India’s Startup Ecosystem
While all this growth may seem organic, it has had the support of India’s growing startup ecosystem.
Startup ecosystems are networks of resources that foster innovation through startups. These ecosystems provide startups access to mentorship, office space, and investment options and also enable them to network with other businesses. These ecosystems don’t just happen – they require conscious assistance and resources from governments, local authorities, academic institutions, and major corporations.
India’s startup ecosystem received a huge boost through the GOI’s Startup India initiative, which began in 2016. It applied a three pronged approach:
- The establishment of the Startup India Hub, which creates a single point of contact for the entire Startup ecosystem and enables knowledge exchange and access to funding.
- A compliance regime based on self certification which significantly reduced regulatory burden on startups
- The rollout of a mobile app and portal that allows startups to interact with the government and regulatory institutions from wherever they are.
In addition to this, the DPIIT has approved over $1.33 billion in funds to boost the Indian startup ecosystem. Schemes such as Aspire (A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship), Stand-Up India and the Atal Innovation Mission also make it easier for entrepreneurs from diverse backgrounds to take their innovations to a global audience. Aspire focuses on agro based industries through incubators, while Stand-Up India facilitates easier loans for SC, ST and women entrepreneurs. Atal Innovation Mission nurtures startups and helps them scale.
Regulation that is good for business, and good for people
India’s progress in these areas, particularly in light of the downfall of global players like FTX and Theranos, points to the strength of the Indian regulatory ecosystem and quality framework. Here, checks and balances go beyond mere regulation. The Quality Council of India, formed in 1997, has worked tirelessly to create an ecosystem of quality that cuts across customers and vendors, employees and employers, regulators and businesses.
QCI’s work doesn’t exist in a vacuum. Each accreditation standard and each certification is arrived at in consultation with the industry bodies most impacted by said regulations. Once formalised, the QCI then creates training assets that make it easier for businesses and regulators to socialise these standards. Finally, QCI also helps maintain quality inspectors and auditors through accreditation of these training and consultation providers.
QCI is made up of five constituent boards, each of which have their own distinct span of coverage: National Board for Quality Promotion (NBQP), National Accreditation Board for Certification Bodies (NABCB), National Accreditation Board for Education and Training (NABET), National Accreditation Board for Hospitals & Healthcare Providers (NABH) and National Accreditation Board for Testing and Calibration Laboratories (NABL).
India’s quality standards are, for the most part, ahead of global quality standards, if not at par. NABCB is a member of International Accreditation Forum (IAF), International Laboratory Accreditation Cooperation (ILAC) & Asia Pacific Accreditation Cooperation (APAC) as well as signatory to their Multilateral Mutual Recognition Arrangements (MLAs / MRAs) for numerous accreditations. NABH is an Institutional Member of the International Society for Quality in Health Care (lSQua). It is also a member as well as on the Board of Asian Society for Quality in Healthcare (ASQua).
All of these international tie ups mean that Indian quality standards are always aligned with global standards, giving Indian businesses the ability to compete toe-to-toe with global players. QCI’s Zero Effect Zero Defect (ZED) certification program distils these learnings for the MSME sector. This, combined with ONDC, creates an ecosystem that makes it much easier for small businesses to effectively compete with large, international players.
Conclusion
It is any wonder then, that India has the third largest startup ecosystem in the world and has already launched over 57000 startups with a combined valuation of over $450 billion? Or that these startups are spread out all across the nation and not concentrated in the metros?
Our MSMEs are another reason to celebrate. India’s merchandise exports crossed the $400 billion milestone in FY22. MSME’s are responsible for 40% of our exports. Not only that, they’re responsible for 30% of our GDP and 45% of our total manufacturing output. They also employ 114 million people. The MSMEs too, come from all over the country.
For India to truly prosper, Bharatiya aspirations must be given wings to fly. Between progressive government policies, a strong quality ecosystem and a regulatory framework that has protected the Indian economy from the worst ravages of global economics, India is creating the conditions for Bharat to achieve Gunvatta se Atmanirbharta.
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