I'm an avid traveler and tech enthusiast myself and follow various businesses in the tech sector.
For many people, India has always been at the forefront of a perfect representation of Culture, Diversity, and Education. If you ask any foreigner what are the three things that come to their mind when we talk about India and be sure that one of the above is going to be there on their list.
Most people will say that India is a developing nation and is on a faster pace as compared to the others and, why won't it be, after all, it is the fifth-largest economy by market exchange rates and the third-largest by purchasing power parity (PPP). But what is the reality, and how does it compare to the other developed nations when it comes to India's technology and startup ecosystem.
Why Compare the Tech Industry and Startups
For most of the world, tech companies dictate the economy of the country and not only that, but they also bring the country to the world stage by being constantly in front of the media.
This boosts the countries position in terms of economy, employment, and overall likability of the country for migration and brings in extra talent via outsourcing.
These industries not only show faster growth rates but play a key role in raising the overall socioeconomic stature of the people involved, not only the CEO but also for the general workforce.
Where Does India Stand
India ranks 23rd in terms of the startup ecosystem, which means it is one of the counties that provide a friendly environment for startups to thrive.
But it doesn't mean that there is no room for improvement, there are 22 more countries above India that are much more startup-friendly, and they do give tough competition when it comes to luring the companies to open up their offices on their land.
India has never been in a position where it can dominate the tech space on a global level. Though companies like Wipro have been at the forefront of representing India in the tech space, there are hardly any achievements that it can boast about on an international level.
Why Is It Difficult for India?
Even though the rankings of the country have seen improvements as compared to the past years, it is still no doubt that there are still some challenges that the country faces even today that make it difficult for companies and startups to establish.
Culture:- Entrepreneurship and startups are only a recent phenomenon in the country. It is only in the last decade or so that people in the country have moved from job seekers to job creators. In a country that gives a lot of emphasis on getting a stable job that pays well, this can be considered a major success.
Most startups don't even get off the ground, most of the time they have to face failure. More often than not, an entrepreneur needs to be prepared to face failures and unprecedented hardship. And culturally, we're not groomed to face failures and this makes it hard for us to step into something that can show us so much uncertainty.
But the past few years have shown us that the people are not only there to contribute as a workforce but are also eager to take chances and work on their dreams of bringing a change or becoming an entrepreneur.
Funding:- An idea has no worth until its implemented. And to implement an idea, you sometimes need capital. Access to capital has been a challenge for Indian Entrepreneurs as the number of investors writing large cheques are very limited. The problems of an entrepreneur do not end on seed funding, as they also have to seek fundings for series A, and other series like that, which makes scaling for startups more problematic.
Mindset:- Being in a culture that tells you to look for a stable job and to follow a set of rules, it is difficult for people to think out of the box at times. The reason people were job seekers is that they, were told that business is a kind of gamble and is not safe at all, people tend to make as well as lose all their fortunes.
According to the older population (elderly people of the family), it is much safe to become a doctor or an engineer rather than being an entrepreneur. This type of mindset creates a bit of apprehension towards entrepreneurship as a career.
Policies:- The government has a larger role to play when it comes to providing a helping hand to entrepreneurs. The policies play a vital role in making a country much more business-friendly, to attract more startups and businesses, which in return not only shows a good balance sheet for the company but also provides a boost to the economy.
Its difficult to start a business in India, and myriad laws and regulations mean it takes about 30 days to comply, compared to just 9 days in OECD countries. The government’s role has so far been limited to giving out grants and loans, but without an effective, enabling environment.
What Are They Doing About It?
Over the past decades, the government has tried its best to make the nation business-friendly, not only for startups and the tech industry in general but has been putting efforts for non-tech companies as well.
Over the years, the government has put forward many schemes and bills that take the country a step closer to making it business-friendly. Various funds have been set-up directly by the central and the state governments which, play a role in giving a boost to the startups.
Things they can use for their advantage
Population:- India is a country of 1.4 Billion people, has a large population by its side, which can play a huge role in, not only providing a workforce but also some local talent. With the schemes introduced by the government, one can take advantage of them, not only to start but also to scale his/her business.
With the large population mostly consisting of young men and women, the country can also take advantage of the workforce it can provide for cheap rates to lure in the companies to set up factories and offices.
Internet Penetration:- With a high population, India has one of the highest internet user bases in the world, which not only allows the companies to place their products in the forms of ads but also gives the population an idea of the career opportunities present there, presenting the scope of employment and opening up the minds of those who, are still stuck in the older times.
Overall it can be easily said, that India has a long way ahead before it can come in the top 10 list of the world's business-friendly nations. The country has made a few changes to its policies to boost economic growth and business establishments but, they are not enough. That does not mean that they don't care about it, they are actively taking participation and constantly forming policies that not only support foreign businesses but also help boost local businesses and are constantly trying to find the right balance.
Overall, it is clear that now is the right time to set up your business in India if you’re into that.
This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.
© 2021 YourRandomBrother