Driving Innovations, Leveraging Technology in Indian Business Ecosystem

Emergence of a Vibrant Innovation Ecosystem: Rapid penetration of digital technologies over the last two decades has ushered in business innovations in both incumbent firms and in startups. By the end of 2020, India found its place among the top four countries with a vibrant startup ecosystem with 36 unicorns. Confluence of Enabling Factors: A confluence of enabling factors of technology, talent, capital and supportive policy environment has led to the growth of the start-ups through the introduction phase (2006-2010), early growth phase (2011-2015) and accelerated growth phase (2016-2020). Growth of Indian Start-up Ecosystem: Venture capital investments of $ 19.85 B went into 3,442 firms funding innovations during 2006-2020. The investment of $3.9 B in 2006-2010 grew by 65% to $6.4 B in 2011-2015 period and further by 48% to $9.5 B in 2016-2020 period. Ecommerce and Fintech sectors received larger share of the investments contributing 11 of the 36 unicorns.Accelerating Innovation led Economic Growth: An enabling environment to further accelerate innovation led growth requires continuous focus on key enabling factors: (a) Technology-ensuring affordable digital technology access to rural population, adoption of deep technologies across start-ups (b) Talent - designing innovative mechanisms to attract and support talented entrepreneurs (c) Capital - accelerating investment flows by triggering investment-innovation-investor returns spirals in multiple sectors and (d) Policy Support-formulating proactive supportive policies with a fifteen year and five year planning horizon focussed on all round development of the rural economy leveraging novel technologies; providing institutional support to exploit global market opportunities involving industry and academe.