PM Modi Laudes Indian Startups in his monthly program Mann ki Baat

Indian Prime Minister Mr Narendra Modi lauded the growth of Indian startups in his monthly program “Mann ki Baat.” On May 29, 2022, Modi addressed the 89th edition of the radio show Mann Ki Baat. The rapid growth of the Indian startup ecosystem reflects the spirit of the new India. 

Followed by the US and China, India is the third-largest startup ecosystem in the world.  

India registered its 100th startup achieving the unicorn status on May 5, 2022. According to the Ministry and Commerce Industry, Indian unicorns are now valued at more than INR 330 billion. 

What PM Modi has to say

“Our unicorns are diversifying, and the world of startups reflects the spirit of new India, with entrepreneurs also coming from small cities and towns. A few days ago, our country achieved a milestone that inspires all of us and gives us renewed confidence in India’s capabilities. You feel elated when an Indian batter scores a century. However, India has scored a century in another unique area. Currently, the total worth of these unicorns is about INR 330 billion, while each of the unicorns is worth Rs 7,500 crore,” Modi said while addressing the nation.

“This shows that in India, the one who has an innovative idea can create wealth. I am confident that we will witness startups reaching new heights in India in the coming future. Right mentoring can take a startup to new heights. India has many such mentors committed to helping bring more startups into the country,” he further added.

The Honorable Prime Minister lauded Madan Padaki from One-Bridge for promoting rural entrepreneurs. He also appreciated the efforts of Sridhar Vembu, CEO of Zoho Corporation, in grooming Indian startups.

The scenario of the Indian Startup Ecosystem 

The Government of India launched Startup India in 2016. The initiative aims at empowering local startups by developing a stronger ecosystem for their growth. 

Indian startup unicorns’ average annual growth rate is higher than in the United States, the UK and other countries. Startups in India continue to create value despite the Covid-19 pandemic-led economic slowdown. 

Earlier in 2021, India witnessed a record-breaking landmark for startups, with 44 new entrants into the unicorn club. One out of every ten unicorns globally is born in India. Around 75 startups were also added to the soonicorn list in the January-March period. The soonicorn list states the companies’ names likely to achieve a USD 1 billion valuation shortly. The list includes names such as Tracxn, Blinkit, Plum, Airmeet, Atlan and Lambda Test.

The problem faced by Indian Startups

According to the official data, more than 65000 startups are operating in the country. However, some industry players still struggle for viability amidst the lack of institutional support. Moreover, profitability remains a significant issue for many Indian startups. Only 18 of India’s 100 unicorns have attained profitability in the 2021 financial year. At the same time, more than half reported deep losses. 

Currently, Indian startups are facing a funding slowdown. Various venture capital firms warn startups about the economic downturn. 

Recently, Silicon Valley-based startup accelerator Y Combinator addressed a note of caution to all its portfolio founders. The note warned the founders to plan for the worst. Meanwhile, Sequoia Capital also issued an advisory note to its portfolio founders. The firm asked the companies not to expect a quick recovery in the current market conditions.

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