India has grown from 29,000 startups in 2014 to more than 55,000 by the end of 2020, with 3,200 startups raising over US$63B in funding since 2014. Starting with a single unicorn in 2012, India is now home to 34 unicorns, with a combined value of US$115B, and another 52 ‘soonicons,’ predicted to become unicorns by 2022.
This acceleration is redefining India’s economy as the number of new businesses valued over US$1B continues to rise, creating a new ecosystem teaming with incubators, accelerators, venture capitalists (VCs), and angel investors.
These attributes, combined with the country’s strong entrepreneurial spirit, open business culture, and progressive regulatory systems, have seen India emerge as the world’s second-largest startup ecosystem, next to Silicon Valley, and a promising market for German startups.
Here are Five Reasons Why Startups Should Do Business in India:
1) India’s economic boom is expected to see 500 million Indians move into the middle class within the decade, driving growth across all consumption categories, especially demand for online solutions and SaaS applications.
2) India is fast becoming a digital-first economy, with its Digital India campaign, steadily increasing the country’s digital infrastructure and digital literacy, connecting vast rural areas with high speed internet and priming the country for business.
3) India has been a global IT hub since the 1990s and is now shifting its focus towards digital technologies such as cloud computing, Artificial Intelligence (AI), and Internet of things (IoT). Additionally, India is ranked 3rd in the world for attracting tech investments, and is fast becoming one of Asia’s leading deep tech hubs with one in five startups in the country now leveraging deep tech. This is largely connected to India’s next big asset:
4) A fast growing talent pool, which means talent in deep tech and other areas is available and affordable, creating tremendous opportunities for startups across all sectors to leverage deep tech for competitive advantage.
5) Additionally, India offers a wide variety of partnerships, enabling foreign firms to share investments, reduce risks, and achieve success. With more than 1,600 Indo-German collaborations and 600 Indo-German joint ventures.
Source: All information is taken from the German Accelerator Snapshot Report
Do you want to learn more about India and get valuable tips and insight to navigate India’s business landscape and culture? Then check out the full Snapshot Report by German Accelerator.