Multinational corporations had a significant part in the expansion of the Indian economy through Globalization. Now, the recent trend of founding startups in India has transformed the economy by increasing GDP and revenue.
Rise of Indian startups
Startups in India have blossomed, and they are having an influence on the economy. Registration for new businesses has surpassed 1.43 million due to rising demographics and favourable surroundings such as an open and commercial culture. Because India has the youngest population, with an average age of 28, Indian entrepreneurs are among the world's youngest.
Inception of growth
With the imminent rise in the Indian startups, new markets and opportunities have been created, alongside disrupting the established business models in the Indian market. In 2022, 14 out of the present Indian startups have made to the list of unicorn startups that show tremendous growth.
The startup movement is bringing a revolutionary change in the Indian market. Some startups promote creative customised solutions for clients, while others use technology such as AI (Artificial Intelligence), IoT (Internet of Things), and ML (Machine Learning) to improve customer experiences.
Another subset of businesses (Edtech startups) enhances the learning experience by making skill-learning simple through the use of novel technology. Indian startups have a rapid influence on India's economic situation.
Ed-tech startups kickstart the digital disruption
Education and skills are crucial components of our country's success in this fast-paced transitional period. Reimagining skills via education is the essential principle for benefiting not just economic development but also economic equality.
What is altering our environment when it comes to skilling and education? The factors driving the transition of learning, skilling, and educating include digital disruption and the entry of ed-tech and skill-tech businesses into the market.
The education technology sector has evolved, and many of them are impacted by creative learning solutions given by cutting-edge technologies. The majority of them have evolved into Skill-tech startups, with a greater emphasis on skilling, reskilling, and upskilling.
Skill-tech startups have advanced the quality of education by concentrating on skills and utilising modern-day technology, whether it be dancing, coding, painting, or language acquisition.
Skill-tech businesses have begun to contribute to the Indian economy by creating more employment, rising GDP, and training people to get skilled and upskilled for the impending Fourth Industrial Revolution.
The skill-tech startups have offered personalised assessments, immersion, community sense, skill development, networking, AI-enabled learning experience and real-time scenario engagement.
Obstacles in the way of India’s skill-tech startups
Regardless of the strength of Indian startups, 90 percent of them collapse during their first five years in the market. According to a survey of 77 percent of venture funders, many Indian skill-tech businesses lack groundbreaking innovation based on new-age technology or a distinctive business strategy.
Considering India's vast market size and vigorous entrepreneurial activity, Indian startups account for just 4% of internationally known Unicorns.
Another question to address is that venture capitalists have indicated that businesses fail because they are unable to select the right people with the proper skills.
Digital empowerment accelerating transformation
Adapting technology in every aspect of life is vital in this era and we all understand. From digital payments to ordering food, from learning dance online to ordering bulk customised gifts, digitization has proved to be the god of all ease. The same digital empowerment has paved a way for a transformation.
An integrated digital ecosystem is ideal for driving transformation because it provides all of the available tools, the necessary skills, and data collecting for maximum empowerment.
Challenges and road ahead
The future of Skill-tech businesses is bright, but not without hurdles. The policies of the government are continually being improved and simplified.
Startups are dramatically altering the lives of ordinary people. The combination of technology and integrated solutions provides more with a single click.
More startups means more automation, which will increase consumer and user behaviour to acquire anything, anywhere, and at any time. Skill-tech firms will feed the need of consumers to become competent with a single click using the same technique.
The biggest challenge we may have in the future is that people will seek quick answers or quick skill acquisition. Currently, the majority of skill learning is emphasising abilities that are vital and relevant to today's industry. We should shift course here and find a better answer. Mental, social, and physical well-being abilities are all equally vital in and for society. Since the Work-from-Home trend began, it has inspired individuals to work in addition to working on their creative side.
Our life experiences, problems, and hardships have encouraged us to create a variety of amazing items in India.
To balance either side, skill-tech startups are developing new concepts and skillsets to touch the masses.
(Divanshi Gupta, Founder, Ucanji-a skill learning platform)
