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National Startup Day

  • Published
    14th Jan, 2023
Context

On National Startup Day, it is indeed a moment to celebrate that roughly half of all recognised startups in India are now based in Tier II and Tier III cities. 

National Startup Day

  • In 2022, Prime Minister Narendra Modi announced January 16 as the National Startup Day, to celebrate the spirit of the Indian startup ecosystem. 
  • The importance of January 16 is that it was the founding day of the Startup India initiative.
About

About Startup India Initiative

  • Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. 
  • To mark the occasion, the Department for Promotion of Industry and Internal Trade (DPIIT) is also organizing the Startup India Innovation Week from January 10-16.
  • While the DPIIT heads the initiative, five government departments — the Department of Science and Technology (DST), Department of Biotechnology (DBT), Ministry of Human Resource Development (MHRD), Ministry of Labour and Employment, Ministry of Corporate Affairs (MCA), and NITI Aayog — are primarily responsible for the initiatives under Startup India. 

Startup in India

  • India has overtaken the US and China as the third-largest environment in the world for startups, according to the Economic Survey 2021–22. 
  • In India, there are more than 80,000 startups, and more than hundred of them have become unicorns
  • Currently, there are over 88,000 startups recognised by the DPIIT.
  • The government recently announced a USD 200 million investment in startups that design code, tools, or devices.

Benefits of Startups for the Economy

    • Opportunity: Start-ups are providing an opportunity to the entrepreneurial youth of India an opportunity to express their idea and grow their finances exponentially.
    • Wealth creation has therefore become synonymous with start-ups.
    • Employment: The establishment of a start-up brings with it growth in employment opportunities.
  • Catering to the needy section: The creation of products or services can cater to the needs of a section of the Indian population and make them economically more potent. For example, the availability of online e-commerce platforms to traditional artisans who can now more easily reach their customers.

Current Issues/Challenges

  • Short-term solution: Statistically, a large number of start-ups do not make it big and are shut down.
  • Economic issues: Closure of start-ups leads to
    • loss of the capital invested in them
    • loss of employment
    • sets a demotivating example for those willing to take chance by establishing a business entity
  • Disparities: Disparities in salary and working conditions are also known to exist in the start-up ecosystem to a large extent.
  • Unregulated: The start-up sector being less regulated has also led to no minimum labour laws being applied to it.
  • Exploitation: Most labourers working for start-ups are not entitled to worker’s welfare legislation and therefore face exploitation.
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