Indian economy is growing at high speed. India has the third-largest startup ecosystem in the world while being the world’s sixth-largest economy. Despite the epidemic hitting in 2020, the ecology is thriving. According to the report, 2021 would be a watershed moment for Indian businesses going public.
According to a report by Orios Venture Partners, Indian entrepreneurs raised $42 billion in 2021, up from $11.5 billion the previous year. According to the ‘The Indian Tech Unicorn Report 2021,’ India will have 46 unicorns (businesses valued at $1 billion) in 2021, more than tripling the overall number to 90.
Dominant startup sectors
Major startup sectors in India are:
- Healthcare Industry
- Fintech Industry
- Agritech Industry
- HR Tech Industry
- SaaS Industry
It is one of the largest sectors in revenue generation as well as employment generation. When it comes to industrial growth. The healthcare industry is increasing at a compound annual growth rate (CAGR) of 16–17 percent. There are still opportunities in this field. By 2025, India’s government intends to expand public health spending to 2.5 percent of the country’s GDP. By 2027, healthcare’s percentage of GDP is predicted to climb to 19.7%. In both urban and rural India, there are several chances to invest in healthcare infrastructure. By 2022, the hospital industry is expected to be worth $372 billion.
Demonetization and the digital revolution accelerate the growth of the fintech sector in India. Companies that provide Wealth Management, Digital Lending, and Digital Payment services make up the fintech industry.
Due to government initiation for digital transformation, with an adoption rate of 87%, India has emerged as a Fintech Industry Leader. By 2023, digital payments are predicted to expand at a CAGR of 20%.
Agritech sector is related to various sectors like Supply chain tech and output market linkages, financial Services, precision agriculture and farm management, Quality management and traceability and market linkages -farm inputs. Currently, there are 500 agritech startups in India.
India’s agriculture sector (including linked business sectors) employs almost half of the country’s population and accounts for nearly 15% of the country’s GDP.
However, there are a number of issues across the conventional agriculture value chain. These issues can be overcome by using technology in agriculture (agritech), which will result in growth in this sector during the next decade.
HR Tech Industry
The growth of any company depends on the productivity of its employees. In order to sustain the business, the company has to hire the right people for development. And that is the reason for increasing the HR tech industry in India.
SaaS (Software as a service) Industry
In India, there is a continuous growth of many MSMEs (micro, small and medium enterprises) and they are adopting software services. According to analysts, the SaaS business in India is predicted to develop at a rate of 36 percent per year. Technological developments allow for the manufacture of products at a cheaper cost and with greater flexibility, which is the perfect recipe for long-term success.
Most challenging Startup sectors
The most challenging sectors are as follows:
Retail Tech industry
Pharma & Healthcare Industry
This article is an overview of the dominant startup culture in India. The dominant sectors also have the great opportunities and growth in the future as well. Government of India also promotes the startup by providing subsidiaries and through various developmental schemes.
– Varada Ukidave