Economic Survey 2023: Start-ups envisioned as the 'spine of new India'

The Economic Survey 2022-23 that vividly outlines the growing importance of India’s digital ecosystem envisions start-ups as the ‘spine of new India’ as "they encourage the youth to become job creators rather than job seekers." Total number of jobs created by DPIIT (Department for Promotion of Industry and Internal Trade) recognised startups has increased to 269,000 in 2022 from some 43,000 in 2017, the survey says.

Start-ups today have expanded their footprint into almost every sector of the economy ranging from food to logistics by way of building unique tech-powered products and solutions. "The rollout of 5G services can unleash new economic opportunities and help the country leapfrog the traditional barriers to development, spur innovations by start-ups and business enterprises, and advance the 'Digital India' vision. The journey is far from complete, and a lot remains to be accomplished to realise our true potential," the survey says.

Keeping in line with the broadening of the start-up ecosystem, the number of government-recognised start-ups has also increased from 452 in 2016 to 84,012 in 2022. The Survey says that various targeted initiatives of the Government like the Start-up India Initiative, National Initiative for Developing and Harnessing Innovations (NIDHI) and Atal Innovation Mission (AIM), The Fund of Funds for Start-ups (FFS) and Credit Guarantee Scheme for Start-ups (CGSS) have been instrumental in giving shape to the growth of the start-up industry. "India ranks amongst the largest startup ecosystems in the world. An impressive 9 lakh+ direct jobs have been created by the DPIIT-recognised startups (self-reported), with a notable 64% increase in 2022 over the average number of new jobs created in the last three years. About 48% of our startups are from Tier II & III cities, a testimony of our grassroots’ tremendous potential," the survey says.

The Survey, for instance, touched upon the potential of the fintech sector saying that "with the highest FinTech adoption rate of 87% among the public compared to the global average of 64%, India has gained the 3rd place in digital payments only after US and China, signifying that India has an untapped market," the survey further says. UPI, a homegrown tech innovation that catapulted the growth of the fintech ecosystem has seen unprecedented growth. "On average, between FY19-22 (calendar year), growth in UPI-based transactions in value and volume terms have been 121% and 115%, respectively. Recently, in Dec 2022, UPI touched its highest-ever mark with 782 crore transactions worth ₹12.8 lakh crore," the survey points out.