The start-ups in the Indian economy is leading to the growth of the economy.

Rivigo hitting headlines on becoming a unicorn or Ritesh Agrawal led OYO getting $2

billion funds led by the founder himself. The startup ecosystem in India has seen almost

approximately $9 billion in funding this financial year alone. The question of why investors

are betting big on India is something that lies unanswered.

"On the contrary, 90% of Indian Startups fail within five years of inception," says Rishab

Lawania, Head of a leading market intelligence firm. Since the year 2015, an approximate

figure of more than 2000 startups have failed shut doors. The majority of these startups have

been a copy of leading western startups, and the lack of interest from investors due to the

same had made Indian startups fail miserably. But the 10 % of the startups that strive through

this has gone along to create numerous business opportunities, ancillary companies and jobs

which directly or indirectly has been creating more than 2.5 million + employment

opportunities in India.

India gearing up actively to hit a $ 5 trillion economy by 2025 with several policy changes

that are expected to take place through this period in aide to boost the economy, is going to

be a challenge for both the government and the nation as well. On this way the strongest

pillars to be identified as significant revenue boosters is seen as IT services and Tech-based

startups which has led to annual combined revenue of more than $180 billion and exports of

$137 billion and employing more than 4.5 million through the organized IT sector out of

which more than 80% of the companies tend to be startups. Out of these, India's standout
innovation vertical stands out to be Consumer technology and platforms, redefining on how

we even order or how we behave stimulus is things they have changed.

Witnessing many articles that have been addressing the fact of startups that have been failing

and leading to loss of economy, would like to contradict this particular statement and focus

on how startups have been aiding to the growth of the nation.

Many of the various startups that we have seen has been into what PWC calls the Leapfrog

vectors of growth — ranging from Health care, Education, Agriculture and Financial

Services.

The startups in these fields are aiding to growth and development through various ways

leading to progress in opportunities and access to better technology and development even to

the consumer present in rural India. The common myth of startups only being present in the

field of Tech and IT has to be erased and comes to the new era of companies that focuses on

other crucial sectors as listed above with fresh and excellent talent pool for the Indian market

growing and influencing on various issues and concentrate on the growth of the economy.

Added to this is opening up of Foreign Direct Investments across sectors that need funding

for startups to gain funds out of it slightly depending on domestic players who back out from

funding due to various reasons. Startups which require financing in sectors like

Manufacturing struggle due to strict FDI norms that don't allow investments to happen at a

go.

Studies by a leading private consultancy state that by the year 2034 startups sizes would grow

10x and the success rate of these startups would be higher to what is today.
Today the amount of startups that are aiding to employment is ten times larger than what it

was five years back. The growing employment cycle and migration of employees from rural

to urban or staying in the rural background yet working in for a startup has become possible

due to reach and mobility of data and internet services in every nuke and corner of the nation.

Many startups have been continually shifting their focus from Tier A cities to Rural India as

the potential is seen to be higher and much more productive in nature, rather than burning

cash these startups have gone ahead and created an ecosystem in rural India empowering for

men and women's livelihood and compensating for lost revenue and income many have been

facing due to draughts and monsoon failures in extensive parts of the country.

Not only empowering but due to enhanced technology developments and new growth fuel

and innovation development support given by the government of India under the Startup

India and Make In India programme startups have been ensured ease of doing business and

much better tax norms which allow them to work in peace, added to this governments effort

in providing sustenance allowance for startups to fuel their dream is helping to build bridge

across sectors. Added to this the as development and innovation takes place, so does growth;

as startups and young entrepreneurs come up with various solutions to problems the

fundamental core of growth development takes place here.

Taking in the newest unicorn we had referred to previously, Rivigo has been redefining on

how companies and freight operators ship freight. This aggregator has redefined on how

drivers work and making driving a stress free eight-hour duty daily from once where it was

said to be one of the hardest profession, and the company has shipped Gross merchandise

value of products more than $10 billion. Rivigo is just one which is revolutionizing the
economy there are much bigger giants and this particular faith that the investors have been

keeping on these companies attract funding and fueling their expansion to growth.

With phenomenal development in the startups and their funding rounds and social problems

that are being answered increasing. It is high time we start seeing the positive side of these

companies and how they are fueling the growth of the economy directly or indirectly through

various means of business opportunities that knock door frequently. It is time for all of us to

start looking for problems that have to be answered or what you or I feel like an issue that

needs to be answered.

But will these startups find a way in or out of the funding spree and start coming with

sustainable revenue model to aid in and fuel growth rather than being dependent on investors

and grow organically in linear scale and steadily grow to reach heights that has never been

touched by economies or collapse or exit market collapsion economy and create pool of job

looser,is something that remains unanswered amidst all growth stories.

Gone are the times where Multi-National Companies or Indian Business house dominating

the markets, it is time for smaller and better-working companies backed by international

giants take charge of the Indian economy and decentralize the whole power that lies in the

hands of very select business houses in India. Will these global giants fuel their greed or the

economy?