MITRA’SIAS

www.mitrasias.com
#Essay #GS1 #GS2 #GS3 #GS4
MVAM 0.1 : DebateMITRA

Covering Topics on which students should have a strong opinion with logical arguments and 2 to 3 data points for Mains and Interview

#GS3 04. Indian startups are replicating Western products without much innovation

What is your Opinion : Yes or No?

Why is it so? = Pick Your Argument Pointers

Yes
90% of Indian startups fail within the first five years and
the most common reason for failure is lack of innovation
— 77% of venture capitalists surveyed in an IBM survey
believe that Indian startups lack new technologies or
unique business models. Major reason is due to
the replication of Western business models, and not lack
of subsequent funding from the investors. The highest
number of failures were in logistics, e-commerce and
food technology.
Western Startups are innovation centric while Indian
startups have not emulated the technological
innovations as we see in west.
AI and ML technologies have been adopted in retail and
banking as well, but India is a follower market -- what
we see in the U.S. today will start appearing here
tomorrow.
Unlike Israel, India is not investing in R&D that helps in
establishing links between local companies,
multinationals and academic institutions. Over 70% of
the patents filed in the country are by MNCs; Indian
companies and academia share only the remaining 30%.
Most Indian startups are prone to emulate successful
global ideas, by and large fine-tuning an existing model
to serve local needs. There’s Ola for Uber, Gaana for
Spotify, OYO Rooms for Airbnb and Flipkart for Amazon.
No
Indian startups often tackle unique challenges that
are prevalent in the country. For example, fintech
startups like Paytm and PhonePe have revolutionised
digital payments to address India's diverse payment
landscape. Similarly, food delivery platforms like
Zomato and Swiggy have navigated complex logistics
and varying culinary preferences.
Focus on sustainability and scalability sets Indian
startups apart from their US counterparts. Ability to do
more with less is unique to us. Frugality is deeply
ingrained in the Indian business mindset, leading to
innovative cost-cutting measures and efficient
operations.
Ideas have always travelled around the world and
anything which can be leveraged in the local market
as a nature of business should not be stopped.
In certain sectors, Indian startups have leapfrogged
traditional stages of development by directly adopting
advanced technologies. For instance, many rural areas
lacked access to traditional banking infrastructure,
leading to the rapid growth of mobile wallet solutions.
While US startups have traditionally enjoyed a robust
venture capital ecosystem, Indian startups have been
navigating an evolving investment landscape. The
emergence of angel investors, venture capitalists, and
government initiatives like 'Startup India' has propelled
the growth of homegrown businesses.
No one can copy; one needs to look at market conditions
and innovate.OYO wanted to be Airbnb but has focussed
on aggregating hotels rather than on homestays.
Spandan and Recycle - online marketplace scrap trading
are examples of unique Indian startups.

Some Additional Data Points You should know for opinion building :
Other reasons cited for failure of startups include lack of skilled workforce and funding, inadequate formal
mentoring and poor business ethics. Country’s poor performance in developing human capital is mainly because of
its failure in investing on education.

Refer our monthly booklets to add further muscle to your arguments & freeze an introduction & conclusion :
https://mitrasias.com/answer-mitras-monthly-booklet/

Discuss within your study circle and at our blog : Write Answers and Peer Review them :
https://mitrasias.com/debate-mitra/

Balanced Conclusion / Way Forward :

While it's true that some similarities exist, it's important to dig deeper to understand the nuanced differences and
unique approaches that Indian startups bring to the table.

Join ContemporaryMITRA for Simplified Comprehensive Current Affairs Preparation from Prelims till Interview
1/2
Delhi | Jaipur Call 01145505509, 8826469839
Call 8826469839 www.mitrasias.com
It's undeniable that many Indian startups draw inspiration from successful ventures in the US. This can be
attributed to various factors such as globalisation, exposure to international trends, and the pursuit of proven
business models. However, Indian startups rarely adopt a carbon copy approach. Instead, they adapt and localize
ideas to cater to the specific needs and dynamics of the Indian market.

While it's easy to label Indian startups as mere replicas of their US counterparts, the reality is far more
complex. Indian startups are not just copycats; they are adaptors, innovators, and localisers. They take
inspiration from global trends but infuse their own creativity, cultural understanding, and problem-solving skills.
The success of Indian startups lies in their ability to identify unique challenges and craft tailored solutions,
making them distinct players in the global entrepreneurial landscape.

Good artists copy, great artists steal, said Pablo Picasso

2/2
Join ContemporaryMITRA for Simplified Comprehensive Current Affairs Preparation from Prelims till Interview
Delhi | Jaipur Call 01145505509, 8826469839