Thiruvananthapuram: Chief Economic Advisor (CEA) to the Union government, V Anantha Nageswaran, has articulated the transformative impact of startups in propelling India towards becoming the world’s third-largest economy. Speaking at the Huddle Global 2023, organized by the Kerala Startup Mission (KSUM), Nageswaran highlighted the crucial role of tier-2 and 3 cities, including Kerala’s capital, in fostering a conducive environment for startup growth.
CEA’s Vision: “7-in-7” Economy
During his Leadership Talk at the event’s concluding day, Nageswaran revealed the aspirational goal of achieving a $7 trillion economy by 2030, emphasizing that India’s current growth trajectory makes this target feasible. He underscored the instrumental role of startup entrepreneurs in this journey, foreseeing them as contributors to efficiency, revenue, and overall economic progress.
“In fact, I will say 7-in-7 is the buzz slogan, that is 7 trillion USD economy in seven years,”stated Nageswaran, emphasizing the potential impact of startups in shaping India’s economic landscape.
Nageswaran acknowledged the exceptional transformation witnessed in the startup ecosystem over the last decade. India has emerged as the third-largest global ecosystem, boasting over 1.12 lakh recognized startups across 763 districts. Notably, more than 110 unicorns, with a cumulative valuation of around USD 350 billion, have contributed to this remarkable growth.
Highlighting the diversity of innovation, Nageswaran noted that startups are actively addressing challenges in 56 industrial sectors. Sectors such as IT services, health and life sciences, education, agriculture, and food and beverages have seen significant contributions. Notably, India ranks second globally in innovation quality.
The CEA emphasized the paradigm shift where 49% of startups hail from tier-2 and 3 cities. This shift, coupled with improved infrastructure, proactive government policies, and a technically skilled talent pool, has turned these locations into game-changers for startups, allowing them to operate with lower costs compared to tier-1 cities.
Recognizing Kerala’s startup journey, Nageswaran credited the Kerala Startup Mission (KSUM) as a catalyst since its establishment in 2006. With over 4,000 registered tech startups, 63 incubators, and 10 lakh square feet of incubation space, KSUM has not only fulfilled its mission of promoting technology-based entrepreneurship but has also attained recognition as one of the world’s top business incubators.
The Huddle Global 2023, India’s largest beachside startup conclave, showcased cutting-edge products across emerging sectors, including robotics, artificial intelligence, machine learning, augmented reality, virtual reality, life sciences, space tech, blockchain, IoT, e-governance, fintech, healthtech, agritech, edutech, and SaaS.
