According to the recent study conducted by The Associated Chambers of Commerce & Industry of India (Assocham), in association with Thought Arbitrage Research Institute, India is the third largest tech startup hub in the world. Dalip Sharma, the director of Assocham stated, “India is home to the third largest number of technology-driven startups in the world with the US and the UK occupying the top two positions.”
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is one of the apex trade associations of India. The organization represents the interests of trade and commerce in India and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives. The goal of this organization is to promote both domestic and international trade and reduce trade barriers while fostering a conducive environment for the growth of trade and industry of India.
The study conducted by Assocham, in association with Thought Arbitrage Research Institute, revealed that Bangalore, a metro city in India, is host to the largest share of technology startups in the country, followed by Delhi-NCR and Mumbai, while Hyderabad and Chennai are also quite popular among budding tech entrepreneurs.
India has moved up to the third position in technology driven start-ups numbering 4,200 up to 2015, with the U.S. occupying the top position with more than 47,000 and the U.K. with over 4,500.
Bangalore provides one of the best ecosystems for the development of startups in India. This city is home to numerous engineering colleges, medical institutions, and other education centers. Bangalore creates ample job opportunity for fresher pass outs and experienced IT professionals annually. According to Venture Intelligence’s data, Bangalore receives maximum venture funding within the country. Now, Bangalore emerged as the leading startup center of India.
In all this, IT hub Bangalore is a host to 26% of domestic tech startups, followed by Delhi-NCR (23% and Mumbai 17%). The “catching up” category will have Hyderabad (8%), Chennai and Pune (6% each).
Sunil Kanoria who is the president of Assocham said, “The disruptive innovation in technology and process is creating newer Indian startups and foreign investors, including some of the well-known venture capital funds, are showing immense interest in these startups. The awareness that a startup is a vehicle of rapid growth through technological disruption and innovation has to spread across the economy. Otherwise, if any small traditional business is treated as a startup, then the ecosystem will never develop properly”.
Appreciating the proactive policies of the government, the founder of Info Edge Sanjeev Bikhchandani said that the kind of supportive ecosystem available to the startups currently should stir up the entrepreneurial spirit of the region.
The study done by Assocham & Thought Arbitrage Research Institute recommended that synergizing “Startup India” with “Make in India” and “Digital India” initiatives has the potential to expand the domestic ecosystem for new entrepreneurs. It also suggested tax exemption for research and experimentation to encourage fresh ideas without the fear of failure.