Economic Survey 2022: The Future of Startups in India

According to the Economic Survey 2021-22, India boasts of approximately 61,400 startups certified by the Department for Promotion of Industry and Internal Trade (DPIIT), with at least 14,000 registered during the fiscal year 2022. This survey is like an annual economic report card that assesses the performance of several sectors, recommends future strategies and includes a forecast for GDP growth.

The Future of Startups in India 2022 Edition

The Rising Counts

As per the Economic Survey, there was at least one new startup in about 555 districts of India, demonstrating the dramatic rise in the number of startups over the last six years, a huge bulk based in the IT-based industries.

Over the last six years, India's startup scene has exploded from 733 in 2016-17 to over 14,000 in 2021-22, the number of newly recognized startups has surged rapidly. Last year, India emerged as the third-largest startup ecosystem in the world after the USA and China. 

In 2021, 44 Indian firms earned unicorn status, bringing the total number of unicorn startups in India to 83, with the majority of them in the services sector. The USA tops the list with about 460 unicorns, while China rests at the second spot with about 300 unicorns approx.

Also Read: Initiatives by The Indian Government to Boost Startups In India

Unicorns, Gazelles & Cheetahs 

A unicorn startup is a privately held startup company with a valuation greater than $1 billion. Apart from unicorns, India's count of potential unicorns dubbed as "gazelles" and "cheetahs" has seen a steady rise too.

"Gazelle" is a startup, founded post-2000, that has the potential to achieve unicorn status in two years, whereas a "cheetah" might become a unicorn in four years. The valuation of gazelles is estimated to be between $500 million and $1 billion, while the valuation of cheetahs lies between $200 million and $500 million

Also Read: Co-Founding A Start-Up? Have These Points Covered

The Verdict

The survey also drew attention to the recent spate of IPOs by new-age businesses. Around Rs 89,066 crore was raised through 75 IPO issuance in April-November 2021, significantly more than in any year in the prior decade.

The survey also highlighted India's growing space tech startup scene. According to the report, the number of startups in space tech has climbed from 11 in 2019 to 47 in 2021. Delhi recently overtook Bengaluru as India's startup capital. Between April 2019 and December 2021, over 5,000 recognised startups were added in Delhi, whereas 4,514 were added in Bengaluru. Maharashtra, though, owns the title of most recognised startups with 11,308 startups under its belt. 

Despite the global market crash, Indian entrepreneurs secured investments up to $3.5 billion over 130 deals in January, highest in the last decade, hinting at the ongoing investor interest.

In January, the overall value of revealed deals was six times more than the same month last year, when 75 deals for $600 million were disclosed. According to the report, Indian companies closed 65 deals worth $1 billion in January 2020.

So, it is safe to say that the startup culture is thriving and won’t be going away any time soon. 


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