We have 80,000 plus startups, 106 unicorns so we are going to use this to see how the startup movement can be accelerated", says Amitabh Kant, G20 Sherpa
I. Introduction
The upcoming 18th G20 Heads of State and Government Summit in New Delhi marks the pinnacle of a year's worth of G20 meetings and processes involving top officials, ministers, and civil society. The New Delhi Summit will culminate in September 2023 with the adoption of a G20 Leaders' Declaration, which will affirm the commitment of the leaders to the priorities that were discussed and agreed upon during the various ministerial and working group meetings. The upcoming meeting aims to establish a worldwide narrative that promotes the growth of startups and encourages collaboration between startups, corporations, investors, innovation agencies, and other significant players in the ecosystem.
India's Startup Ecosystem
India's startup ecosystem has witnessed significant growth in recent years, becoming the third-largest startup ecosystem in the world with over 80,000 startups. The ecosystem has also created over 4.2 million jobs in the country, contributing significantly to India's economy.
The success of India's startup ecosystem can be attributed to several factors, including the government's support for startups through initiatives such as Startup India and Make in India. Additionally, the availability of skilled talent, access to capital, and a large domestic market have created a favourable environment for startups to grow and scale.
Some of the prominent Indian startups include Flipkart, Ola, Paytm, Zomato, and Byju's, which have achieved significant success both domestically and internationally. India's startup ecosystem has also witnessed an increase in the number of unicorns, currently standing at a whopping 106.
India's startup ecosystem has demonstrated considerable potential for growth and success, and the country's appointment as the G20 summit president presents a unique opportunity for Indian startups to further establish their presence on the global stage.
Promising Advantages for Startups in India
India's recent appointment as President of the G20 Summit has opened up a plethora of opportunities for the country's burgeoning startup ecosystem. The enhanced global visibility presents a promising avenue for Indian startups to exhibit their ingenuity and aptitude in an international market. The increased visibility can potentially facilitate the acquisition of fresh investments and collaborations with enterprises hailing from other G20 nations.
The G20 summit presents a valuable opportunity for Indian startups to gain insights from their international counterparts and learn from their experiences. Sharing best practises and knowledge can be a game-changer for Indian startups seeking to identify new growth opportunities and enhance their operations.
India's upcoming presidency of the G20 summit is expected to enhance the nation's standing as a centre for innovation and entrepreneurship. India's burgeoning startup ecosystem is poised to receive a significant boost in attention and investment as it garners international recognition. This heightened exposure is expected to foster greater collaboration among Indian startups and attract more funding to the country's thriving entrepreneurial landscape.
As India takes on the G20 presidency, its startups stand to gain significant benefits. However, they must also be mindful of the potential challenges that lie ahead. These include stiff competition from startups in other G20 nations as well as the need to navigate unfamiliar markets and regulations. Indian startups can position themselves for long-term success on the global stage by adopting a strategic approach to collaboration and partnership and leveraging the opportunities presented by the G20 summit.
India's Proposed Agenda for the Upcoming Issue Note: Key Points to Consider
India is presently engaged in two major initiatives. A pair of fresh initiatives have been launched to tackle pressing concerns within the corporate sphere. One working group is dedicated to disaster risk and resilience, while the other focuses on engagement related to Startup 20. India is the birthplace of these groundbreaking initiatives. The team is currently striving to reach a consensus on these issues. India's burgeoning startup ecosystem has made significant strides in recent years, with a growing number of innovative companies emerging across various industries. At the outset of the Startup India campaign, the number of startups in operation was a meagre 200.
India's G20 delegation has outlined six key agenda priorities for the upcoming G20 dialogue in 2023, namely: 1. Green Development, Climate Finance, and LIFE; 2. Accelerated, inclusive, and resilient growth; 3. Accelerating progress on the SDGs 4. Technological Transformation: Digital Public Infrastructure 5. Multilateral Institutions for the 21st Century, and lastly, 6. Women-Led Development
The Strategy to make a mark
India's presidency of the G20 summit presents a significant opportunity for Indian startups to strengthen collaboration with other G20 countries, explore new markets, and attract new investment. To fully capitalise on this opportunity, Indian startups need to develop strategic plans that focus on leveraging the potential benefits of the G20 presidency. Here are some key strategies for Indian startups to consider:
- Focus on strengthening collaboration and partnerships with other G20 countries: India's startups can use the G20 platform to build partnerships and collaborations with startups from other countries. This could lead to knowledge-sharing opportunities, joint ventures, and partnerships that could help Indian startups enter new markets and scale their businesses.
- Explore new markets and identify growth opportunities. The G20 presidency could help Indian startups explore new markets and identify growth opportunities. With increased international exposure, Indian startups could leverage the G20 platform to understand the needs and preferences of consumers from other countries, which could help them tailor their products and services to meet the needs of new markets.
- Leverage the increased international exposure to attract new investment: With India at the helm of the G20, its startups could attract more investment from other G20 countries and beyond. According to a report by Nasscom, India's startup ecosystem received $10.14 billion in funding across 881 deals in 2022. However, there is potential for even more investment as India continues to develop its startup ecosystem.
India's G20 presidency presents a significant opportunity for Indian startups to strengthen collaboration, explore new markets, and attract new investment. To capitalise on this opportunity, Indian startups need to develop strategic plans that focus on leveraging the potential benefits of the G20 presidency. By doing so, Indian startups could position themselves as global leaders in innovation and entrepreneurship.
The bottom line
Until now, the developed world has been the driving force behind the global agenda, with the rest of us merely reacting to their initiatives. India is emerging as a key player in setting the agenda. As a business, we have the unique opportunity to establish the agenda and lead the way for others to follow suit. India's Remarkable Progress in Digital Transformation
Digital innovations predominantly originate in developed regions of the world. A groundbreaking achievement has been made by the emerging markets with the creation of a one-of-a-kind model. This business model boasts an impressive 7x higher payment volume than that of both the US and Europe and a remarkable 3x higher payment volume than that of China.
India's digital public infrastructure model has the potential to be a global game-changer. The success of this model could pave the way for its implementation in other countries.
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