Before we jump into the boring financial jargons, here is how the Union budget 2021 can be broken down as if it were a household matter.
Kahani ghar-ghar ki & National budget 2021
The father in the family had to break all his fixed deposits and savings of years to cater the needs of his five children who were jobless during the covid-19 lockdown (just like RBI had to reduce interest rates and spread money in the market!).
The deficit was increasing for the father as there was more expenditure and less earnings (the increasing fiscal deficit of India).
In order to fix this deficit, he introduces a growth oriented annual budget for his family. He asks a couple of his children to vacate their rooms and accommodate them in the living room.
The vacated rooms are given to business owners as rent from which the father aims to generate rent as well as a profit margin from the business (monetizing government assets).
Also a few rooms of his house which were not in regular use are sold to investors and the money raised is used to develop the house even more (disinvestment by way of IPO,OFS).
The father uses all the money raised to buy a new plot and construct a shopping complex which will attract businessmen from other towns to start their business over here (FDI-Foreign direct investment in Insurance sector).
The couple of children who were unemployed earlier will be employed at this complex(decreasing unemployment by spending on infra projects). In case of inadequate funds for this infra project, the father will be financed by an agency too (the DFI- Development financing institution).
Now, with the huge inflow of money in the family, the buying capacity of the family can increase and the nearby shop owners can sell goods at inflated costs to the members of the family (inflation).
And in this case, the budget of the father can go for a toss. So he needs to ensure there are plenty of shops in the town (increase supply to match the demand) and keep a check on inflation.
The father decides to spend heavily on the family members’ health to avoid any such situation in the future (healthcare stimulus of Rs. 35000 crores).
Also read: The Story of Indian Banking Failure
A few of his children had taken loans to start a business but failed to repay as the plan failed. Hence he decided to pool all these bad debts and hand them over to specialists who can manage them and reduce the losses (formation of a bad bank for the NPAs). This removes the debt from the picture and growth oriented planning can be done smoothly.
The children had to buy cooking oil from the kitchen out of which some money went to the mother as she was managing it and the rest to the father. But in this budget, the father increased the rate of oil for the children; but at the same time reduced the duty they had to pay to the mother.
This kept the price of oil the same for the children and the father earned more which he will be using in growth of the family (the agri-infra cess of Rs.2.5 and Rs.4 on petrol and diesel and reduced excise duty for the state)
He kept the income tax rates unchanged to make sure that the father remains in the good books of the children. The reduced income of the children during the pandemic was another reason for this move (the unchanged income tax rates).
Simplified? Sounds like Kahani ghar-ghar ki? Well, that’s how we at TheBossMonk aim to explain this year’s budget; simplifying technicalities so that you remain informed! It is thodha technical but very informative article on budget that is going to be implemented this year.
But promise us that you’ll not leave reading mid-way, ha! The info might be overwhelming as A LOT new things are ideated in this budget. But as a millennial you ought to be aware of what’s going on in your country.
Okay, with the disclaimer out there, let’s begin, shall we?
First reactions to the Budget 2021
BTW, is the Budget 2021 the most visionary or what? Few economists are pointing out that it is India’s boldest & historic budget ever. That is if what is said in the budget is practised.
The Indian stock market has recorded all-time high levels with a jump of nearly 11% after the Union Budget 2021 which tells us how the masses see this budget and what sentiments it is driving.
What about the Rs. 12 trillion, which will be required in the next fiscal to execute this budget? Moreover, Rs. 12.8 trillion will be needed for the current fiscal as well.
Will this budget be the most inflationary budget of all time?
Or will it be a defining moment in India’s growth story?
Highlights of the Budget 2021
Avenues for growth: Disinvestment through privatization
One way of making money is to work hard. But, another way of making money is to sell off the things that you already own.
The government is planning to sell off the stakes in most of its public undertaking firms and raise capital out of this disinvestment, which can be channelized towards growth prospects of the nation.
This is one way to generate liquidity in the markets and keep an uninterrupted flow of cash in the markets, which is the first requirement for a developing economy.
This is how the international markets have recovered after the drastic Covid-19 impact.
The government is planning to sell stakes in a few public sector banks and Air India. A few oil companies are already undergoing the process of disinvestment, which has already raised the eyebrows of the employees of various PSUs of India.
The biggest event of 2021 i.e. the LIC IPO is all set to roll out for investors, which is going to be the biggest IPO in the history of Indian stock markets. This IPO will raise huge sums of cash for the government to play around and satisfy the monetary needs to complement the budget decisions.
But the problem here is that the government is planning to sell stakes in the profitable PSUs which are doing really well.
What happens when they turn to the not-so-profitable businesses like Air India after these blue chips of the Indian economy are exhausted?
This won’t be an easy ride for the government, as there are many such businesses!
Using government assets as a source of income
Many government assets which are expensive to maintain are being considered for monetization by handing them over to some private players.
NHAI roads are being handed over to private players which is proving to be cost effective for the government, and it is a good source of income for the government.
These private players pay huge sums of money to the government initially before the contract begins, which acts like a stimulus to the financial policy makers.
Also, the government intends to save a lot of money by reducing public sector jobs as these jobs cost them more, as per the trailing pay scales going around since years. Privatization in jobs is another cost effective way to monetize the assets of the government, as saving is also earning.
Power companies (Power grid corporation of India and the other state run utilities), railway stations, airports, oil companies(HPCL, IOCL, BPCL), sports stadiums, highways, etc are all in the government’s radar to generate an inflow of cash by either monetizing them or by disinvestment.
Pros and cons of disinvestment and monetizing
The fiscal deficit (The difference between total revenue and total expenditure of the government is termed as fiscal deficit) which is 9.5% of the GDP this financial year is a cause of concern for the government, which was expected to be 3-4% of the GDP.
Hence the deficit is on the rise. The Covid-19 pandemic has had a pressure on the fiscal deficit, as spending more was the only option left for the government to allow the Indian economy to recover from the pandemic ripple effect.
Confused? Wait, lemme simplify it for you:
This can be better understood by relating it to a household problem wherein a father has just spent for his child’s marriage and is facing a deficit of funds as his earnings have not increased at par with the expenditure.
Here, the father has to sell his old house to raise funds to counter the deficit and use these funds to create an additional source of income.
Employment growth kab ayega?
Salaried employees will see a salary cut after their respective companies are being handed over to the private players. With fewer government jobs come lesser reservations for critical government posts which can make the rich richer and the poor even poorer.
Along with the job cuts, which is a financial aspect, social rifts between communities leading to political tensions can arise too.
A DFI- Development Financing Institution is being set up which will finance the private companies spending on infrastructure.
A fund of Rs. 20,000 Cr has been allotted to the DFI which will be given as loans to private companies to invest in infra projects. The government sees growing infrastructure as a medium to increase long term value, develop assets, generate jobs which will help the GDP in the long run as it has in most of the developed nations like the USA.
This move is targeted to incentivize the private players and encourage them to spend more on infra projects which will be the next backbone of the Indian economy for several decades. With improving infrastructure will come better employment opportunities to counter unemployment.
Do I have to take a loan to buy petrol now?
A rumour going around, fueled by political opponents of BJP, states that the petrol and diesel prices have increased by Rs 2.5 and Rs 4 respectively. This rate hike is not going to cost an extra penny to the public as the excise duty for these products has been reduced to give an equivalent null effect (Keep reading to know why this is done?).
Not for the budget, but the prices of petrol and diesel are already high owing to the already high customs duty, increasing inflation, hoarding by the oil producing nations and many other reasons.
If this continues, looking out for cheap loans to satisfy our fuel needs won’t be a bad idea. Indeed, it will be!
2021 is the right time to exchange your vehicles
The government has come up with a vehicle scrapping policy which will help the vehicle owners to sell their 15 year old vehicles and buy new ones by rewarding tax concessions, loans and other benefits. This will boost the automobile sector along with its subsidiaries like the tyre companies.
Also, Rs 1000 crores will be invested in the Solar energy corporation of India to foster the use of solar energy over conventional sources. Additionally Rs.1500 crores will be invested for the benefit of the renewable energy companies.
Decreasing reliability on crude oil, which has been the biggest hurdle in India’s growth economically, is what the government is striving for.
So the message is quite clear- Think twice before you buy a petrol-diesel run SUV for yourself in the coming years. Unless, you decide to settle in the Gulf!
Agri-Infra tax- A smart way of borrowing or stealing?
The begging and borrowing continues as the finance ministry declared an additional tax called the agri-infra tax. Including hikes for products like alcoholic beverages.
But this move will not cost an extra penny to the customers as the government has reduced the excise duty on these products by the same amount that was increased. So the rate hike gets neutralized and the cost of diesel and petrol remains the same for all of us.
But then why this move? Surely it is a cunning way of making additional money.
Let me simplify: It so happens that the taxes raised under the heads of excise and customs partly go to the state government. So, in order to channelize these funds towards the centre, the government has reduced the excise duty and added an additional tax on these specified products.
That is really a cunning way of ticking one more source of income. So with privatization, centralization is also under the cards of the central government, which can be detrimental in the long run leading to geo-political tensions in India.
Planning to set up a bank for non performing assets
Just as in our schooling days there was a batch of students chosen to attend extra classes after schooling hours just because they were weak academically. Similarly a bad bank has been set up to accommodate all the bad boys in the banking industry.
The bad boys here are the non performing assets of the banks which have been the troublemakers in the Indian economy since more than a decade now. (The Mallyas, if you still haven’t recognized who these bad boys are!)
All the loans which have been unpaid and seem to remain unpaid if no targeted action is taken, will be shifted to this bad bank. So all the other banks will be free of the dirt and will be guided to function properly here after.
The problems of unpaid loans will be handed over to experts in loan recovery, which will be private agencies. This indeed is a good move to keep our energies targeted and channelize the resources accordingly.
Insurance sector FDI increased upto 74%
The FDI limit in the insurance sector has been increased from 49% earlier, to 74% now. This is another way of borrowing to keep it simple. This will help the insurance sector tremendously and the insurance stocks are already showing bullish signals post this decision.
Also it will create a competition within the insurance companies to deliver good products and improved service to the Indian customers.
But then again, is FDI a good way of borrowing?
Healthcare: The most pampered child after Covid
Healthcare, unlike before, has been allocated 2.23 lakh crores for enhancing the primary, secondary and tertiary healthcare systems. Also, a separate fund of 35000 crores has been assigned to counter the Covid-19 pandemic. This is a welcome move hailed by the experts.
No tax hikes: Govt’s accommodative stance
There were speculations that the budget can declare a Covid-19 tax, or an additional tax for the rich. But that was not to be. After the cut down in the corporate taxes in September 2020 the mindset of the government was clear that they will maintain an “accommodative” stance as far as the direct taxes are concerned.
The couple of announcements made are:
- Senior citizens above 75 will be exempt from filing income tax returns if their income is only from pension or the interest from it
- If an individual has a contribution of more than rs. 2.5 lakhs per annum towards the Employee provident fund, then the interest out of this contribution can be taxed.
What will be expensive & what will be cheaper?
The base customs duty on gold and silver has been slashed to 7.5% from the previous 12.5%. This will lower the prices of the precious metals in the domestic markets.
At the same time, the customs duty on automobiles, cotton and raw silk have been increased to 15%,10% and 15% respectively which will make these goods expensive for customers.
On the whole, if more things become expensive, things will start to become difficult for the implementation of the budget. Inflation is the biggest enemy of a developing nation.
A clever budget plan just before a few state elections?
With states like West Bengal, Tamil Nadu, Kerala and Assam on the brink of elections, the decision to allot multi-crore central infrastructure allocations to these states is seen as a move to boost electoral gains by the BJP.
Well, the people of these states should be happy rather than judgy, as the pre-election period is their turn to show bananas to the politicians; unlike the post election period.
Budget 2021: Was it the boldest & historic Indian budget ever?
This budget is historic as well as a bold one because it talks about selling government stakes in public sector banks after 50 years of nationalizing the banking sector of India in 1969. This move directs the Indian economy towards a new growth story and India might soon enter from the developing nation category to a “beginning of a developed nation” category.
Also, with the prevailing farmer protest problems in India, this budget will definitely be tagged as a bold one which shows visionary prospects.
The budget looks promising which will define the growth story of India in the coming decades. But then there still are a couple of problems to it.
They are – Implementation and Execution.
It will be interesting to see how the government pulls it off amidst so many challenges!
Private Company vs Public Company
The difference is more than literal
Do you know why you cannot buy shares of a private company?
So, can you only buy shares of a public company like ONGC, IRCTC, Indian Oil, etc.?
Then why are the shares of private companies like Infosys and Wipro listed on the stock exchange? Are these private companies to begin with?
Do you know a private company cannot have more than 200 members?
OMG! Somebody please answer all these questions.
Yes, the difference is more than literal.
Let us have a cut and dried distinction between a private and a public company.
Definition of Company
Let us take the bull by its horns and get the definitions out from the textbooks.
Companies Act 2013
A company is a legal entity that is formed by different individuals to generate profits through their commercial activities.
Majorly, a company can be classified into two strands- public company and private company.
Before knowing the difference between a public company and a private company, it is of utmost importance to check on the definitions of a public company and a private company as per the Companies Act 2013.
According to the Companies Act, 2013, a “public company” is a company which—
(a) is not a private company
(b) has a minimum paid-up share capital of five lakh rupees
According to Section 2(68) of the Companies Act, 2013, private companies are those companies whose articles of association restrict the transferability of shares and prevent the public at large from subscribing to them.
According to the Companies Act 2013, a public company has to mandate all legal proceedings which are not mentioned in the definition under Section 2(68) of the Companies Act, 2013, which pertain to a private company.
Difference Between a Public And Private Company
Let’s look at all the major pointers which differentiate a public Company and a private company.
Minimum Number of Members
In a public company, a minimum of 7 members is required to form a company; whereas a private company requires at least 2 members to form a company.
Maximum Number of Members
In a private company, a maximum of 200 members can be present to form a company; whereas in a public company there is no such restriction on the maximum number of members to form a public company.
Invitation To Public
A public company can freely invite the public for subscription, which implies it can issue a prospectus. On the other hand, a public company is prohibited from inviting the public for its share capital, which means a private company cannot issue a prospectus.
Number Of Directors
In a private company, a minimum of 2 directors is required; whereas in a public company, a minimum of 3 directors is required.
Transferability Of Shares
There is no restriction on transferability of shares in a public company; whereas in a private company there are complete restrictions on transferability of shares, through its article of association.
A public company must disclose the annual financial report; whereas for a private company, there is no such obligation to disclose their annual report to the public.
Index Of Members
In a public company, it is mandatory to maintain an index of all members in the company, whereas in a private company, it is not needed to maintain the index of its members.
The minimum paid-up capital for a private company is Rs. 1 lakhs; whereas the minimum paid-up capital for a public company is greater than that of a private company. It is Rs. 5 lakhs for a public company.
In case of a public company, it is defined that total managerial remuneration cannot exceed 11% of net profits and in the case of inadequate profit, the maximum amount to be paid is Rs. 87,500. Whereas in a private company there is no such restriction on the maximum cap for directors’ remuneration.
Quorum For Meetings
In the case of a public company, it is mandatory to have a personal presence of five members in a meeting to constitute quorum, whereas in a private company, it requires a minimum of two members to maintain a quorum for meetings.
Below is an array with a list of pointers that differentiates a public company and a private company.
|S.NO||BASIS||PUBLIC COMPANY||PRIVATE COMPANY|
|1||MINIMUM MEMBERS||AT LEAST 7 MEMBERS||AT LEAST 2MEMBERS|
|2||MAXIMUM MEMBERS||NO MAXIMUM LIMIT||CAN’T EXCEED 200 MEMBERS|
|3||INVITATION TO PUBLIC FOR SHARE CAPITAL||POSSIBLE WITH THE HELP OF PROSPECTUS||CAN’T INVITE PUBLIC FOR ITS SHARE|
|4||NUMBER OF DIRECTORS||MINIMUM OF 3 DIRECTORS||MINIMUM OF 2 DIRECTORS|
|5||TRANSFERABILITY OF SHARES||FREELY TRANSFERABLE||RESTRICTIONS ON TRANSFERABILITY|
|6||ANNUAL REPORT||COMPULSORY TO SUBMIT ANNUAL REPORT TO ROC||NOT A MANDATE TO SUBMIT ANNUAL REPORT TO ROC|
|7||INDEX OF MEMBERS||MAINTAINING INDEX OF MEMBERS IS MANDATE||NO NEED TO MAINTAIN INDEX OF MEMBERS|
|9||DIRECTORS/MANAGERIAL REMUNERATION||CANNOT EXCEED 11% OF NET PROFIT||NO LIMIT / NO RESTRICTIONS|
|10||QUORUM FOR MEETINGS||5||2|
“The best investment is in the tools of one’s own trade.”- Benjamin Franklin
It is always better to be well versed with the tools of one’s own trade and the management of the inflows and outflows.
An avid tradesman associates their trade to generate profits and simplify the trade complexities by forming a company. These differences stated above lay down the basics of companies and form a guided path for a better approach to start with a company.
Here Is Why Entrepreneurs Should Go Out and Start Networking
Don’t hide behind. Face your circles. It’s high time you start networking.
We have often watched Hindi films where protagonists aspire to be a rich men as a kid. And hence they start thinking of different business ideas to be successful.
Well, this happens in reality as well. Who doesn’t dream of starting their own business one day, right?
However, business is not as easy as eating a piece of cake. And no, you don’t need to have a Ph.D. or an MBA degree to start a business.
You just need to have clarity of thoughts; about the business idea, sales and marketing, and most importantly, NETWORKING.
Today, everyone needs everything. The circle of needs and demands has become wider. Everything in entrepreneurship is becoming more interconnected. Just like the Past, Present, and Future in the web series “Dark”.
Networking is the one and only way to get to know what’s around you. From having conversations with your parents to your fruit vendors or even your house helps, you never know what brings you to the peak of your business.
We will share our two cents to convince you enough to go out and start networking if you are a budding entrepreneur. Pardon us if these two cents become 4 or more, but you will definitely not regret reading this till the end.
Entrepreneurship And Networking
The first thing that any budding entrepreneur does, while starting their own business, is to spread the word about it.
The first set of people that they talk to are their family, friends, and even banks (for financial purposes). Although these efforts may or may not materialize into something fruitful, you learn a thing or two about the ABCs of networking.
Networking is one way to get clarity of thoughts about your business. It’s like building a blueprint of your business in mind. You not only know the industry better but also get to know the loopholes and healthy shortcuts that will save time and increase efficiency.
In the ABCs of business, “A” stands for “recognizing the needs and expectations of people around you.”
Networking is the first step to recognize the gap between demand and supply. It’s similar to providing electricity to those areas with no light, and the idea and motivation behind it.
So now that you are still reading, let’s go further and discuss the importance of networking in entrepreneurship:
Builds Trust And Respect
You may or may not earn money every day from your business. But once you earn trust and respect in the market, there is no way that people will forget you easily.
It’s a fact.
Earning money is easy.
But earning trust and respect takes more effort.
Networking with your business peers or veterans will get you noticed. Initially, you won’t find them paying heed to you, but once they do, they are never going to leave you.
People believe in aggressive marketing to increase sales and business. But try aggressive networking instead, and there will be no stopping for you in the future.
Remember, making friends in schools and colleges? It’s a similar situation in entrepreneurship, too.
Going social is one way you get confidence in networking with people in the future.
Did you ever come across someone who would go to a restaurant with you and start talking to the waiters and receptionists?
Well, you may feel awkward about it, but that’s their first step to get to know the surrounding market.
Start from a party that you attend, be it a family party or a party with friends. Join a group of your choice and listen to the conversations. Once you get the grip of it, start by putting forth your views and then turn it around to your business idea. This may look boring and slow, but slow and steady will definitely win the race.
Today, there are many millennial-made apps, like Bumble, LinkedIn, etc. that encourage people to build an entrepreneurial network in any industry of their choice. Start posting. Start swiping right to the connections that interest you.
For that matter, you can even join dating apps to build professional connections. Your first conversation about your business will be a good ice-breaker (You’ll thank us later for this pro tip).
Don’t Be Selective In Your Own Circles
A very common mistake that most “choosy” or “picky” people do, is being very selective in deciding who to network with.
Today, almost all industries are interconnected. A top-class hospital will always need catering or food services for their staff and patients. A hotel will always want to have options for good clothes vendors for room and restaurant linen.
So if you limit yourself to one or two industries, and sideline others, chances are that you may lose a lot of opportunities.
Expand yourself. Even if you are not sure about it at first. Take that first call that says “our budget is low”, when you know that you have a different area of expertise to explore.
Your Shyness And Fear Will Only Put You Behind The Race
Entrepreneurship requires you to go “out-of-your-circles” more than going “out-of-the-box”.
You are likely to face uncomfortable situations all the time. You have to become an extrovert if you are a highly introverted person. You can’t hide from people who you dislike. You can’t say goodbye to those people whom you are done working with.
Your fear, your shyness will start putting you behind the race of a successful entrepreneur.
You have to be outspoken. Pave your way and lead it too. Take others along the way and build a huge business “family”.
Remember Abhishek Bachchan in the film “Guru”?
No, you need not be exactly like him, but you are expected to know why to be like him. And take your own decisions from the existing lessons.
It’s A Long Road That Will Definitely Lead You To Your Vision
Networking is a continuous process. You don’t stop after a certain level of achievement.
Starting a business is not enough, you have to keep it running. And for that purpose, you may need to explore your potential networks.
It’s often expected from budding entrepreneurs to network only with business-minded people to start and run a business successfully. What they don’t realize is that business is made by people, for people, and with people.
So start networking – whether virtually, or face-to-face. Get that business idea in place, get started with your plans, and you will surely reach a place where you can write “successful entrepreneur” in your social media bio.
2021’s India Is Atmanirbhar: 10 Desi Unicorn Startups
With 10 startups joining the unicorn club in just 4 months of 2021, is India moving towards Atmanirbhartha?
The Many Firsts of a Fantastic First Quarter of 2021!
The Indian startup ecosystem got an impressive start in the first quarter of 2021. As per Venture Intelligence, Indian startups witnessed the highest investment in two years, and the capital flow was $4.2 billion!
This is not all.
Most of the startups saw a three-fold hike in valuation in their recent funding rounds. And among these, 10 got valued at more than $1 billion.
And hence, the Indian startup ecosystem received its new set of unicorns.
The unicorn story of 2021 is unique.
Because it is the one with many firsts.
The first health tech, social commerce, e-pharmacy, and infrastructure technology that made its way into the unicorn club.
According to the NASSCOM report, India will have 50 unicorns by the end of 2021.
But many industry experts and research firms believe that, if the current rate continues, India would easily surpass this number.
Here is the list of 10 Indian startups that gave 2021 a pleasant start.
- Digit Insurance
- Five Star Business Finance
The Beginning of Unicorn
If you know any entrepreneur personally, you may have an idea how difficult it is to raise the funds for a startup. It is definitely not a cakewalk.
The fundraising usually begins with family and friends. And as the company expands, it approaches angel investors, and then goes for the venture capitalists for the fund acquisition.
Even though it is a tough task for any startup to gain the investors’ confidence, some horses pass this race and achieve the unicorn tag.
For those who are new to the concept of unicorn, it is a startup that has a valuation of $1 billion or more in the venture capital industry. And Aileen Lee, the founder of Cowboy Ventures, coined the term ‘unicorn’ in 2013.
And since then, startups are continuously striving to attain this prestigious status.
India Didn’t Have a Great Start
When Aileen Lee coined the term ‘unicorn’ in 2013, the United States had 39 unicorns.
You may ask, what about India?
There was only one company called InMobi, the mobile-advertising services provider, that could make it to the unicorn club.
India was nowhere closer to the US in the matter of unicorns. The reasons were many:
- Limited funding
- Inadequate infrastructure
- A plethora of social and cultural challenges
- Lack of talent
- College students found entrepreneurship unappealing compared to the management jobs in large IT firms.
- The aspiring entrepreneurs often got rejected by the prospective brides and their families.
India Slowly Picked Up the Pace
Even though India’s unicorn story had a not-so-brilliant start, the current scenario looks promising.
As per Venture Intelligence data, there were only 10 unicorns until 2018, and since then, there has been the addition of 28 unicorns.
For an Indian startup, on average, it would take up to 8 years to turn into a unicorn.
India’s oldest startups, like Naukri.com, MakeMyTrip, and Justdial, which began its operation prior to 2005, took 15 years to achieve the unicorn title.
But this period has shrunk in recent times.
A recent report by Orios Venture Partners shows that the newer technology firms are hitting the billion-dollar mark in less time than their older counterparts.
The younger enterprises such as Swiggy, Rivigo, Razorpay, and Unacademy joined the unicorn club in 5 years on average. Whereas, Udaan, Ola, Electric, and Glance took just 2.4 years!
What could be the reason for this transition?
As per the Orios Venture Partners report, the reason behind the younger startups turning unicorn sooner could be:
- The prior entrepreneurship experience of the founders of these companies
- These founders know how to secure the funds more efficiently
- The growth mindset
There are two other reasons the investors from India, and all over the world, are backing the Indian startups with their funds:
- Indian startups leveraged the changing consumer behavior and quickly tweaked themselves to satisfy the needs of the customers
- These companies started functioning on the fact that “Focus on the market and the customers will ensure your growth”
Will ‘Atmanirbhar Bharat’ Soon Be a Reality?
India’s honorable Prime Minister, Narendra Modi, raised a clarion call to the country to be self-reliant, aka Atmanirbhar in all senses.
He also outlined the five pillars of Atmanirbhar Bharat:
- Demography, and
You may ask, how startups can help in making India self-reliant?
The Indian startup ecosystem had a slow and steady evolution from one sector to the other, ranging from IT/ITES to e-commerce, deep technology to hyper delivery networks.
Today, startups also have the most favorable conditions to survive and flourish, starting from the funding, development of regulatory infrastructure, global mergers and acquisitions, the influx of global investors to internationalization.
Do you know what brought this revolution to the world’s third-largest startup ecosystem?
It is the government’s mission to get as many entrepreneurial stories as possible through its programs like Startup India, Stand up India, Digital India, and Vocal for Local.
And the unicorn forms one-tenth of new industries coming into existence every year.
The increase in the number of tech unicorns is driving the investors’ interest in India’s startup ecosystem.
According to a report by NASSCOM, the startups in the technology field alone have created 60,000 direct jobs in 2019.
These data show that, if more startups come into existence, and get support from the investors and from the government, India could see a greater spike in job opportunities.
Atmanirbhar citizens make Atmanirbhar Bharat, don’t you agree?