India’s emergence as a center of technological and entrepreneurial innovation is a cause for celebration. The country has emerged as the third-largest start-up landscape globally, with the number of tech start-ups projected to grow from 68,000 in 2023 to 180,000 by 2030. As of January this year, India boasted 111 unicorn start-ups with a combined valuation of over $350 billion.
This start-up revolution is no longer limited to major cities. There is a growing trend of start-up activity in Tier-2 and Tier-3 cities. Five key initiatives have contributed to India’s improved standing in the Global Innovation Index.
First, India’s rise is fueled by its robust innovation ecosystem, characterized by a vast knowledge capital, a dynamic start-up landscape, and collaborative efforts between public and private research entities. Second, various government-led initiatives, including those by the Departments of Science and Technology and Biotechnology as well as the Atal Innovation Mission, have played crucial roles in enriching the national innovation environment. Third, policy-driven innovation, spearheaded by NITI Aayog, has optimized efforts in strategic sectors such as electric vehicles, biotechnology, nanotechnology, space, and alternative energy.
India’s growing tech start-up landscape
Fourth, India has demonstrated notable progress in key indicators like domestic industry diversification, patent origination, and exports of cultural and creative services. Finally, among lower-middle-income countries, India stands out for having the highest innovation quality.
The Atal Innovation Mission (AIM) has fostered innovation at the grassroots level. It has established over 4,880 operational Atal Tinkering Labs in more than 650 districts, providing access to innovative tools to over two million students. It has also selected 102 universities, institutions and private players to establish Atal Incubation Centres.
Today, India is the top innovative lower-middle-income economy in the world, ranking first among the 37 lower-middle-income group economies and first among the 10 economies in Central and Southern Asia. From being ranked 81 in 2015 it has reached the 40th position in the world today. A culture of innovation is now seen even at the school level.
This initiative spans the entire country, encompassing virtually all top-notch sectors of the economy. The cascade effect will be tremendous, propelling India’s innovation ecosystem to new heights.
