Economic Survey 2016: 19,400 startups in India however exit valuation for investors still low
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India may boast of being home to around 19,400 technology-enabled startups, but exit valuation for the investors looking to cash in on the initial Economic Survey 2015-16, tabled by Finance Minister
"Indian startups have raised USD 3.5 billion in funding in the first half of 2015 and the number of active investors in India has increased from 220 in 2014 to 490 in 2015," the survey noted.
It added about 2,000 startups have been backed by venture capital/angel investors since 2010, of which 1,005 were created in 2015 alone.
"It is important that startups too see 'exit', which could take the form of these companies being listed, allowing the original private investors to cash in on the initial investment and plough it back into other similar ventures. Exit valuations in India are still low," the survey said.
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The survey said there were 19,400 technology-enabled startups in India as of January, of which 5,000 had been started in 2015 alone.
India is also the homeground for eight startups in the 'Unicorn Club' with valuations greater than USD 1 billion (as of December 2015).
The survey said e-commerce in India is expected to grow at 21.4 per cent in 2015-16 to reach USD 17 billion.
"India home to a new breed of young startups has clearly evolved to become the third largest base of technology start ups in the world. Within one year, the number of startups have grown by 40 per cent, creating 80,000-85,000 jobs in 2015. This emerging sector is set to get up a fillip with the Startup India programme," it said.
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Startup India is the flagship initiative of the Apart from technology, the startup movement is being extended to an array of sectors including agriculture, manufacturing, healthcare and education.
"Startup India will turn Indian youths from job seekers into job creators. It will encourage
Under the Startup initiative, various action plans have been proposed including self-certification to reduce the regulatory burden on startups, setting up Startup India hub to create a single point of contact, enable knowledge exchange and access to funding; as well as relaxing norms of public procurement to provide an equal platform to startups in the manufacturing sector.
The proposals also include legal support and fast-tracking of patent examination to promote
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