The spirit of Swadeshi and entrepreneurship has been fueling the fastest economic growth for Bharat in the world, with a perpetuating momentum to employment creation. Economic patriotism is commonly referred to as Swadeshi. With the clarion calls given two years ago by the Prime Minister for being ‘Vocal for Local’ and ‘Make for the World’, supported by strategic interventions like Production Linked Incentive (PLI) scheme, Bharat has ushered in an era of fastest growth in global manufacturing, exports and overall economic turnaround. The startups’ ecosystem of Bharat too, has become a key contributor to innovativeness and job creations in the economy. The startups of the country are playing key roles in the space programme, defence manufacturing and high value artificial intelligence driven solutions for the world.
ECONOMIC PATRIOTISM
Swadeshi, aimed at patronizing ‘Made by Bharat’ products and brands is going to bolster rapid domestic manufacturing, creation of ever more jobs and inclusive growth with expansion of indigenous ownerships in trade, commerce and industry in the country. Japan is an ideal example where, on account of a strong sense of Swadeshi, only four per cent foreign cars are sold in Japan. Ninety-six per cent cars, being sold in Japan are Made by Japan. In contrast, in India only 15 per cent cars (of Tata and Mahindra) being sold are swadeshi or Made by India, the rest are foreign-owned brands. Out of this economic patriotism in all products and services, Japan has as high as 10 per cent share in world manufacturing, in spite of a mere 1.6 per cent share in the world population. Swadeshi would ensure a major share of Made by India products and brands for India, into all categories, to facilitate indigenous manufacturing with domestic ownership and control over the industry, trade, commerce, services and agriculture, including the food system.
In Five years between 2017 and 2022, Bharat has seen a 15-fold rise is the total funding of startups and a nine-fold rise in the number of investors
In order to curb the trade and current account deficits and to remedy our growing dependence on foreign investments, the government’s growing economic patriotism is succeeding to save trade, commerce, industry, infrastructure, services and agriculture from further slipping into foreign ownerships. In pursuit of self-reliance and Swadeshi, inter alia the government is facilitating development of ‘Made by India’ products and brands through endeavours like promoting and adopting techno-nationalism and economic patriotism. Developing homegrown technologies and promoting these, through mandatory norms and other methods, is the key to enhancing techno-nationalism. This policy alone can help launch more ‘Made by Bharat’ products/brands and alleviate the country’s growing dependence on imports, FDI and prevent outflow of money leading to job losses, depreciation of rupee. Economic patriotism inter alia also reflects one’s resolve to buy Made by India goods, wherever available. Which can be said to be pursuing ‘Swadeshi Philosophy’.
Swadeshi to promote Domestic Economy
If we take a glance at the ownership and control of our industry, commerce, services and agriculture, we find overwhelming foreign ownership and control of foreign brands. Almost cent per cent share in soft drinks; two-thirds in consumer durables (including white goods); up to three-fourths in FMCG, health care and hygiene-related products and toiletries; more than 85 per cent in four wheelers; 50 per cent plus in scooters and so on, is controlled by foreign MNCs. Today, most of the product lines in the markets are dominated by foreign brands, either imported, or merely assembled i.e. made out of imported components, whereby most of the value additions are added outside the country. The technology-intensive value additions were hitherto located outside the country, depriving the country of any high-tech value additions and the underlying sunrise technologies. It poses a sensitive and serious question that, who should or would own the means of production of the country, including the service organizations as well as our trade? Equally formidable question is who should own the means of employment, media and technology. So, the government’s all-out efforts for indigenous manufacturing are aimed at remedying this scenario.
STARTUPS ECOSYSTEM & IT SECTOR: THE NEW OIL
Bharat’s exports of IT services, almost nearing $200 billion, are more than crude export of any of the oil producing countries. Besides, the startups hold even bigger promise of wealth creation for the nation.
Bharat has emerged as the third largest ecosystem for startups globally, with over 1,12,718 DPIIT-recognized startups spread across 763 districts of the country. This widespread presence of startups is highly encouraging. The innovations in Bharat are not just limited to a few sectors. We have startups solving problems in as many as 56 diverse industrial sectors. The Bharatiya Startup Ecosystem has seen an exponential growth in the past seven years from 2015-2022.
A 15-fold rise is visible in the total funding of startups in the country in last seven years. Likewise, in this period, a nine-fold increase is witnessed in the number of investors in startups ecosystem. Also, a seven-fold increase is traced in the number of incubators. Incubators are key promoters of startups.
UNICORNS: THE ZENITH OF STARTUP ECOSYSTEM
Bharat’s unicorns are also flourishing very fast. These startups turning into unicorns are not only developing innovative solutions and technologies but are generating large-scale employment also. Till FY 2016-17, approximately one unicorn was being added every year. Over the past four years (since FY 2017-18), this number has grown exponentially, with a whopping 66 per cent year-on-year growth. As of October 03, 2023, Bharat is home to 111 unicorns with a total valuation of $349.67 billion. Out of the total number of unicorns, 45 unicorns with a total valuation of $ 102.30 billion have emerged in 2021 and 22 unicorns with a total valuation of $ 29.20 billion were born in 2022.
The year 2021, 2020, and 2019 saw the birth of the maximum number of Bharatiya unicorns with 45, 11, and 7 unicorns coming each year, respectively
Unicorn is described as a privately held startup company with a market value of over $1 billion. The new trend for ‘work from home’ during the pandemic has triggered and fueled the growth of digital businesses leading to development of unicorns. Indian startups have offered pioneering solutions for work-from-home. Mainly three factors have led to a thriving digital payments ecosystem, supported by large smartphone user base and digital-first business models. Tech companies, which have become household brands, are contributing to the unicorn boom in India, with growing smartphone penetration and digitization of commerce. Besides, fintech, e-commerce grocery, SaaS and marketplace players are contributing a lot to the unicorn growth.
DECACORNS MOVEMENT
The global startup ecosystem is gradually turning the Unicorns into Decacorns. We are gradually transitioning from the age of unicorns to the era of decacorns. A Decacorn is a company that has attained a valuation of more than $10 billion vis-à-vis $1 billion for unicorn. Bharat has five startups namely Flipkart, BYJU’s, Nykaa and Swiggy that have been added in the decacorn cohort.
The year 2021, 2020, and 2019 saw the birth of the maximum number of Bharatiya unicorns with 45, 11, and 7 unicorns coming each year, respectively.
Bengaluru is Bharat’s unicorn capital, with the largest number of unicorns headquartered there, followed by Delhi (NCR) and Mumbai. Traditional sectors such as E-commerce, Fin-tech, Supply Chain & Logistics, Internet Software & Services do dominate the arena but a strong wave of unconventional sectors such as Content, Gaming, Hospitality, Data Management & Analytics etc. are also rising.
Unconventional sectors and sub-sectors are also entering into the unicorn space including NBFCs, Conversational Messaging, Cryptocurrency Exchanges, D2C, Cloud Kitchens and many others.
Bharatiya unicorns are also exploring the public listing avenues to realise the growth potential. Some of the big unicorn names that offered an IPO include Zomato, Nykaa, PolicyBazaar, Paytm and Freshworks, while many are already in line such as Delhivery, Mobikwik and CarDekho. Today, 1 out of every 10 global unicorns are emerging in Bharat.
HEALTHCARE STARTUPS
The HealthTech market in Bharat is estimated to reach $5 billion by 2023, growing at a CAGR of 39 per cent post pandemic. Digital shift, use of better technology, and favourable government policies are facilitating the growth of the market.
Noida-based healthtech startup Innovaccer has become the first Indian unicorn in the healthcare sector currently valued at $1.3 billion. Innovaccer analyses healthcare data to provide actionable insights to healthcare providers, hospitals, insurance companies and other organisations and businesses.
Pharmeasy, an online pharmacy and diagnostics brand has also become a unicorn, bagging a valuation close to $1.5 billion. The online pharmacy is now planning to go public soon, eyeing a valuation of about $7 billion through its IPO. Tata 1mg, Cure.fit and Pristyn Care have also joined the unicorn club with 5 Healthcare unicorns with a total valuation of $12.79 billion. Startups such as Practo, HealthifyMe etc. are also in the queue.
Thus, the impetus for Made by Bharat products and brands is going to turn Bharat into a global manufacturing hub. The startups, unicorns and decacorns are going to turn Bharat into a hub for emerging technologies. According to the International Monetary Fund (IMF), Bharat is expected to become the third largest economy of the world by 2027, leaving behind Germany and Japan. In 2013, Bharat was at 11th rank and has left almost six countries behind in the last 10 years.
By 2047 Bharat shall be the second largest economy in the world by virtue of Swadeshi and growing startups ecosystem.
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