A digital-first ecosystem

The Govt’s initiative, India Stack, has revolutionised fintech sector

Indian IT Industry has moved up the value chain over the last three and half decades. IT Industry which is having a size of $194 billion has empowered Government, industries, and academia for achieving their mandate in an accelerated manner. The strong foundation of IT Industry is also helping the government in executing its vision of becoming the country as a digitally empowered society. This Industry has enabled policymakers to plan and roll out the digital initiatives in a short span of time with desired outcomes. Digital push by the government through its initiative, i.e., India Stack, has changed the entire landscape of the fintech sector. The efforts of the government to encourage start-ups over the years through a set of fiscal and non-fiscal incentives have started paying rich dividends by not only creating a culture of the knowledge-based economy but also accelerating the pace of employment generation across the nation. The biggest testimony to the success of the Digital India and Start-up India programs is the emergence of unicorns across the sectors making India the global unicorn hub. According to the estimates, as of January 2022, India had as many as 83 unicorns with a total valuation of $277.77 billion. It’s a number that was even difficult to visualize a couple of years ago. What is significant is that the Covid-19 pandemic and the devastating second wave of coronavirus did not deter the budding entrepreneurs from moving ahead with their ideas and realizing big dreams. During the pandemic, the policy framework allowed the start-ups to progress unhindered along their innovation journey to become unicorns.

India’s ever-increasing number of start-ups reflects its strong start-up ecosystem, in conjunction with its comprehensive policy framework, and the willingness of young, enterprising Indians to experiment with their innovative ideas and pursue their hope of becoming big and making India proud.With a humble beginning about six years ago, today the country has about 61,400 recognized start-ups as of January 2022. During 2021, the union government has recognized over 14,000 start-ups as against 733 in 2016-17. This is a clear reflection of the rapid growth of the start-up culture in the country and the opportunities to which the educated and enterprising youth are aspiring. Budget 2022 is focused on the digital economy which in any case leverages the potential of IT Industry in a big way. By encouraging digital payment, establishing a digital university, and launching digital currency, the government is marching to transform the country into a digital nation. A market-driven economy requires the support and encouragement of budding entrepreneurs, which is why Budget 2022 announced more perks for start-ups.?Start-ups established before March 31, 2022, were provided a tax incentive for three consecutive years out of ten years from incorporation however Budget 2022 has extended one more year of tax incentive for the eligible start-up, that is, up to March 31, 2023. The extension of the tax incentive-awarding period is much-welcomed by the industry and will surely encourage budding entrepreneurs to never stop working hard to one day become unicorns. India has become a hub of technological innovation, entrepreneurship, and piloting employment-rich economic growth.?Now, Tier 2 and 3 cities are emerging as the next frontier for talent and economic growth across the country to bring a level playing field across all regions. Budget 2022 firmly reiterates the government’s commitment to innovation and technology, with the IT sector set to grow across the board, with technology emerging as the fastest-growing segment. As start-ups and unicorns proliferate, the country will be able to move ahead at an accelerated pace and realize the $5 trillion economy sooner rather than later.

(The writer is an IT thought leader and leading Technophile. The views expressed are personal.)

The article is originally published on:- https://www.dailypioneer.com/2022/columnists/a-digital-first-ecosystem.html