Industry should back startups…if startups and industry work together, then we will get benefits manifold: HM Shah
Shah also said that the number of unicorns in the country has increased from one in 2014 to over 100 currently
India’s industry should not think about increasing its speed but about changing its scale and if scale is to be changed, then the thrust has to be given to R&D: Shah
Union Home Minister (HM) Amit Shah on Thursday (August 4) urged the country’s startups and industry to work together to leverage their full potential.
“Industry should back startups. Startups can not leverage their full potential in isolation. We already have 100 unicorns. But, if startups and industry work together, then, we will get benefits manifold,” Shah said.
Addressing the third edition of Sankalp Se Siddhi conference in Bengaluru, Shah called on the industry to back startups as there is a ‘kind of linkage’ between the two. He also urged the industry to look towards research and development (R&D) to scale up.
“Time has come for industries to put thrust on R&D, and CII should become a platform to promote research. India’s industry should not think about increasing its speed but about changing its scale and if scale is to be changed, then the thrust has to be given to R&D,” the HM said.
The minister also called for paying special attention to defence and energy sectors.
Touting the schemes of the government, Shah said that the country has improved its position on the ‘Ease of Doing Business Ranking’ to 63rd position from 142nd in 2014. He further added that the number of unicorns in India has jumped from one in 2014 to more than 100 currently.
Lauding entrepreneurs, he said that the youth are representing the country on the global stage.
After seeing an exponential growth in 2021, the Indian startup ecosystem is going through a challenging 2022 with a decline in investment amid whispers of a ‘funding winter’. The ongoing war in Europe, rising inflation and tightening of monetary policies by central banks have made startup investors wary.
As per Inc42 data, as many as 11,363 employees have been laid off by startups, including unicorns such as Vedantu, Ola, Meesho, Unacademy, in 2022 so far.
While the country minted 44 startups in 2021, it has generated 19 unicorns in 2022 so far. Last month, blockchain startup 5ire raised $100 Mn in Series A funding to become the 105th unicorn of the country. Fintech startup OneCard also raised about $100 Mn in Series D round led by Temasek in July to enter the unicorn club.
