India’s Tech Start-up Ecosystem, the latest report by National Association of Software and Services Companies (NASSCOM), states that the country’s startup ecosystem has the potential to generate nearly 12.5 lakh direct and 40 lakh indirect jobs by 2025. In 2019, the numbers were projected at approximately 4 lakh and 15 lakh respectively. According to the report, there are three major reasons to count for the expected increase:
The local youth of non-metropolitan regions has amped up its skill quotient in the recent past. With improved internet accessibility via cheap internet packs and endless online resources, the competition from the areas has been giving the urban candidates, a run for their money.
Various startups are slowly expanding their presence in the remote cities due to its untapped potential. Services ranging from grocery delivery to rental cars and hotels are exponentially improving their presence in the areas. As a result, the expansion is creating job opportunities for the skilled youth of the respective city. Furthermore, infrastructure, employment, and overall operations – the overall cost of these three individual parameters are significantly less in comparison to the metropolitan.
Artificial Intelligence and Machine learning have drawn enough attention in the past to create an annual, fold by fold increase in the number of skilled professionals. Simultaneously, the two technologies have found their use across various industries such as Education Technology, Health, Defense, Finances, etc. The amalgamation of these factors can be attributed to the 40% Compound Annual Growth Rate (CAGR) in deep-tech start-ups from 2014 to 2019.
Consequently, the number of jobs and corresponding cheap talent pool creates a favorable ecosystem for both the parties. This, in turn, has possibly lead to the 16% year-on-year increase in investments in start-ups from January to August 2019.