Startup India action plan

Abstract

U.S. Census Bureau predicts that India will surpass China as the largest country in the world in terms of population by 2025, with a massive working age population. This rich demographic dividend, if channeled properly, has the potential to add about 2 percentage point per annum to India’s per capita GDP growth. The success of the country largely depends on the ablity of the economy to absorb and productively employ the new workforce enetering the foray and developing human capital to improve current skill level. And this unrealized dream can only be successful if the hithero elusive startup ecosystem kicks-off soon. The recently launched Startup India action plan demonstrates the governments eagerness to facilitate a successful startup ecosystem in the country. Our research in this paper identifies best practices of internationally startup ecosystems like Silicon Valley, Tel Aviv, Boston, New York and draws learnings such as leveraging diversity led innovation, clustered workplaces and access to capital that can be directly implemented in the Indian economy. The research also forays into the motivation behind ethno-cultural entrepreneurial motivation of historically successful business communities and draws learning from them. Finally we also conducted primary research by interviewing startup founders and provided recommendations regarding requisite government actions in the domain of compliance and cash management norms .