Thursday, 10 Oct, 2024
By: Nikita Gupta
Image source: Inc42
As per the Ministry of Commerce and Industry, India stands in 3rd place as the largest startup ecosystem in the world and is expected to witness year-on-year annual growth of 12-15%.
India’s startup story has fuelled robust job creation in the country. The total number of startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) has increased from 300 in 50,000 startups in India in 2018 to 1,17,254 by the end of December 2023. As per the Economic Survey (2023-24), 117,254 DPIIT-recognized startups created 12 lakh direct jobs.
According to the Startup Ranking Framework 2022 Report, 31 states and UTs have startup policies, and 3102 startups received funding of Rs. 392 crores. Aided by the Startup India Initiative and startup hubs across government departments and ministries, the number of Indian technology startups increased to 31,000 in 2023 from 2000 in 2014, according to the Economic Survey 2023-24. The COVID-19 pandemic triggered consumer and enterprise demand for technology-driven solutions, creating more job opportunities. Although tech professionals still prefer working for big tech brands with world-class infrastructure, stable salaries, secured jobs, extra perks, and other benefits.
The presence of the Indian startup landscape is widespread with 56 industry sectors; 13% in IT services, 9% in healthcare and life sciences, 7% in education, 5% in professional and commercial services, 5% in agriculture, and 5% in food and beverages while rest being other sectors. Over 45% of the recognized startups emerge out of Tier 2 and Tier 3 cities out of which more than 47% have at least 1 woman director applying for more than 12,000 patent applications from 2016 to March 2024. One can assess the reach of startups in India which are directly and indirectly providing jobs based on interest, skillset, and salary expectations, and sometimes many startups provide direct jobs to the workers in their hometown.
A startup attracts employees for it provides conducive environment, flexible work hours, value to the employee’s work, and non-exhaustive hierarchies that give internal and external satisfaction to the employees. For India, startups are a win-win situation as it is involving more and more population with the workforce and are also contributing immensely to the global economic map. World Economic Forum recently released its report in which it said that Indian tech startups directly employed more than 10.34 lakh individuals in 2023, and the number is expected to rise in the coming years.
As per ‘The Indian Economy: A Review January 2024’ report released by the Department of Economic Affairs, 1.14 lakh government-recognized startups under the Startup India initiative generated more than 12 lakh jobs by October 2023. Considering the innovative bent of the youth of the country the Indian startup ecosystem has spurred the economic growth
However, according to the Economic Times, as reported by jobs and professional networking platform apna.co., a survey was conducted on 10,000 job seekers and around 1000 HR recruiters, only 27% of employees consider working with a startup only if it gives a sharp career boost while 73% of job seekers interviewed prefer stable and well-established companies to work given the current economic uncertainties and challenges faced by startups.
India’s job market is undergoing a dynamic shift where job seekers are choosing stable yet innovative workplaces with better career prospects irrespective of startups or chartered companies.
