Even though the Indian startup ecosystem witnessed subdued funding in 2016, the year-on-year growth of startups getting funding grew by 8% in the same period, states a report by IT industry body Nasscom and research firm Zinnov.
Amidst the popular belief of the Indian startup ecosystem’s slowdown, India continues to harbor the third largest start-up base, marginally behind the UK as per the NASSCOM-ZINNOV start-up report titled“Indian Start-up Ecosystem Maturing – 2016”. The report further states that the ecosystem is poised to grow by an impressive 2.2X to reach more than 10,500 start-ups by the year 2020. The report was launched on the side-lines of NASSCOM Product Conclave 2016 in Bengaluru in the presence of C.P. Gurnani, Chairman, NASSCOM; R. Chandrashekhar, President, NASSCOM, Ravi Gururaj, Chairman, NASSCOM Product Council and Pari Natarajan, CEO, Zinnov.
The report states that the number of tech startups in India is expected to grow by 10-12%, to over 4,750 by the end of 2016, and will give employment to over 2,10,000 people.
"Technology startups are creating a new identity for India, and its technological prowess. Besides, solving India-centric problem these startups are also coming up with cutting edge solutions which are making a global impact," he adds.
When asked about the low ranking of India in the ease of doing business ranking, Nasscom President said it is a hugely worrying issue for the growth of startup ecosystem in the country. India ranks 130th position in terms of ease of doing business.