India’s digital transformation is being emphatically driven by the government’s myriad initiatives to promote the startup culture. Resultantly, India is ranked among one of the top digitally mature economies with a vibrant ecosystem.
Digital disruption in India
The sense of urgency to embrace the digital way of transacting is now being felt among established market players considering the fast paced and sweeping changes being ushered in by digitally flourishing startups. A new wave of ideas to leverage the digital medium to facilitate ease of conducting business at various professional fronts is being unleashed each passing day. The local economy has got a new dimension added to it, thanks to innovative startup community that is enthusiastically adding new members.
Vibrant Startup Culture
The number of startups that have made their presence felt on the India’s business landscape is staggering, just trailing America and England. The catalyst for this dynamism is the tectonic shift in professional perception which is inspiring people to break free from stereotyped thoughts and think innovatively. Opportunity identification has become a way of life. Risks are being taken to monetise on prevailing market trends and popular customer sentiments. Government incentives have proved crucial in instilling this new mindset in Indian business perspective and the digital disruption drive is expected to continue to grow in full swing.
Providing access to strategic tools and enriching the environment to render it conducive to entrepreneurial breakthroughs are things that government is doing successfully. A number of budgetary concessions such as the flexibility of claiming exemption in income tax for any 3 years stretch within 7 years from incorporation date are fortifying the viability quotient of startups. Digital disruption would be facilitated further by the need for catering to a collaborative startup continuum which believes in celebrating innovations, does not get daunted by failures and pitfalls, and sees the potential for growth in everything.
Governmental initiatives to connect all citizens with broadband internet access and to make more than four hundred million people conversant with digital skills within next five years can prove to be the game-changer. Avenues for optimising on the potential of digitisation and promote further digital intervention are further being explored with startup promotional campaigns such as Atal Innovation Mission. The objective is to bring under one roof renowned academicians, visionary entrepreneurs, and ace researchers to galvanise the economic growth and generate further employment with trailblazing ideas that can be transformed into business realities.
Strengthening of digital infrastructure
Digital disruption is intended to make the lives of common people easier by causing service providers to embrace newer transactional media that requires minimal manual intervention and which can intuitively authenticate service needs and cater accordingly. Spurred by government initiatives, the majority of companies have shown affirmative action by diverting a sizeable chunk of their IT budgetary allocations for transformational projects. Sources indicate that digital aspects being addressed progressively with such moves encompass infrastructure convergence, big data, advanced data crunching techniques, analytics, superlatively delivering computing methods, and cutting edge apps. Organisation wide data accessibility for informed and conscious decision making is the thrust area. Technologies that keep entrepreneurs and team connected uninterruptedly for the exchange of information in real time and are location aware are being worked upon further. New training resources are being developed to reskill the IT team members.
Realisation of newer ideas requires adequate support. Setting up of innovation funds and incubators at academic levels, extension of the period for minimum alternate tax from present ten to new fifteen years, reduction of corporate income tax rates for startups, ability to offset tax losses by carry the same forward to next fiscal year’s account books, and relaxation in shareholding patterns are exemplary support instances that would make the digital space more vibrant. Venture capital fund with a budget of $1.5 billion has been set up to extend financial assistance to nascent businesses. The digital ecosystem is growing at a healthy pace due to sops such as inexpensive and swifter processing of patent applications and substantial rebate on patent expenses. Investors willing to support the startup class would also be extended significant tax benefits.
Global firms are also teaming up with federal agencies and private ventures for accelerating the growth of incipient companies through investments of direct or indirect nature. Intel, Google, Cisco and other heavyweights are nourishing the startup ecosystem as mentors, trainers, and financial backers. The start-up community with thinking that is off the beaten path would pave way for further digital disruption. This disruption is pivotal to address the problems afflicting the society like catering to the requirements of expanding urban populace, providing an infrastructural base for smart cities, bringing about improvement in academic and healthcare segments, create better employment opportunities, and more. The startup is all about taking calculated risks based on market forecasts and capability to read the pulse of the market. Thriving startup culture is the guarantee for imparting further momentum to healthy digital disruption.
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