India's startup ecosystem has the potential to create up to 12.5 lakh direct jobs by 2025, as compared to the 3.9-4.3 lakh direct jobs in 2019, according to a new report from industry body National Association of Software and Services Companies (Nasscom).
The report titled "India's Tech Startup Ecosystem" states that the number of indirect jobs created by the startup ecosystem in India can jump to 39-44 lakhs by 2025 from 14-16 lakhs jobs this year.
The report added, “India's talent base is expanding beyond large cities as fresh graduates are choosing to stay back in non-metropolitan cities. These individuals have an almost similar exposure to technologies via the Internet. This enables the founders to recruit quality talent at a relatively lesser cost - allowing better runway and also a base for growth.”
As per the analysis, the Indian startup ecosystem is expected to grow about four times by 2025.
The research brought out in collaboration with global management and strategy consulting firm Zinnov further found that 18 percent of all startups are now leveraging deep-tech and fintech, enterprise, and retail tech which are the most mature sectors with strong metrics across dimensions. It also added that there is increased activity in edtech, retail & retail tech, HR, and health tech technology startups with significant improvement in sectors like agritech, aerospace, defence, and space.
There is no doubt that India boasts of one of the biggest startup ecosystems in the world. The investments in the startup ecosystem are also a testimony to their huge potential. In 2019, the investment in the startup ecosystem has increased 6 percent year-on-year during the January to August period, validating the fact that investors are also equally gung-ho about the potential of startups to add value and create jobs.