India is the largest information technology hub in the world and it is growing at a faster rate. It is a home to 40% of the country’s IT industries out of which Bangalore tops the list and is called the Silicon Valley of India. Bangalore is a real technological hub with dozens of start-ups setup for Indians by Indians. These companies are giving tough competition to big companies that rule the industry all over the world. Tech companies of India have created jobs, uncovered opportunities and provided resources that solved the problem of unemployment and poverty and also enhanced the lifestyle of the people of India. According to a report of Nasscom, India ranked 3rd largest start-up ecosystem with more than 100 accelerators, 200 active angel investors and over 4200 start-ups operating in the region.
Here are the reasons why India has become the fastest growing tech hub in the world:
Upsurging connectivity is the main reason behind the growth of tech hub in India. Over 300 million people have access to internet and spend almost 3 hours in a day on an average on their smartphones. India has become the second largest connected nation after china in the world. The reason behind this upsurge is the economical mobile plans and low cost smartphones and laptops which inspired the low income group also to connect to the internet. Consumer spending has also increased because of the increase in connectivity, employment, income level and better lifestyle. The change in income level reflects the growing and more developed economy with higher purchasing power.
- Young and vibrant start-up ecosystem
India tops the list of highest young population in the world with over 356 million youth. It is the home to some of the youngest entrepreneurs in the world. The startup founders here belong to an average age group of 25-30 years. The Indian ecosystem have become quite friendly towards young entrepreneurs by increasing the access of funding and lowering the cost of building the company from scratch. The young entrepreneurs are quite optimistic towards adopting new trends and ideas as most of the startup companies in India are the adaptation of foreign equivalents but still they do not see them as clones but as mutants. The local innovations in India will rise up the tech industry but this might take some time, so one should always encourage local brands.
- Investments, mergers and acquisition
Indian start-ups have raised almost USD 8.5 billion funding with almost 1000 deals sealed. Many foreign investors and non-traditional investors have shown interest in investing in these start-ups. The participations from hedge funds and private equity funds in series C and D rounds were also the causes of this rise. However, the Indian tech companies are making more acquisitions and mergers not only to expand the user base and operations, but also to possess access to the simplest engineering talent available. According to various researches, the tech giants will invest in Indian companies to acquire the market.
- Opportunities and new trends
As discussed earlier, Indian young entrepreneurs are not hesitant to adapt new trends and innovation to enhance their business. They are always eager to grab opportunities that come in their way and leave no stones unturned to enter the global market. More start-ups are planning to go global by making mergers and acquisition and exploring newer markets. Those who see endless possibilities can achieve a lot and that is why India has become the fastest growing tech hub in the world.
Indian market have seen lot of ups and downs including shift in economic environment, depression, inefficiencies within system and cultural barriers but still it blossomed out of every hardships and has created an ecosystem which is assisting entrepreneurs to thrive. It has provided a platform to the young entrepreneurs to learn, grow and outperform in their sectors and produce best of companies. The country has paved its way through hard times and is now moving towards development with the help of young, ambitious and hardworking entrepreneurs.