India is currently considered one of the largest startup ecosystems in the world. In 2016, the Indian prime minister launched a $1.5 billion fund for startups including new tax breaks for companies and their investors. With one of the youngest populations worldwide and a growing mobile and internet penetration (expected to lead globally by 2022), India is uniquely set up for e-commerce and e-business growth.
With an increasing rate in urbanization and a highly English-speaking population, India has been tactically able to attract a growing number of foreign direct investments. India has traditionally been a favorite destination for the western world to outsource business processes, implement collaborations, partnerships and subsidiaries owing to the relatively cheap labor costs making it one of India’s key competitive advantages.
Delhi, Bengaluru and Mumbai are India’s leading startup hubs in terms of funding and investment deals. Bangalore is frequently referred to as the Silicon Valley of India. Indeed, the Information Technology sector is a core strength of India and the world’s top IT destination with a share of 55% of the world’s IT sourcing. IT in India comprises of 7.7% of the nation’s GDP. This specific industry led to the economic transformation of India and created a brand of inexpensive and good quality IT solutions.
Sources: Indiatimes, IBEF India, YourStory