startup india: ETILC will facilitate growth for small Indian startups: Technology Subgroup

The Steering Committee of the ETILC Technology Subgroup held its first meeting and determined the direction of the committee’s work in 2022. The committee will focus on supporting the Indian startup ecosystem. Before making this decision, the group took into account many factors. They took into account the areas that the government is already working on, the biggest needs of the industry and the strongest aspects of the ETILC network.

Nitin Sakhni, Founder and CEO of Kamadhenu Technologies and Moderator, ETILC Technology Subcommittee

“Talent will differentiate companies, and those economies that have better skills and talent that are suitable for new trends, such as renewable energy, AI, machine learning, cloud, IoT, etc., will get better economic results. As far as we are concerned, this means that we can contribute in two great ways: one in the field of professional development and the other in the field of supporting high-tech startups that use AI and data science skills. According to the World Intellectual Property Organization, India’s investment in R&D has declined over the past decade from 0.85% of GDP in 2008-2009 and has remained stagnant at around 0.7% over the past few years. Excluding the leading economies that spend on research and development, this is much lower than in other BRIC countries, and this is something that leaders across India need to consider to remain sustainable and keep national economy growth at over 7-8% per year “.

“Currently, despite the fact that India has a huge set of talented engineers, only 3% of them have the appropriate skills to work on next-generation technologies such as AI and data science, etc.”

– Nitin Sakhni, Founder and CEO of Kamadhenu Technologies and Moderator, ETILC Technology Subcommittee

Correlation between R&D and growth

According to a report by the World Economic Forum, Israel, South Korea and Switzerland spend the most on research and development when looking at spending as a percentage of GDP. The US (2.84%) and China (2.19%) rank 9th and 13th on the list. India spends 0.7% of its GDP on research and development.

According to Inekwe, John Nquoma. “The contribution of R&D spending to economic growth in developing countries”
A study of social indicators – there is a beneficial impact of R&D spending on economic growth in developing countries. The impact of R&D spending on growth is positive for economies with higher middle incomes, while in low-income countries it is insignificant. So if India is aiming to become a $ 5 trillion economy, it needs to increase its research and development spending.

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Jaya Vaidhyanatan, CEO of BCT Digital

“If you look at the United States, most of the advanced research is done at leading universities. They receive large amounts of R&D funding and work closely with both the government and corporations. India needs a roadmap for research and development, and that is something we can contribute. ”

Summit Court, Vice President of the Group and Head of APAC, GlobalLogic

Accelerating the pace of technological innovation plays a key role in transforming India into the next digital hub. It is necessary to develop a robust roadmap for research and development, focus on public-private partnerships, shift the focus to the most important areas where development and technology intervention is required, and thus improve India’s research ecosystem to make India a breeding ground for research and development. developments in the world. .

“Significant investment in research and development is needed to increase our country’s GDP and unleash the potential for a truly digital economy.”

– Sumit Court, Vice President of the Group and Head of APAC, GlobalLogic

Indian startup ecosystem

According to the Startup India initiative, the country ranks third in the world’s largest startup ecosystem; It is expected to grow on an annualized basis by 12-15% per year. In total, there are more than 50,000 startups; about 8,900 – 9,300 of them are technology startups. There are also 83 unicorns with a total valuation of $ 277.77 billion. Although the size of the private equity transaction and total funding are increasing every year, there are still problems.

Despite the lack of work visas in the US, many Indian startups move to the US at an early stage at the earliest opportunity. This is partly due to what startup accelerators and venture capitalists require. Other times it’s about getting closer to the market when they serve the U.S. market. But there are also operational reasons, more features and a wider network to which you can use. This is especially true of B2B startups that want to compete for both MNCs and well-funded startups.

Himanshu Goel, Founder and CEO of Azpiro Systems

“Many Indian SaaS startups have decided to relocate their work to the US because they still do not have the ability to sell their products and services to major Indian companies. One of the biggest contributions ETILC members can make is supporting these startups, contracting them with large firms, and acting as a testing ground for usage options and identifying new opportunities for founders to create new startups. ”

“In the United States, large companies are much more open to working with startups.”

– Himanshu Goel, Founder and CEO of Azpiro Systems

Government initiatives for startups

More than 4,000 startups took advantage of government initiatives last year and Rs. 960 million rubles were allocated to them under various schemes. For startups, there are also several tax benefits, such as an IT tax exemption for three years. In terms of legal support, there is a rapid patent application system, and assistance is also provided in filing applications. There are also relaxed rules for public procurement schemes and credit guarantees. In addition, the government has set up 31 innovation centers, 15 startup centers, 15 technology business incubators, 7 research parks and 500 Atal Tinkering Labs.

However, many startups can still benefit greatly from interacting with industry leaders and teachers and getting advice on how to optimize their business models.

Shridhar Dharmarajan, EVP & MD, Hexagon Manufacturing Intelligence

“We are already working very closely with NITI Aayog, and one of their biggest challenges is training. In this area, we have already set up a center of excellence in Aurangabad to train people and will set up a few more in the near future. ”

Dinesh Agarwal, MD, Panasonic Life Solutions India

“There are some very small technology companies, especially in the IoT space, that need hands. When we searched for power management solutions from IoT automation companies, we found many startups from Bangalore that have excellent products that match international but at a small cost. Such companies will benefit greatly from working with ETILC member organizations. ”

“It is very difficult for these firms to raise funding if they are not accepted and run by large companies that can integrate these technologies into their existing or new products.”

– Dinesh Agarwal, MD, Panasonic Life Solutions India

The next steps are for the steering committee

The group will prepare a presentation on all areas through which ETILC can further assist in the development of Indian startups, and will then meet with representatives of NITI Aayog.

Members of the steering committee

  • Nitin Sakhni, founder and CEO of Kamadhenu Technologies
  • Jaya Vaidhyanatan, CEO of BCT Digital
  • Summit Court, Vice President of the Group and Head of APAC, GlobalLogic
  • Himanshu Goel, Founder and CEO of Azpiro Systems
  • Shridhar Dharmarajan, EVP & MD, Hexagon Manufacturing Intelligence
  • Dinesh Agarwal, MD, Panasonic Life Solutions India

Knowledge Partner: Balaji Sridhar, Vice President, MarketsAndMarkets

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