The Economic Survey 2018-19 has placed India at third position in the global startup ecosystem and revealed that the year 2018 was ruled by foodtech startups in the diversified ecosystem.
According to the Economic Survey, the Indian startup ecosystem witnessed a funding of $7.5 billion in 2018 as compared to $4.3 billion in 2017 though the number of deals has actually saw the decline in this two year period.
“Startups and innovative ventures face significantly greater uncertainty than traditional “brick-and-mortar” firms. Yet, policy ambiguities that create collateral damage for genuine risk-takers can affect investments by dampening the animal spirits in the economy,” the Survey said.
The retail segment of startups saw the highest investments in 2018 at $2.09 billion followed by food at $1.65 billion. The year also saw foodtech companies like Swiggy and Zomato turning into Unicorns.
Other than achievements, the survey also warned that that policy ambiguity is creating hurdles for the startups in the country.
While, the Economic Survey is presented in the Indian parliament every year by the Department of Economic Affairs. The survey is designed under the guidance of the chief economic adviser, finance ministry. The survey reviews the developments in the Indian economy, summarizes the performance on major development programs, and highlights the policy initiatives of the government.
The Survey stressed that it is important to continue the creation of an ecosystem for private investment, especially in the new economy, to enable the virtuous cycle of investment, demand, exports, growth and jobs.
“Growth in the new economy cannot be fostered without an ecosystem that rewards innovation and entrepreneurship,” the survey noted.
Whereas, according to Economic Survey, as on March 1, 2019, 16,578 new startups were recognised across 499 districts in India.
Among the distribution of startups, Maharashtra, followed by Karnataka and Delhi, are among the top ten performers in terms of State-wise distribution of recognised startups in India.