The rise of India's Tech Sector

India's new power projection: The rise of its Tech Hubs

A glance at the ecosystem charting the course for India's Digital Future.

Welcome to the first issue of Tech Mantras! Your gateway to distilled content that cuts through the noise about the Indian startup ecosystem!

I scourge various articles and condense them into a read of mere minutes, and while the first article may be a tad bit lengthier, I hope it serves as a fitting introduction.

There is an abundance of noise online about the constantly evolving world of Tech, but they are American-centric, with considerably lesser coverage on the South Asian ecosystem. However, with recent developments, the region has been cast into the limelight, and rightfully so.

It may not be the first of its kind, but definitely a first for the South Asian Space.

So without further ado, sit back and enjoy.

Infinite Potential

1.4 Billion people. And Counting. Untapped until recently, India’s technology sector is making huge strides, accessing a new set of users with the rise of its digital penetration into the fabric of Indian Society. The first issue of Tech Mantras seeks to provide a quick overview of India’s blossoming tech sector, and why investors remain bullish on its scalability.

What Manufacturing is to China, Software is to India.

With internet penetration reaching new highs, the society is ripe for a slew of startups to make the most out of it, coupled with a state-of-the-art domestic payment system, with more than 1 trillion in volume last year.

This makes for a very potent combination, one that could allow 1.4 billion citizens to access global financial structures through a click.

Young, Skilled and Cheap Labour

India has a hugely competitive landscape and attitude, and the West uses this to their advantage.

Want to build an online platform? Freelancers from India. Need a fully functional management system? Outsource it to Indian agencies.

And it shows. Tech investment has nearly tripled in India in the past, wait for it, just 3 years.

In 2021 alone, India has produced more than 39 unicorns, and a large part of it has to do with the removal of a significant amount of bureaucratic hurdles, the demise of the 'License Raj'

Favourable Policies

Through the 'Make In India' initiative, India was made into a manufacturing hub, with logistics revenue expected to hit the 380-billion mark by 2025, and Technology is needed to scale and maintain it.

Logistics has been the backbone of economic growth, and the government has now set its sights on driving the Growth of SME's and MSME's.

Digital and E-commerce scale ups, bolstered by financial and acceptance initiatives offered by the program, are now expanding at a rate never seen before, aggressively growing their footprint across the subcontinent.

And the movement has just begun. While there may be lessons to be learnt from the recent IPO's of Indian companies.

The road from profitability to continued Growth

While growth may be an objective of scale ups, this comes at the cost of profitability, case in question BharatPe, among many other market-capturing companies. The path needed may be different, but it is achievable, for the country to project its prowess.

Rather than being a unicorn and acquiring market share, a welcome change in direction would be to grow profitable, raise a nominal seed of funding to expand, and then focus on sustained growth, month on month.

That's all for today folks!

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I'll catch you next week.