India's innovation ecosystem poised for exponential growth: Industry

India's innovation ecosystem is poised for exponential growth, driven by robust government policies, increased venture capital and a dynamic talent pool, industry experts said on Saturday.

The country is likely to have at least 152 unicorns (with a valuation of $1 billion and above) over the next 3 to 5 years. The number of unicorns in the country increased from four in 2015 to more than 100 in 2024, with more than 1.25 lakh startups.

Prime Minister Narendra Modi has reiterated that the government is committed to providing a conducive environment for startups to flourish, especially from the tier-2 and 3 cities.

“To cultivate more unicorns, India must prioritise substantial investments in research and development, enhancing digital infrastructure, and fostering a startup-friendly regulatory environment,” said Jitendra Patil, Managing Director of Pune-based energy-tech startup ARENQ.

Additionally, streamlining bureaucratic processes and providing tax incentives can further stimulate entrepreneurial ventures.

“The future is bright for Indian startups, and with the right support, we can unlock unprecedented opportunities and create a thriving ecosystem for unicorns to flourish,” said Patil.

Every state will soon have multiple startups and unicorns with amazing business models and innovation.

According to Ritesh Malik, founder of Innov8 and a serial investor, in the next five years, India's ecosystem, ease of doing business, Startup India and Make in India missions will keep on growing the economy of the country.

"India will continue its strong and resilient growth because of renewed capex, well-capitalised banking system, robust credit growth and digital-driven productivity gains" added Dr Manoranjan Sharma, Chief Economist, Infomerics Ratings.