{"id":10844,"date":"2023-01-16T17:06:49","date_gmt":"2023-01-16T11:36:49","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=10844"},"modified":"2023-05-30T17:58:25","modified_gmt":"2023-05-30T12:28:25","slug":"startup-day","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/","title":{"rendered":"8 Ways Startups Help the Indian Economy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e2cbe30b378\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e2cbe30b378\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#8_Ways_Startups_Help_the_Indian_Economy\" >8 Ways Startups Help the Indian Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Job_Creation\" >Job Creation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Innovation\" >Innovation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Competition\" >Competition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Better_Quality_of_Life\" >Better Quality of Life<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Improved_Work_Culture\" >Improved Work Culture\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Social_Contribution\" >Social Contribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Wealth_Creation\" >Wealth Creation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/startup-day\/#Self-sustainability\" >Self-sustainability<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"8_Ways_Startups_Help_the_Indian_Economy\"><\/span><b>8 Ways Startups Help the Indian Economy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<blockquote><p><i><span style=\"font-weight: 400;\">\u201cI skate to where the puck is going to be, not where it has been.\u201d\u00a0 <\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">\u2013Wayne Gretzy, Hockey Star<\/span><\/i><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Moneymaking is the backbone of any economy. When people make money, they spend money on other people\u2019s businesses and those people make money and then <\/span><i><span style=\"font-weight: 400;\">they <\/span><\/i><span style=\"font-weight: 400;\">spend money, and the Earth continues to go around.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of all the economies in the world, the Indian economy is expected to be the fastest-growing one \u2013 and startups are expected to contribute a whopping 5% to the GDP of our country in the next 5 years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is no small feat. The GDP of India last year was $3.469 trillion \u2013 5% of that is 173,450,000,000, or $173.45 billion. So many zeroes!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But startups bring more to the table than just money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a minute or two on National Startup Day and appreciate how much startups really help us.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Job_Creation\"><\/span><b>Job Creation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Last year, Rajya Sabha member Ram Shakal asked a very important question to P<a href=\"https:\/\/timesofindia.indiatimes.com\/business\/startups\/companies\/govt-taking-significant-steps-to-boost-startup-ecosystem-piyush-goyal\/articleshow\/89039652.cms\" rel=\"nofollow noopener\" target=\"_blank\">iyush Goyal<\/a>, the Union Minister of Commerce and Industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The question?\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">What good are startups for the Indian economy?<\/span><\/i><span style=\"font-weight: 400;\"> Do they contribute to areas like rapidly increasing urbanization, smart mobility, digitization of rural areas, and healthcare?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Piyush Goyal had so much to say that he wrote a 7-page long reply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In his reply, he said that Indian startups were responsible for creating more than 7 lakh jobs in the country in just the past year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups in fields like IT, Life Sciences, Professional Services, and Food and Beverages were not only providing employment opportunities in metropolitan cities but in rural areas as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employment rate is one of the most important metrics to gauge the health of an economy. Higher rates of employment means the citizens of a country are healthy, educated, and willing to contribute positively.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India has the biggest population of people in the working age bracket in the world.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means that out of our entire population, a huge number are young, literate, and able-bodied. The working-age population in America is 128.58 million, compared to India\u2019s 900 million!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is in stark contrast to countries like China, Japan, and America \u2013 where most of the population is aged and elderly and unable to contribute to the economy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India has immense potential, and startups are helping realize our potential.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Swiggy is the single best example of how startups create jobs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Anybody with a driving license can sign up with Swiggy to become a delivery executive as a source of income \u2013 no other qualifications or skills required!\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Innovation\"><\/span><b>Innovation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before Ola, hailing an auto or a cab was an inconvenient thing that you had to plan for and incorporate into your daily plan. But now with Ola, and then Uber, getting a ride is a no-brainer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups bring new, fresh and innovative ideas to the market. These are called disruptions \u2013 ideas that completely change the way people do things.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PayTM is another example of a disruptive startup that innovated the way people make payments. Online payment today is synonymous with PayTM, and for good reason.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are so many examples of startups that innovated their fields \u2013 Yulu, 1MG, and Flipkart.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But why is innovation important for an economy?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Innovating the way we do things leads to more productivity, which eventually leads to economic growth. Let\u2019s take the example of Magicbricks to better understand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Magicbricks is an online platform for homeowners, tenants, and potential buyers to connect. Homeowners and landlords post their property, and tenants and potential buyers can search for their preferred property and connect with the owners.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before Magicbricks, if you wanted to rent a house in a new city, you would have had to walk around, street by street, looking for TO-LET signboards, or rely on word of mouth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It would have taken you weeks, if not months, to finally find a place.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But with Magicbricks, you can input your preferences, contact the owners, get pictures of the property and make a payment for the house \u2013 all in one single day.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Magicbricks brought innovation to the real estate industry \u2013 but most importantly, it saves time and effort for thousands of people every day.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means that people spend less time searching for houses, and more time doing productive things!<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Competition\"><\/span><b>Competition<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A few decades ago, most industries were dominated by a few companies that were so big nobody could touch them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, the situation is vastly different.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All industries are fair game \u2013 anybody with a good enough idea and passion can take on any big company, and that is the beauty of starting up.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even industries like space travel and healthcare, which were previously seen as high-capital businesses that could only be taken on by big players, have been tackled by startups.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One example is Orange Healthcare. Getting quick, reliable diagnostic tests done was the number one need of the hour in the COVID pandemic, and startups delivered.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Orange Healthcare offers diagnostic test sample collection within 60 minutes of ordering, and test results much faster than the industry norm.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This kind of innovation is important because it motivates legacy businesses to do better. When Orange Health offers 60-minute sample pick-up, other healthcare businesses are motivated to also start offering faster pick-ups and result delivery.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Competition is a very important dimension of a healthy economy. Competition helps bring the best quality goods and services at the lowest prices possible.\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Better_Quality_of_Life\"><\/span><b>Better Quality of Life<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There is no doubt that startups have made our lives easier\u2026 and better. Ordering food, hailing a cab, and checking if your cough is COVID or not is so easy we hardly think about how life was before these startups changed our lives.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cult Fit is one such startup. Cult Fit made fitness accessible to everyone \u2013 regardless of where they live or what kind of exercise they enjoy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups change the lives of not just its customers, but also its employees, founders, and investors.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Improved_Work_Culture\"><\/span><b>Improved Work Culture\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The term \u201cstartup culture\u201d brings to mind flexible work timings, casual dress codes, and an approachable, easygoing work dynamic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compared to the stiff, suffocating culture of the pre-startup economy, being able to call your boss by name seems like a breath of fresh air!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups also introduced the idea of unlimited vacation days and employee perks like gym memberships, culture-building activities like off-sites, and more.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gone are the days of reaching work at sharp 9 a.m., and logging out at sharp 6 p.m. Startup employees enjoy the luxury of going to work whenever they want, and leaving as soon as they like (as long as they get the work done, of course!).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups allow their employees to embrace and exhibit creativity in the workplace. It also gives room for immense career growth and skill-building. This is great for freshers or newly graduated college students.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This kind of improved in-office experience has pushed older, more traditional businesses to also do better.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">National Startup Day is a good time to appreciate the good things startups have brought to not just work culture but the corporate rat-race in general.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Social_Contribution\"><\/span><b>Social Contribution<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Wherever a startup chooses to set up its base of operations, that place is likely to experience a sudden boom in growth. This is because there is an entire micro-economy set up around each startup.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best example of this is the city of Bangalore.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bangalore twenty years ago was a sleepy city that was best known for its gardens and cool climate. Today, it is the IT capital of the country, with thousands of businesses being run out of its techparks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When a business starts up in a small town or village, it brings money and growth to that place. With money and growth come more businesses, and more money and growth \u2013 the cycle feeds itself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By creating jobs, startups also help people make money for themselves and their families.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wealth_Creation\"><\/span><b>Wealth Creation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Investments in startups have been going up and up for the past few years. Despite the fact that we are currently in a funding winter, there are huge amounts of money being invested into India\u2019s startups.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Where does all this money go?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups spend money on hiring talent, starting and sustaining operations, renting commercial property, and more. Every single rupee spent by a startup goes into the pockets of others.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even failed startups contribute significantly to their local economies!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take the example of a small online bakery that ships cookies and baked goods to its customers around India.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This bakery sources its flour, sugar, butter, and other raw materials from local suppliers every month. These local suppliers are able to make good money by supplying to the bakery.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In turn, the local suppliers can spend the money they earned on hiring more employees so they can produce more flour and sugar!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These new employees now have a source of income that they can spend on\u2026 baked goods, from the bakery!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is how startups generate wealth \u2013 it is a sustaining, self-fulfilling loop that keeps the economy going!<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Self-sustainability\"><\/span><b>Self-sustainability<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every startup that comes up with a new, innovative idea to make life easier for the people of India takes us one step closer to a self-sustaining economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BoAt is one such startup \u2013 they make quality sound gear like earphones and speakers at cost-effective prices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By buying from BoAt and other Indian businesses, we support our economy and keep the money flowing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is also the opportunity for Indian businesses and products to reach the global market, bringing more growth to our economy.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_startup_day&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX!<\/a><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>8 Ways Startups Help the Indian Economy \u201cI skate to where the puck is going to be, not where it has been.\u201d\u00a0 \u2013Wayne Gretzy, Hockey Star Moneymaking is the backbone of any economy. When people make money, they spend money on other people\u2019s businesses and those people make money and then they spend money, and<\/p>\n","protected":false},"author":106,"featured_media":10877,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[330,405],"class_list":{"0":"post-10844","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-startup","9":"tag-startup-day"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10844"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/10877"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}