Thinks 334

Manish Sabharwal and Rajeev Mantri: “India’s startup ecosystem is radically breaking from its past in company valuations, unicorn numbers, funding round sizes, foreign interest, and growth. What’s going on? Historians suggest caution with origin stories — every theory just points to an earlier beginning. But we believe three acts of entrepreneurship from five years ago — Jio, UPI, and GST — have converged to accelerate our startup ecosystem. We also make the case that this triad of private, nonprofit, and government courage demonstrates the economic upsides of a better balance between the three sectors.”

Aunindyo Chakravarty: “This coming ‘boom’ will…be a bubble that will directly benefit the top 1-2% of households in India, and at best have a positive multiplier effect on the top 10%. As always, the remaining 90% will continue to barely keep their nose above water.”

Naushad Forbes on production-linked incentives (PLI) announced by the government: “The PLI scheme provides a subsidy, typically 4-6 per cent of sales, for firms in 13 sectors to make a list of “desirable” end products, components or assemblies. Various industry ministries publish lists of items to indigenise. Firms propose items they will manufacture in a green-field or brown-field facility with a specified minimum investment that varies by sector and the size of a firm. The scheme goes together with tariffs, fairly high ones, on the finished product and often on the components involved. …I still believe we would have been better off without the PLI scheme, with the Rs 2 trillion it will cost us taxpayers spent on building infrastructure and improving logistics to make all of India more competitive instead of benefiting a few firms.”

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.