Then, there is the very praised “demographic dividend”, a term used to underline the advantage of India. But it is a short -term asset that only works in an opportunity window. India is expected to undergo a demographic transition over the next 16 to 36 years. Consequently, India’s meeting to become a developed economy is limited over time.
That, beyond rhetoric, it is the century of India, is visible not only in the exuberance of capital markets – 63 IPO of main panels in India until September 2024 and 165 ipos SMEs until August 2024 – which brings Indian startups before domiciled outside India, such as Phonepe, Groww and Pepperfry, but also in the way Indian foods climb the culinary scale in the world, and adoption of the culture of India in the world via Bollywood, yoga, etc. -That is to say via its rise in power.
In addition, the support of Goi (Changes in the Company Act in 2017), the Policy Pushing (RBI regulations in 2018) and a friendly environment for investors (in terms P / E, NIFTY50 is negotiated at around 89 % of the premium to the MSCI EM index) gives invests in the confidence of a successful exit in today’s time.
As Isaac Newton said one day: “If I saw him further, it was by standing on the shoulders of the giants”. This is true for the place where India is today and where it is heading. We must recognize the efforts of several stakeholders – private and public – on this trip. The Indian dream exists in “India” and “Bharat”, and is democratized by the penetration of the Internet across the country. Although we can tap where we have reached, we must not be complacent. While indicated is based on the “ operating startup ”, startups Extaking the theoretical growth of the governments of states and central may not be the best measure, because the evaluations do not really reflect the income of the company. India has also been able to develop a solid network of national investors. An effective comparative analysis tool to assess these AIFs would be to use distributions with paid capital (DPI) on multiple on invested capital (MOIC). Such a strategy will guarantee that the quality of fund managers in the ecosystem is improving and, therefore, has a multiplier effect on the quality of founders and innovations that India supports.
Startups will lead India development to a developed economy. In order for him to reach this goal, he needs:
Broad growth that generates more employment.
An educational system which is aimed at the jobs of tomorrow and helps to develop human capital. Rather than focusing on heart learning, India needs educational institutions that include “start -up projects” as part of their study program to promote innovation and improve the manufacturing sector (improving the ease of business and simplifying labor laws).
Increased ease of compliance for startups.
Standardizon laws in IFSC gifts.
Retancing the tax system via joint parliamentary committees to keep business, talent and profits in India.
Tackling them will help India increase its real income per capita by around 7.3x (from $ 2,730 today) to reach its objective of a developed economy.
The question of whether India can respond to these concerns by 2047 is questionable, because growth comparable to the miraculous rates of Singapore would require behavioral changes that today’s policy may not be ready Have fun. However, the Indian markets have a single DNA, and they should be able to break this race with its demographic dividend.
(The writer is placement director, Jafco Asia)