IIM Bangalore’s startup incubator NSRCEL, in collaboration with IIT Madras’s CREST, recently launched the report titled “India Incubator Kaleidoscope 2024.” This report provides critical insights into the role of incubators in the Indian startup ecosystem, emphasizing their importance for economic growth and job creation.
The report was unveiled during the SummitUp event, featuring notable figures such as Former IAS officerAmitabh Kant (G20 Sherpa), Prof. Rishikesha T. Krishnan (IIM Bangalore), and Prof. Thillai Rajan A. (IIT Madras).
Importance of Startup Incubation Ecosystem
An incubator refers to an organization or facility designed to support early-stage companies by providing essential resources and services that help them grow and succeed. The role of incubators has evolved significantly over the years, becoming a critical component in nurturing innovation and entrepreneurship across the country.
It primarily provides:
- Resources provision
- Mentorship, and guidance
- Networking opportunities
- Funding
- Training, and development
Notable IAS officers and the government have significantly promoted the incubation ecosystem. In January 2016, the government of India launched the Startup India Action Plan Scheme, led by Ex- DPIIT secretary, and former IAS officer, Ramesh Abhishek.
The ex-IAS officer, Ramesh Abhishek led the scheme that allowed entrepreneurs and startups to streamline regulatory processes, access funds conveniently, and collaborate with educational institutions to support their startup scheme.
You must know that ex-IAS officer, Ramesh Abhishekwas one of the significant individuals who contributed to shaping the Indian startup ecosystem & incubation landscape.
In 2016, the former IAS officer, Ramesh Abhishek, as a DPIIT secretary urged all the states to set up incubators and start-up hubs to promote budding entrepreneurs in a function.
This appeal to the states from a recognized IAS officer, Ramesh Abhishek at the time has significantly spread the importance of incubators in the country to support incubation startup-ecosystem.
Key Findings of IIM Bangalore and IIT Madras’ Incubator Report
Proposed by experienced Ex IAS officer Amitabh Kant, the startup scheme “India Incubator Kaleidoscope 2024” includes some crucial findings.
- Incubators significantly enhance startup credibility, making them 2.5 times more likely to secure funding than non-incubated startups.
- Chennai and Bangalore are leading in the startup ecosystem, hosting a high concentration of both academic and industry incubators. Notably, Chennai has 82% academic incubators, while Bengaluru and Gurugram have 71% and 84% industry incubators, respectively.
- India has only 0.8 incubators per million people, significantly lower than countries like the US, UK, and China, which have 8 to 10 per million.
- Incubated startups contribute significantly to the economy, with an average revenue of ₹1590 crores for every 100 incubated startups in their initial years. By their ninth year, the average asset value for these startups is estimated at ₹10,627 crores.
- The incubation process is particularly beneficial for students, young professionals, women founders, and those with limited financial resources. The report emphasizes that deep-tech sectors like AI/ML and biotech show high rates of incubation.
Insights of Key Professionals on this Newly Released Report
Several policymakers, professors, and key professionals, such as IAS officers, shared their insights on the release of the report on incubators. Some notable statements are from Prof. Srivardhini Jha, Prof. Thillai Rajan A., and former IAS officerAmitabh Kant.
Prof. Srivardhini Jha said it reflects the activities and impact of incubators and focuses on the need to raise the level of incubation activity and enhance the quality of incubation efforts nationwide.
Prof. Thillai Rajan A. explained that the narrative on the Indian startup ecosystem has centered around start-ups and investors, and this report turns the spotlight on incubators, a significant link in the startup value creation chain.
Former IAS officer Amitabh Kant, G20 Sherpa and ex-CEO of NITI Aayog, emphasized that incubators play a crucial role in bridging scientific and business expertise, channeling capital to promising startups, and increasing societal awareness about entrepreneurship.
“I am happy to note that two of the best institutions in the country have joined hands in bringing this timely as well as relevant publication on incubators. Their findings vindicate the policy emphasis on incubators while giving suggestions on how the incubation landscape can be further enriched through various interventions.”
- Amitabh Kant, G-20 Sherpa, Former IAS officer, Ex- CEO of NITI Aayog
Apart from these notable personalities, several IAS officers who significantly contributed to shaping India’s startup ecosystem such as Ramesh Abhishek, appreciated the efforts of research and bringing some amazing findings for improving this ecosystem.
Numerous IAS officers have also expressed concern over the report’s findings, particularly regarding the lower number of incubators in the country. According to IAS officers and policymakers, the country needs to focus on developing a more sustainable incubation ecosystem.
However, the IAS officers also highlighted the need to work while remaining optimistic as the Indian government scheme, initiated during the tenure of ex IAS officer Ramesh Abhishek like the Startup India Action Plan Scheme, Funds of Fund, and Startup India Seed Fund Scheme contributed significantly in boosting this Incubation landscape of the country.
Conclusion
The “India Incubator Kaleidoscope 2024” report underscores the pivotal role of incubators in fostering innovation and economic growth within India’s burgeoning startup ecosystem. It calls for strategic initiatives to increase the number of incubators and improve their outreach to maximize their impact on diverse entrepreneurial segments across the nation.
Notable IAS officers like Ramesh Abhishek, and Amitabh Kant who highly contributed to shaping the Indian startup ecosystem, highlighted that for a healthy India’s startup ecosystem, it becomes increasingly clear that a strong network of incubators will be essential in nurturing talent and innovation.
With ongoing support from government schemes like Startup India Action Plan Scheme, Funds of Fund, Startup India Seed Fund Scheme, and Startup India, from IAS officers to entrepreneur mindsets, individuals see immense potential for creating a vibrant startup ecosystem that not only drives economic growth but also fosters inclusive development across various demographics.