<p>Even as the startup ecosystem is thriving in the country, former Infosys director T V Mohandas Pai believes that only 10 per cent of the new-age companies would be successful while a majority of these would fail.<br /><br /></p>.<p>Still, startups are set emerge as a major job creator in the country if government evolves an enabling policy environment for these budding firms, say Pai.<br /><br />Typically about 10 per cent of the startups will do very well, about 25 per cent will stay afloat, and the rest will fail, Pai told PTI.<br /><br />If Prime Minister Narendra Modi's Digital India initiative takes wings, the startup ecosystem will thrive with over 1 lakh new-age firms in next 10 years, employing 3.5 million people and targeting a value of USD 500 billion, he said.<br /><br />"Digital India is the biggest experiment that will transform India if Modi gets it right," Pai told PTI.<br /><br />"For that, most Indians should be connected with wireless devices and children in class six and above should have a tab connecting them to the Internet with 3G. If his happens, it will transform the country in the next 15 years," he said.<br /><br />Currently India has 18,000 startups valued at USD 75 billion, employing 300,000 people.<br /><br />On the back of right policies, the startups could grow over five-fold in number in the next 10 years, and will target a value of over USD 500 billion, Pai said.<br /><br />Pai believes that about 10 per cent of the startups will do very well, about 25 per cent will stay afloat, and the rest will fail. "Once a startup fails it remains in limbo as the bankruptcy code is still underdeveloped. We can't kill companies. It takes a long time," he warned.<br /><br />He also urged the government to come up with a detailed startup policy. "We are working with various state governments, including Rajasthan, Karnataka and West Bengal, that are unveiling their own startup policies," he said.<br /><br />"I'm hoping for swift policy change like making listing requirements more favourable, and taxation issues should be be addressed," he added. Pai said he is optimistic about "startup value - not valuations".<br /><br />He pointed out that in the IT industry Indian firms were solving problems of the US and Europe, however startups can solve the problems the domestic industry.<br /><br />"Startups are solving India's problems. What India needs is 100s and thousands of problem solvers, who can add value," he said.<br /><br />"The country will be a USD 10 trillion economy by 2030, and the huge growth can be driven by entrepreneurship," Pai pointed out.<br /><br />A recent report by IT industry body Nasscom had said that India ranks third among global startup ecosystems with more than 4,200 new-age companies.<br /><br />The report said that Indian technology start-ups landscape has seen a "tremendous" growth in the emergence of innovative start-ups and creative entrepreneurs.<br /><br />"Three to four startups being born every day, and nearly five billion dollars of funding coming in 2015," it said.</p>
<p>Even as the startup ecosystem is thriving in the country, former Infosys director T V Mohandas Pai believes that only 10 per cent of the new-age companies would be successful while a majority of these would fail.<br /><br /></p>.<p>Still, startups are set emerge as a major job creator in the country if government evolves an enabling policy environment for these budding firms, say Pai.<br /><br />Typically about 10 per cent of the startups will do very well, about 25 per cent will stay afloat, and the rest will fail, Pai told PTI.<br /><br />If Prime Minister Narendra Modi's Digital India initiative takes wings, the startup ecosystem will thrive with over 1 lakh new-age firms in next 10 years, employing 3.5 million people and targeting a value of USD 500 billion, he said.<br /><br />"Digital India is the biggest experiment that will transform India if Modi gets it right," Pai told PTI.<br /><br />"For that, most Indians should be connected with wireless devices and children in class six and above should have a tab connecting them to the Internet with 3G. If his happens, it will transform the country in the next 15 years," he said.<br /><br />Currently India has 18,000 startups valued at USD 75 billion, employing 300,000 people.<br /><br />On the back of right policies, the startups could grow over five-fold in number in the next 10 years, and will target a value of over USD 500 billion, Pai said.<br /><br />Pai believes that about 10 per cent of the startups will do very well, about 25 per cent will stay afloat, and the rest will fail. "Once a startup fails it remains in limbo as the bankruptcy code is still underdeveloped. We can't kill companies. It takes a long time," he warned.<br /><br />He also urged the government to come up with a detailed startup policy. "We are working with various state governments, including Rajasthan, Karnataka and West Bengal, that are unveiling their own startup policies," he said.<br /><br />"I'm hoping for swift policy change like making listing requirements more favourable, and taxation issues should be be addressed," he added. Pai said he is optimistic about "startup value - not valuations".<br /><br />He pointed out that in the IT industry Indian firms were solving problems of the US and Europe, however startups can solve the problems the domestic industry.<br /><br />"Startups are solving India's problems. What India needs is 100s and thousands of problem solvers, who can add value," he said.<br /><br />"The country will be a USD 10 trillion economy by 2030, and the huge growth can be driven by entrepreneurship," Pai pointed out.<br /><br />A recent report by IT industry body Nasscom had said that India ranks third among global startup ecosystems with more than 4,200 new-age companies.<br /><br />The report said that Indian technology start-ups landscape has seen a "tremendous" growth in the emergence of innovative start-ups and creative entrepreneurs.<br /><br />"Three to four startups being born every day, and nearly five billion dollars of funding coming in 2015," it said.</p>