Introduction:
Do you ever wonder why most of the products sold in India and throughout the world are “Made in China”? In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices. When was the last time you purchased a product made in China? According to a study, 55% of Indians purchased “Made in China” products in the last 12 months, and gadgets top the list. You could name any product from clothes, automobiles, cosmetics, and whatnot – it's all made in China. Customers have stated they prefer Chinese products as they are cheaper, available, and more in demand. However, over the last few years, India has stepped up its game, and very soon “Made in India” will be the next “Made in China”.
Made in China and Made in India - The phrase "Made in China" indicates that a product was manufactured or produced in China. It is a label or indication of the country of origin and signifies that the product underwent manufacturing processes or assembly in China. Therefore, the “Make in India” initiative is based on four pillars identified to boost entrepreneurship in India, not only in manufacturing but also in other sectors. ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor in promoting entrepreneurship, devised to transform India into a global design and manufacturing hub.
Startup India Initiative - The Startup India initiative was launched on 16th January 2016 by the Hon’ble Prime Minister. The Prime Minister also unveiled an Action Plan consisting of 19 Action Points that act as a guiding document for the startup initiative. Since the inception of the initiative, there are over 99,000+ startups recognized by the government of India as of May 2023, with 49% of them having a base in Tier 2 - Tier 3 cities. These startups are spread over 669 districts from 36 States and Union Territories of India. As of 31st March 2023, India is home to 108 unicorns with a total valuation of $ 340.80 Bn. Out of the total number of unicorns, 44 unicorns with a total valuation of $ 93.00 Bn were born in 2021, and 21 unicorns with a total valuation of $ 26.99 Bn were born in 2022.
Startups to Unicorns - A unicorn startup is a term used to describe a privately held startup company with a valuation of over $1 billion. The term was coined by Aileen Lee, a venture capitalist, choosing the mythical animal to represent the statistical rarity of such successful ventures. India has emerged as the 3rd largest producer of Unicorns. India is home to many startups, and Bangalore has the highest number of startups. However, compared to Chinese startups securing $837 Bn in funding between 2014 and 2022, Indian startups raised about $136 Bn. US-based startups secured $2.7 Tn in funding during the same time.
Examples of Unicorns:
- Paytm knows the art of fundraising a little better than any other Indian unicorn. Despite losing momentum in payments and commerce businesses, Vijay Shekhar Sharma comfortably raised a whopping $1 billion in a Series G round at a towering valuation of $16 billion. This was over a 45% jump from its $10.5 billion valuation in its valuation report as of September 2019. This has enabled Paytm to be India’s largest unicorn, now valued at $16 billion. This was the highest amount of funding raised by any startup in the country in the year 2018-19.
- Swiggy raised $210 million at a valuation of $1.3 billion, marking an important milestone for what has been a remarkable journey of the three entrepreneurs from different backgrounds, who built one of India’s most sought-after consumer internet firms. Swiggy’s success is part of a bigger trend in the startup ecosystem: companies that have controlled the entire value chain of customer experience have triumphed over pure marketplaces.
- Zepto has raised $200 million in a Series E round of funding at a valuation of $1.4 billion, making the online grocery company India’s first unicorn of 2023, and lifting hopes in the startup ecosystem facing a prolonged funding winter. Zepto says it delivers over 6,000 grocery products in 10 minutes through a network of delivery hubs or dark stores. Each order typically ranges between ₹400 and ₹450.
AatmaNirbharBharat Abhiyan - Self-reliance - Aatmanirbhar Bharat Abhiyan is the mission started by the Government of India on 13th May 2020, towards making India self-reliant. The Hon'ble Prime Minister, Shri Narendra Modi announced an economic package of INR 20 lakh crore as aid to support the country in the times of the pandemic. It is focused on 5 components – Economy, Infrastructure, Systems, Vibrant Demography, and Demand. The Ministry of Tribal Affairs (MoTA) has been actively pursuing the AtmaNirbhar Bharat Abhiyan by envisioning projects and policies that promote self-sustenance and are self-generating for the tribal community of India.
Conclusion - In conclusion, with the exponential growth and development rate in India, along with all the government schemes and policies, India has shown the world what it is capable of. No longer will Chinese products overflow in every market, but it will be Indian products, thanks to the Make in India, Startup India, and AatmaNirbharBharat Abhiyan.
- Beryl Sugirtham
9th Sem BBA.LLB
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