India is trying hard to get a better ranking in ease of doing business. Startupblink report of 2020 which has been tracking startups has revealed a big fall in the business scope of startups. Apart from this, India’s quantity and the quality score have been high in this report.
According to the report, compared with the 17th rank in 2019, India slipped six places to 23rd in 2020. StartupBlink uses data from startups, accelerators, and coworking spaces registered on its platforms as well as data received from global partners like Crunchbase and SimilarWeb.
Even amongst cities, as only four made the cut this year compared to the seven in the top 100 list in 2019 India took a hit. Bangalore, New Delhi, Mumbai, and Hyderabad – the top players in the Indian startup ecosystem, continue to hold 14, 15, 22, 96 spots. A Tier 2 city, Indore one new entrant ranked 419.
Three Indian cities are in the top 10 with Bangalore, New Delhi, and Mumbai ranking 3 4 and 7 respectively on the regional Asia Pacific level. Totally, India is represented by 38 cities in the top 1000 list.
To improve its ranking, India must focus on strengthening its top three cities and helping more of its 35 other ranked cities to grow faster the report added. StartupBlink report noted “The potential is immense and improving the business score with better regulations and infrastructure would be extremely helpful.”
Some infrastructure problems remain in the country which gravely affects entrepreneurs and their startups such as internet speed, which is low when compared to most other countries and power outages are frequent, it was noted
It was also noted that even Indian unicorns have had a tough year with down rounds and closures. The country is economically on the right path, but startups cannot focus only on the local market since the future pace economic growth is now uncertain for most developing countries the report also emphasized.
The entrepreneurs are advised to find innovative solutions that can be used globally and simultaneously by markets. The report noted “The steps of adapting technology that works and other countries important and done successfully but now it is time for India to take a global leadership role.”
India ranks 26th in the list with a score of 0.376 in terms of COVID-19 innovation. Bangalore ranks 20 in cities with 0.677 scores and New Delhi ranks 55th with 0.478 on the city level. Because of the ongoing pandemic, the chances of businesses getting back on tracks remain doubtful unless the COVID-19 vaccine is achieved and acts as a breakthrough in the short-term, which will be followed by human trials and widespread administration of the vaccine.
The latest survey by praxis Global Alliance said that 37% of the Indian startup CEO was interviewed only had 6 to 12 months of cash reserves left. The uncertainty that is widely spread in the market clubbed with the suppressing of Chinese capital inflow in the economy has resulted in all over a slowdown in the venture capital deal flow within the Indian startup ecosystem. The past months with the pandemic included stress and financial vagueness and in between this it might be tough for India to gain back this ranking