By Vishal Sridhar
Edited by Liz Maria Kuriakose, Associate Editor, The Indian Economist
The emerging markets are slowly reviving from the ambush of the housing bubble led crisis of 2007-09. In India, the revival started off with the appointment of Raghuram Rajan as the RBI Governor in 2013. Though being a firm believer of growth, Rajan has been forced to take a tough stance against the dangerous inflation by not lowering the rates in his previous monetary policies. Manufacturing in India contracted 0.7% in the 2013-2014 fiscal years, its single biggest decline since 1991-92. All the above trepidations coupled with the issues of corruption and environment clearances have left the economy in a mess.
While the big business guns are struggling with tough scenario, ‘Aaache dine’ seems to have come to the start-ups in India. Though, not the one as promised by the Prime Minister Narendra Modi. The entrepreneurs from the top B-schools are wasting no time in setting up their own business. They are determined to establish a strong foundation and thus have slowly and steadily gone on to carve a niche over the past few years when the top guns were sluggish.
India’s diverse culture & her huge population make her a hot spot for entrepreneurs to try out new ventures. It’s no more the Silicon Valley that grooms the start-ups, but the rising global cities in India, especially Bangalore. Naveen Tewaari’s InMobi & Bansal’s Flipkart are few examples worth mentioning. The pleasant climate, IT Boom & rising cosmopolitan culture makes her a perfect platform to launch new ventures. The idea of start-ups is getting popular even in conventional cities like Chennai, Pune or a left oriented Kolkata and of course the animated city of Mumbai. These ventures are generally started by the canny guys from IIM or IIT. The Government’s initiative to expand these top institutions across the country will boost the start-up industry and will produce more Bansals and Tewaaris.
In the last placement season, start-ups and emerging firms like ZipDial, Snapdeal, Delhivery
and Housing-.com and TaxiForSure offered salaries higher than established companies at the last in the B-Schools. As reported by ET, at IIM Bangalore, established recruiters like HDFC and ICICI Banks had made offers in the region of Rs 12 lakh. While, e-commerce companies and start-ups like Jabong, Ace Creative and Stovekraft offered salaries in the range of Rs 12- 18 lakh. With Big Money comes Big Responsibility and that’s something which has inspired the smart lads to take up challenging roles in new entrants like Holidify or Pickyourtrail than in a well-established firms like McKinsey or a HUL.
Chief Minister Kalvakuntla Chandrashekar Rao is looking to do a Naidu in his newly born state of Telangana. It’s a fact that Naidu played a huge role in turning Hyderabad into a global city. The newly formed government in Telangana is interested in creating a technology development bank which will offer seed funding to start-ups in the hardware and software sectors. If implemented, it will be a huge boost to the entrepreneurs. Also the top level companies will start taking these ventures seriously and will surely find ways to use them effectively.
With the RBI promising rate cuts in the future and the announcements of huge infrastructural projects coupled with the boom in the start-up sector will do wonders for the Indian economy.
An aspiring economist, Vishal Sridhar lives in Ashok Nagar, Chennai. He will be graduating from Loyola College in 2015. Apart from Economics, Indian Politics and her history fascinate him. He’s thrilled to scrutinize the NaMo Government and her affiliation with Raghuram Rajan. An enthusiastic learner, he loves to pen down his thoughts on the various economics and political issues. He takes life as it comes and strongly believes that everything in life happens for a reason. He wishes to travel across India to experience her rich culture and traditions. He’s very keen on interacting with people and loves to exchange thoughts on various subjects. Don’t hesitate to connect with him at FB or to drop an email at [email protected]