While startups in India have achieved notable success in fostering entrepreneurship and innovation in the economy, there are certain structural issues challenging the sustainability of startups in India. Elucidate upon these challenges faced by startups and recommend practical solutions to the problems.

SC, ST Entrepreneurs - New attitude @ college students

• Startups & Innovation
  • Agri: PPP with govt
  • Space: Skyroot (1st 3D printed rocket)
  • Health: The dialysis project, etc

Thus, startups have led to overall contribution to economy, along with employment generation.

Structural Issues → Hurting sustainability

(1) scalability → capability issues in expansion due to cost, etc.

(2) lack of trained workforce India skill Report: ~ 50.3% Graduates only are employable

(3) Infrastructural bottlenecks Ex: Erratic power supply Lack of multi modal Infra

(4) Compliance & Regulatory labyrinth ex: more permissions req. to start business than own gun (E.Survey 2020)

(5) Policy uncertainty Ex: Angel tax controversy

(6) Financial Irregularities Ex: BYJUS misappropriation & mismanagement

Required Interventions:

1. Infra boost → Gati shakti, DISCOM Reforms, etc.

2. Easier compliance → minimal paperwork, Single window clearance

3. Policy Certainty Recommended by Ahluwalia committee → give predictable policy responses

4. Incentives → to promote more jobs (Ex: Employment linked Incentive)

5. Institutional support