Rethinking the start-up economy

This is a good time to give another thought to the place of start-ups in the world of finance and business

Illustration: Ajay Mohanty

Illustration: Ajay Mohanty

Ajay Shah
The excitement in the Indian start-up world is overstated. Building a genuine business is hard, and the few get-big-quick stories have had an exaggerated impact upon the imagination. The US Fed started tightening policy from February, and this has impacted risky and illiquid assets worldwide. Exchange-traded equities — worldwide and in India — have been more discerning in judging these firms.

There is a lot of optimism on start-ups. We should not overstate their role. The Indian workforce is about 400 million people. There are perhaps 10,000 start-ups, with an average of 50 employees each keeping half a million employed. Alternatively, the broad market value is about Rs 267 trillion. Each 100 firms at a market value of $1 billion add
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

First Published: Aug 21 2022 | 10:36 PM IST

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