The Rise of Startups and Sustainable Development in India: An Empirical Inquest

By : Biswajit Paul , Ashish Kumar Saha

Page No: 95-107

Abstract:
Over the last three decades, India has experienced remarkable economic progress. At the same time, a rapid population growth is experienced in this country. This rapid population growth enables India to have a large young workforce, which in turn fuels India’s economic expansion. On the other hand, this population boom exacerbates different socio-economic and environmental issues. It leads to poverty, inequality, puts strain on resources, places a burden on essential services and infrastructures like healthcare, education, sanitation, stimulates employment pressure, etc. Employing this huge young population is not possible through the traditional Indian agricultural sector. Hence, to address prevailing issues that arise with population growth and employ the huge young population, India needs to establish industries and transition towards a manufacturing and service-driven economy. In this regard, the establishment of startups can help India make this transition successful. Further, these startups and their resulting benefits can assist India in addressing different pressing issues and achieving inclusive and sustainable development. In this context, the present study aims to deliver insights into the present status of startups in India and examines how one of the major outcomes of startups, i.e., enhancement of industrial employment, influences India’s inclusive and sustainable development. To achieve these objectives, graphical analysis and time-series econometric analysis are used in this study. It is found that the startup ecosystem flourishes remarkably in India, and these startups exert a direct impact on socio-economic development in India. These startups become a key contributor to India’s job market, technological progress, industrial development, innovation, regional equity, and women-led development. Furthermore, India’s sustainable development is also favourably influenced by one of the major outcomes of startups, i.e., industrial employment.

Authors:
Biswajit Paul, Assistant Professor, PG and Research Department of Commerce, University of Gour Banga, Malda, West Bengal, 
Ashish Kumar Sana, Professor, Department of Commerce, University of Calcutta, West Bengal, 
 

DOI: https://doi.org/10.32381/PROD.2025.66.02.01