India is the third biggest home to tech startups, following the US and the UK, a study indicates.
The study, conducted by Assocham in association with Thought Arbitrage Research Institute, also indicates that Bengaluru hosts the largest share of technology startups in the country, followed by Delhi NCR and Mumbai. Hyderabad and Chennai are also popular destinations for prospective tech entrepreneurs.
"In the technology driven startups, India has moved up to third position with the US occupying the top position with more than 47,000 and the UK with over 4,500. India's tech startups were to the tune of 4,200 up to 2015," the report states.
India also figured among the top 5 largest hosts in the world, along with China (10,000 each) in terms of the total number of startups, comprising both tech and non-tech areas. US leads with 83,000 startups.
IT hub Bengaluru is host to 26% of domestic tech startups, followed by Delhi NCR (23%) and Mumbai (17%). In the 'catching up' category were Hyderabad (8%), Chennai and Pune (6%).
"The disruptive innovation in technology and process is creating newer Indian startups and foreign investors, including some of the well-known venture capital funds, are showing immense interest in these startups," Sunil Kanoria, President, Assocham said.
The awareness that a startup is a vehicle of rapid growth through technological disruption and innovation, has to spread across the economy, the report said. Otherwise, if any small traditional business is treated as a startup, then the ecosystem will never develop properly, it added.
The study recommended that aligning 'Startup India' with 'Make in India' and 'Digital India' campaigns had the potential to expand the domestic ecosystem for new entrepreneurs.
It also suggested tax exemption for research and experimentation to encourage fresh ideas without fear of failure. Recommending a Stanford University model in various Indian universities, the Assocham-Thought Arbitrage paper said courses on creation of small businesses should be encouraged in campuses.