Finance Minister Nirmala Sitharaman tabled the Economic Survey 2021-22 in the Lok Sabha just a day before the Union Budget. Economic Survey is the Finance Ministry’s annual report card of the economy, which gives insights into how the various sectors performed and suggests the way forward. It also puts forward a GDP growth projection. Here are the key things that Economic Survey 2021-22 said about the technology sector.
Delhi replaces Bengaluru as startup capital
Delhi has replaced Bengaluru as the startup capital of India. The national capital added over 5,000 startups between April 2019 and December 2021, according to the Economic Survey 2021-22. Bengaluru added 4,514 startups during the period.
Maharashtra has highest number of recognised startups
With a total of 11,308 startups, Maharashtra has the highest number of recognised startups in the country.
India sees record number of startups reach $1 billion valuation
India witnessed a record number of startups (44) reach the unicorn status ($1 billion valuation) in 2021. The country overtook the UK to emerge as the third highest in number of unicorns after the US and China which added 487 and 301 unicorns respectively in 2021. As of January 14, 2022, India has 83 unicorns with a total valuation of $277.77 billion.
IT industry leads startup sector
According to the survey, most of India’s startups are in the IT or knowledge-based sector. Intellectual property, specifically patents are key to this knowledge-based economy.
50,000-plus patents were filed in India during the year 2020-21
There has been a gradual increase in the filing and granting of patents in India. The number of patents filed in India has gone up from 39,400 in 2010-11 to 45,444 in 2016-17 to 58,502 in 2020-21 and the patents granted in India has gone up from 7,509 to 9,847 to 28,391 during the same time period. The survey said that the number of patent applications are increasingly coming from Indian residents rather than MNCs. The share of Indian residents in total applications has increased from 20 per cent in 2010-11 to around 30 per cent in 2016-17 and 40 per cent in 2020-21.
IT services comprised 49% of total services exports in the first half of FY2022
As per the survey, computer services comprised 49% of total services exports in the first half of fiscal 2022. It reported strong growth due to increasing demand for digital support, cloud services and infrastructure modernisation owing to new pandemic challenges.
Space tech growing, but still a long way to go
The survey also highlighted the growth of space tech startups in India. The number of startups in the sector has increased from 11 in 2019 to 47 in 2021. At present, India accounts for only about 2% of the space economy, far behind the US and China. With recent policy initiatives and private sector participation, the Indian space sector should capture a larger share of the global space economy, which was close to $447 billion in 2020, they survey said.