Indian start-ups created 230,000 jobs in 2022 according to a report by financial services platform, StrideOne. The report also revealed that the total number of jobs created by start-ups grew at a compound annual growth rate (CAGR) of 78 per cent between 2017-22 and are projected to grow at a CAGR of 24 per cent in the forecast period of 2022-27.
In addition, it also highlighted that the government’s push towards creating a digital economy will further increase job penetration by 70x by 2025.
The Indian start-up ecosystem is the third largest in the world after the US and China. India has over 770,000 registered start-ups with the Department for Promotion of Industry and Internal Trade. Consisting of 108 unicorns, the combined valuation of the start-ups is over $400 billion.
Ishpreet Singh Gandhi, Founder of StrideOne, said that the growth of the ecosystem has unlocked several opportunities in various aspects such as scalability, alternate funding options, and expansion into the global market. It has also enhanced the capacity to create millions of jobs.
“This meteoric rise of start-ups has made India the third largest start-up ecosystem in the world, this has significantly impacted the Indian economy and showcases the ability to contribute approximately 4-5 per cent to the GDP of India,” he said.
While the report highlighted that the start-up ecosystem created a number of jobs in this calendar year, 2022 also saw massive layoffs being announced by start-ups and even large cap technology companies. From BYJU’s to Unacademy, OLA, OYO, and several others announced layoffs as part of “restructuring exercises” and due to “funding winter.” In addition, prominent tech giants like Amazon, Hewlett Packard, Meta, Twitter and others also laid off employees citing prevailing market conditions as the reason.
The industry has been divided on the whole lay off debate across India and the globe. Some have called it a process which is a part of the “market correction,” others have said that this is a trend the ecosystem has to be worried about.