There’s a word of caution for budding entrepreneurs who want to jump in the start-up bandwagon. None other than TV Mohandas Pai, former Director, Infosys, has forecast that only 10 percent of the new-age companies would be successful, 25 percent will stay afloat, and the rest will fail.
He said he believed that of these start-ups about 10 percent will do very well, about 25 percent will stay afloat, and the rest will fail. “Once a start-up fails it remains in limbo as the bankruptcy code is still underdeveloped. We can’t kill companies. It takes a long time,” he told PTI.
Currently India has 18,000 start-ups valued at $75 billion, employing 300,000 people. On the back of right policies, the start-ups could grow over five-fold in number in the next 10 years, and will target a value of over $500 billion, Pai said.
If Prime Minister Narendra Modi’s Digital India initiative takes wings, the start-up ecosystem will thrive with over 1 lakh new-age firms in next 10 years, employing 3.5 million people and targeting a value of $500 billion, Pai said.
Stressing on the urgent need for a detailed start-up policy, he said, “We are working with various state governments, including Rajasthan, Karnataka and West Bengal that are unveiling their own start-up policies. I am hoping for swift policy change like making listing requirements more favorable and addressing taxation issues.”