Why India is the fastest growing tech hub in the world

Technology companies in India have driven growth, created jobs, increased access to resources, education and healthcare, resulting in falling poverty levels and improved lifestyles.

According to a report by NASSCOM, India was ranked the 3rd largest startup ecosystem with more than a 100 accelerators, 200 active angels, 150 VCs and over 4,200 startups operating in the region. The nation is on the forefront of innovation, technology and entrepreneurship, and 2015 was quite the year for the Indian startup ecosystem. Here is a snapshot of the activities that took place over the past year with some insights on how it has evolved, and will continue to evolve.

Photo credit: Meena Kadri.

Increasing connectivity and consumer purchasing power

With over 300 million people having access to the internet, India is now the second most connected nation in the world (after China). The country spent 169 minutes per day on their smartphones in 2015. The influx of low cost smartphones and laptops, coupled with relatively low cost mobile plans have empowered people across the country to connect, especially in rural India.

Although we expect this to rise over time, the country still has some way to go in terms of mobile penetration, with only 23 out of every 100 people on mobile.

Consumer spending has also been on the rise over the years, and is set to hit 3.5 trillion by 2020 driven by increased access, convenience, connectivity, higher incomes and employment.

Source: Trading Economics

Research conducted by KKR shows how income levels have changed over the years, reflecting a growing, more developed economy with increased purchasing power.

Source: KKR

Home to a young, vibrant startup scene

The country is home to some of the youngest entrepreneurs in the world, with the average age of founders at a mere 28 years. The ecosystem has seen a rising number of successful startups being churned out and exits taking place, showing signs of a maturing ecosystem. This has lead to an increase in high quality entrepreneurs, mentors  and investors with past experience helping build and accelerate new businesses.

However, less than 10% of all Indian startup entrepreneurs and engineers are female and the numbers are even more alarming in the venture scene.  Doug Leone from Sequoia Capital points out that “we are missing out on a point of view that represents half the population, so it is in our interest to have that point of view.”

This trend is consistent worldwide and a survey conducted by Stack Overflow in early 2015 revealed that 92% of engineers across the world were male.

Increasing amounts of investments and mergers & acquisitions

Opportunities and future trends