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Time of India
4 days ago
- Business
- Time of India
Can two very different ecosystems create the same startup success? (Part 1)
Kerry is the Strategic Communications and Editorial Lead at BlueSky Thinking and a former BBC journalist. Recognised in the graduate management education arena as a leading authority on communications for the industry, Kerry has more than a decade of experience in the media. With a Bachelor's Degree in Multimedia Journalist, Kerry brings the expertise and research of business school and university faculty from across the world to BlueSky Thinking, as well as influential management thinkers and business practitioners. LESS ... MORE India and France have both emerged as dynamic hubs for technology startups, showcasing differing yet distinctive strengths. One has access to over 4 million tech professionals, and a high growth economy, helping to fuel a rapidly expanding startup ecosystem that today ranks third globally by unicorn count. The other is also a major tech startup player, which in 2024 was capable of raising €10.8 billion, accounting for 14.5% of Europe's total startup funding. When exploring the environments requires for entrepreneurship to thrive, examining France and India together offers a compelling study; while France represents a mature, infrastructure-rich ecosystem integrated into the European Union's economic and regulatory framework, India showcases rapid digital transformation and scale-driven innovation within a vast, young domestic market. Both nations are also navigating global shifts — France by attracting talent from a post-Brexit Britain and a highly competitive (and at times, cutthroat) USA, and India by leveraging much-envied economic growth and a robust IT sector to solve persistent and debilitating grassroots challenges. Together, they offer aspiring entrepreneurs valuable insights into navigating globalisation and driving sustainable growth. The Current Tech and Start-up Landscape In France, the start-up ecosystem thrives on its integration into the EU's economic framework. Henrich Greve, Professor of Entrepreneurship at INSEAD, attributes this to 'high levels of education in computer science, mathematics, and engineering,' combined with access to a common market of 450 million people and a €16 trillion GDP. Government incentives, such as tax breaks for R&D, and physical hubs like Station F—the world's largest start-up campus in Paris—amplify its appeal. France's infrastructure and geography positions it as a European gateway. Greve emphasises the 'solid infrastructure for moving information, persons, and goods,' including 13 licensed 5G operators and a high-speed rail network linking neighbouring countries. While France leans on EU integration and start-up accelerators, India bets on its homegrown tech and sheer size. Balagopal (Bala) Vissa, Professor of Entrepreneurship at INSEAD, describes it as 'vibrant and flourishing,' driven by the India Stack—a digital public infrastructure, created by the Indian government, which supports people and businesses in accessing financial services, government benefits, and online payments. The scale of human capital in India, she notes, is huge – particularly in mid-sized and smaller towns and cities in India where localised problems (from agricultural supply chains to healthcare access) inspire local solutions. India boasts over 1.4 billion people, hundreds of thousands of start-ups and now 117 unicorns, with the India Stack enabling 'start-ups to develop resource-efficient business models, and to grow faster,' says Kamini Gupta, Lecturer in International Business & Comparative Management at King's Business School, King's College London. 'The size of India's population and the economic growth of the country imply that many new people are getting added to the customer pool every year with new problems as inspiration for entrepreneurs to solve for.' Show Me the Money, Not the Red Tape! Whilst often polar opposites when it comes to operation, both India's and France's systems face similar challenges. One typical hurdle that can end up stifling innovative ideas from becoming a reality is legal constraints. 'France has some reputation for bureaucracy in starting and operating businesses, including laws that protect workers' rights more than many tech start-ups find beneficial' says INSEAD's Greve, noting that such regulatory rigidity often clashes with the naturally fast-paced, flexible nature of start-ups. India faces similar bureaucratic hurdles, compounded by its vast and fragmented regulatory landscape. Professor Vissa describes India's environment as a 'bureaucratic maze,' particularly for sectors like hardware or manufacturing: 'It is still hard to start and scale a new venture in India—particularly when the sector involves interfacing with a broad swathe of regulators, think of a factory making drones versus an IT services venture'. Gaurav Gupta, Associate Professor at NEOMA Business School, echoes this, noting that despite initiatives like Start-up India, 'there is a critical need for more streamlined compliance processes and enhanced access to capital, especially for early-stage ventures.' Another common struggle is securing funding, with France having to address with significant capital gaps relative to the U.S., while India faces limited access to early-stage funding. Jean Fabien Defaut, launched his company though INSEAD's Launchpad. He shares that while France offers incentives like Station F, 'the euro is stable, but still it does not quite compare to the strength of the dollar, and the amount of cash still that can be raised remains somewhat lower than in the US.' However, the scope for opportunity remains a compelling factor, noting that innovation in France is 'no longer an elite-driven, top-down topic,' with hubs emerging in Grenoble, Nantes, and Bordeaux. France struggles with venture capital availability compared to the US, and while post-Brexit talent migration from London has injected fresh energy, Henrich Greve notes that other European hubs are also experiencing the same benefits. France, he warns, must be mindful, as post-Brexit competition for funding and talent intensifies. Jean Fabien Defaut underscores market size limitations: 'France is small, so any start-up should consider reaching out to the entire European scene.' Similarly, India, despite its vast scale, faces challenges like cyclical funding droughts and investor caution. 'Currently, there is a sort of 'funding winter' — with valuations dropping, just like the rest of the world.' Professor Vissa continues. 'This is not necessarily a bad thing—because paying attention to unit economics from the get-go will help founders close down unviable start-ups faster & more cheaply – fail fast & fail cheap is a good mantra.' More to be said… Beyond capital and policy, entrepreneurial success hinges on developing talent, and training it to grow. How do these nations cultivate the next generation of innovators? From world-class engineering schools to government-backed incubators, the role of education in start-up success is undeniable. In the next piece, we'll explore how cultural factors, institutional support, and education shape entrepreneurial growth in both countries. Read Part 2: Can two very different ecosystems create the same startup success? Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
The Print
7 days ago
- Business
- The Print
SubscriberWrites: The global factory in waiting—what India must fix to win the supply chain race
In a fractured and recalibrating global economy, India is emerging as a promising node in restructured supply chains. From multinational boardrooms to geopolitical strategy tables, India is being cast as the next big manufacturing hub—a democratic counterweight to China, blessed with scale, youth, and ambition. But this optimism, though not misplaced, needs to be paired with institutional realism. Your Turn is a unique section from ThePrint featuring points of view from its subscribers. If you are a subscriber, have a point of view, please send it to us. If not, do subscribe here: Thank you dear subscribers, we are overwhelmed with your response. I. The Case for India: Momentum, Markets, and Manufacturing India's economic rise is underpinned by both structural advantages and global shifts. With a population of 1.4 billion, two-thirds under 35, India enjoys a demographic dividend unmatched by ageing economies in the West and East Asia. This demographic edge aligns with strong macroeconomic fundamentals: a 7.4% GDP growth in Q4 FY24 and a projected 6.5% annual average over the next five years (IMF, 2024). The success of India's digital public infrastructure—Aadhaar, UPI, and the India Stack—has further enhanced financial inclusion and governance efficacy. At the global level, India benefits from geopolitical hedging. The post-COVID 'China Plus One' strategy—driven by Western unease over supply chain overdependence and China's economic assertiveness—has redirected investment to alternate markets. A 2024 Nomura study identifies India as the biggest beneficiary of this shift, particularly in electronics, pharmaceuticals, and textiles. Apple already assembles over 14% of its iPhones in India; this figure is expected to double by 2026. Tesla, Foxconn, and Dell are also deepening their presence. India's policy push has complemented these trends. The Production Linked Incentive (PLI) scheme, with a ₹1.97 lakh crore outlay, has mobilised over ₹1.03 lakh crore in investments and created 5 lakh jobs. Export gains are visible in electronics and APIs. Trade agreements with Australia (ECTA) and UAE (CEPA), alongside ongoing FTA talks with the EU and UK, signal India's intent to integrate globally even while pursuing domestic manufacturing self-reliance. II. The Friction Beneath the Surface Despite these advances, India's manufacturing promise faces enduring structural bottlenecks. Infrastructure and High Logistics Costs India ranks 38th in the World Bank's 2023 Logistics Performance Index, lagging behind Vietnam (21st) and China (19th). Logistics costs consume 13–14% of GDP—almost double that of advanced economies. While the Gati Shakti Master Plan and Dedicated Freight Corridors aim to fix bottlenecks, execution delays persist. Port dwell times average 60 hours in India, versus just 27 in China. A Skills Mismatch in the Labour Market India's workforce is large but underprepared. Just 4.7% of the working-age population has formal vocational training (NSDC, 2023), far below global benchmarks—Germany (75%), South Korea (96%). Many Skill India centres suffer from curriculum obsolescence and industry disconnects. Without advanced skilling in AI, robotics, and precision manufacturing, India risks being reduced to low-value assembly hubs, unable to climb the value chain. Regulatory Complexity and Policy Volatility Though India improved on the now-defunct Ease of Doing Business index, on-ground regulatory fragmentation remains a barrier. Multiple clearances, state-centre coordination issues, and ad hoc policy reversals (e.g., retrospective taxes) deter long-term capital. SEZs, labour laws, and environmental norms vary across states, with limited digital harmonisation. For investors, inconsistency can be costlier than inefficiency. Import Dependence in Critical Sectors Despite ambitions of self-reliance, India remains import-reliant for key technologies—especially in semiconductors and electronics, where over 70% of components are sourced externally, mainly from China and Taiwan. Without upstream investment in R&D, supply clusters, and component ecosystems, India risks remaining a final-assembly hub rather than a full-spectrum manufacturer. The India Semiconductor Mission, while visionary, is still nascent. III. Strategic Dilemmas: Growth vs. Green, China vs. Vietnam India's industrial ambition is also challenged by its energy profile. Coal still accounts for 72% of power generation. Balancing industrial growth with its 2070 Net Zero commitment will require a massive green energy push—into renewables, grid upgrades, and storage. Moreover, India faces stiff competition. Vietnam, Indonesia, Poland, and Mexico offer logistical advantages, investor-friendly regimes, or proximity to Western markets. India must prove it is not just a backup for China, but a better long-term bet. IV. What India Must Do: The Reform Checklist To convert global attention into durable advantage, India must accelerate reforms in five areas: Reduce logistics costs to under 10% of GDP by 2030 via full Gati Shakti implementation and complete port digitisation. Modernise skilling with dynamic, industry-linked curricula—particularly in high-tech and green sectors. Streamline regulations , with single-window digital clearances and harmonised state-centre coordination. Develop domestic supply chains , especially in electronics, chemicals, and energy—backed by cluster incentives and fiscal support. Align Atmanirbhar Bharat with trade openness , ensuring that self-reliance complements rather than contradicts global integration. Conclusion: Betting on India Isn't Enough India is uniquely placed in this moment of global economic reconfiguration. But opportunity is not destiny. Being seen as an alternative is not the same as being ready. The real wager isn't just by the world on India—it is India's own bet on institutional reform, execution capacity, and inclusive modernisation. The road from promise to performance is narrow and uphill. But if India can stay the course, this could be its defining economic decade. By Pallavi Das, PhD Scholar, Department for Studies in Economics and Planning, Central University of Gujarat These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.
India Gazette
08-07-2025
- Business
- India Gazette
UPI gains global ground as transactions surge and new partnerships emerge
New Delhi [India] July 8 (ANI): Unified Payments Interface (UPI), India's flagship digital payments system, continues to reshape the country's digital economy while also emerging as a tool of diplomatic outreach and international collaboration. Beyond enabling instant P2P and P2M money transfers, the National Payments Corporation of India (NPCI) has steadily introduced new features on UPI to enhance the user experience and move beyond the commoditized space of payments. These include cross-border payments, integrations with loan and insurance services, and various other unique offerings. The growing international footprint of UPI was on display during Prime Minister Narendra Modi's recent visit to Trinidad and Tobago on July 3-4. The Ministry of External Affairs (MEA) said, 'The two countries expressed strong interest in expanding cooperation in the digital domain. Prime Minister Modi congratulated Trinidad and Tobago on becoming the first Caribbean country to adopt Unified Payments Interface (UPI), India's flagship digital payment platform.' The MEA added, 'They agreed to explore further collaboration in the implementation of India Stack solutions, including DigiLocker, e-Sign, and the Government e-Marketplace (GeM). Trinidad and Tobago requested support from India in digitization and upgradation of the system for state land registration. The leaders also underlined that digital governance and public service delivery can act as enablers of inclusive development, innovation and national competitiveness.' This diplomatic milestone follows another notable development during PM Modi's official visit to Cyprus in June 2025, where NPCI and Eurobank Cyprus reached an understanding to introduce UPI for cross-border payments between the two countries, aimed at deepening their economic engagement. Domestically, UPI usage continues to scale new heights. In June 2025 alone, the platform recorded transactions worth Rs 24,03,930 crore. The growth in UPI's adoption has been exponential, with both transaction value and volume registering YoY increases measured in multiples rather than percentages. Adding a new dimension to how market sentiment gauges' digital trends, India's largest opinion trading platform, Probo, has seen increasing trader interest in UPI-related forecasts. An event contract on Probo - as of July 8, with approximately 3,000 active traders - assigns an 80% probability that UPI transaction value will hit or exceed Rs 25,00,000 crore in July 2025. As of July 7, per the NPCI official website the UPI transaction value had reached Rs 6,60,102 crore. (ANI)
Time of India
07-07-2025
- Business
- Time of India
Fintechs must drive financial inclusion: Financial services secretary
M Nagaraju, secretary of department of financial services NEW DELHI: Fintech companies should go beyond urban markets and play a role in driving financial inclusion across the country by developing offline payment systems, voice-authorised tools, improving connectivity as well as cross-border payment capabilities, enhancing cybersecurity and integrating AI and better app safety for user convenience, a top official said on Monday. "Fintech will drive financial inclusion, which in turn is a key driver of growth and poverty alleviation," M Nagaraju, secretary of department of financial services, told a fintech summit. He highlighted role of India's Digital Public Infrastructure (DPI) such as Aadhaar , UPI, India Stack, ONDC, Digilocker, CBDC, and more as a USP which leapfrogged financial inclusion. Nagaraju emphasised critical role of fintechs in advancing financial inclusion and consumer protection. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
07-07-2025
- Business
- News18
India To Help Trinidad And Tobago Develop UPI-Like Payment Infrastructure
Last Updated: The two countries showed a strong interest in deepening their cooperation in the digital space. Trinidad and Tobago, a Caribbean nation, has taken an interest in India's ingenious developed digital payment method Unified Payment Interface (UPI). India and NPCI (National Payment Corporation of India) are supporting Trinidad and Tobago in developing a UPI-like digital payments system, which is still under implementation. The payment system in the Caribbean nation isn't live yet. Earlier, PM Narendra Modi paid an official visit to Trinidad and Tobago from July 3-4 at the invitation of Kamla Persad-Bissessar, Prime Minister of Trinidad and Tobago. PM Modi congratulated Trinidad and Tobago on becoming the first Caribbean nation to take interest in the payment technology, as per ANI report. A total of seven countries, including France, Bhutan, Mauritius, Nepal, Singapore, Sri Lanka, and UAE have adopted India's ingenious technology UPI so far. List of countries where international merchant payments are accepted at select merchant outlets: The two countries showed a strong interest in deepening their cooperation in the digital space. Both sides agreed to explore further collaboration in implementing India Stack solutions such as DigiLocker, e-Sign, and the Government e-Marketplace (GeM). Trinidad and Tobago also sought India's support in digitizing and upgrading its state land registration system. The leaders noted that digital governance and public service delivery have the potential to drive inclusive development, foster innovation, and enhance national competitiveness, according to a statement from the Ministry of External Affairs. In pursuance of NPCI Board & RBI approval, NPCI International Payments Limited (NIPL) has been incorporated on April 3, 2020 as a wholly owned subsidiary of National Payments Corporation of India (NPCI). NIPL is devoted for deployment of RuPay (domestic card scheme) and UPI (mobile payment solution) outside of India. NIPL is focused on transforming payments across the globe with use of technology and innovation. NPCI also has RuPay, the first-of-its-kind domestic Card payment network of India, with wide acceptance at ATMs, POS devices and e-commerce websites. RuPay has launched various card variants catering to the different segments of the society. The name, derived from the words 'Rupee and 'Payment', emphasizes that it is India's very own initiative for Card payments.
