Today, the Indian entrepreneur is a force to be reckoned with: IVCA President Rajat Tandon

Furthermore, AI will propel growth, help everyday problems and startups are for India, MSME for Bharat

 Shutapa Paul, Author, Media Entrepreneur, Speaker Founder, Dharma Media Consultants, and  Rajat Tandon, President, IVCA

Widely recognized for his vital role in transforming India's entrepreneurial landscape, Rajat Tandon, President of the Indian Venture and Alternate Capital Association (IVCA), joined media entrepreneur and author Shutapa Paul on the latest episode of the “What India Needs!” podcast. 

In a candid conversation, Tandon delved into the evolving dynamics of Indian entrepreneurship, the importance of micro, small, and medium enterprises (MSMEs), and the transformative potential of emerging technologies. Drawing on his extensive experience, Tandon shared insights on how MSMEs and technological advancements are shaping India's economic future and the collaborative efforts that are needed to drive sustainable growth.

With India on track to become a US$5 trillion economy by 2026-27, it is important to understand the key drivers of this growth. The nation's startup ecosystem has seen a remarkable transformation, growing from just 340 registered startups in 2016 to over 1.4 lakhs today. This explosive growth highlights India's appeal as an investment destination and its potential to become a global economic powerhouse. 

However, the journey is not without its challenges. Addressing those issues is crucial for ensuring sustainable development and inclusive growth, especially as India's economic landscape undergoes rapid changes. The MSME sector, often described as the foundation of the Indian economy, plays an important role in job creation and innovation. Emphasising the importance of having a supportive environment for business, Tandon said, “MSMEs are the backbone of employment in India. One of the biggest challenges was that there was never a collateral-free loan available for the MSMEs. Skilled labour, regulatory process, access to the global market—these are the challenges that are there. Startups are building for India, the MSMEs are for Bharat. So both of them have to coexist.” He also spoke about the need to promote stable, long-term capital flow through private equity, venture capital, and angel capital to ensure a thriving landscape for startups and MSMEs. 

India’s MSME sector, projected to reach US$1 trillion by 2028, holds immense potential for innovation and job creation, which will be crucial for sustaining this economic momentum. However, as Paul points out, “There is a larger India out there. That growth, that entrepreneurial spirit is alive and kicking in tier-2 and tier-3 cities. But MSMEs have this problem of tech adoption, credit line access, and tapping global markets. Making them competitive would be the way forward.” MSMEs will need to integrate new technologies that improve productivity and competitiveness if they are to drive economic growth.  

A seasoned expert in the field of venture capital and private equity, Tandon has years of experience in fostering startup ecosystems. As the President of IVCA, he has been instrumental in promoting investment opportunities and supporting the growth of startups and MSMEs in India. His hands-on experience and strategic advice make him a credible voice on this subject.

Watch the episode here:

While speaking with Paul, Tandon touched upon the key sectors that are transforming the landscape, including artificial intelligence (AI). India's generative AI (genAI) startup ecosystem has expanded rapidly in recent months, growing 3.6x in the first half of 2024. The growth is broad-based and spans infrastructure, applications, and services, highlighting the increasing significance of AI in the economy. Tandon noted that AI is more than just a technological innovation; it has the potential to drive job creation and enhance human capabilities. Paul added that the future of work will rely heavily on society's ability to adapt to these technological shifts while maintaining an optimistic outlook. 

The discussion addressed the challenges faced by women entrepreneurs as well. According to the MSME Ministry’s Annual Report 2020-21, only 20% of the 63 million MSMEs in India are owned by women—calling for greater inclusivity and support for women in leadership roles. As Tandon rightly pointed out, women today are risk-takers and decision-makers.

Drawing on his own experiences, Tandon also shared useful lessons for aspiring entrepreneurs. He said that the entrepreneurial journey is filled with challenges and there are no shortcuts to success. Maintaining a positive outlook and learning from failures is crucial. Paul concurred, highlighting the importance of resilience and positivity in overcoming obstacles, noting that these qualities often define the difference between long-term success and early setbacks.

The conversation between Shutapa Paul and Rajat Tandon on the “What India Needs!” podcast is more than a trend summary; it is a roadmap for the future of Indian entrepreneurship. Tandon and Paul discuss strategic investments, the coexistence of startups and MSMEs, and the adoption of emerging technologies like AI. As India strives to become a developed nation, their insights shed light on existing opportunities and overcoming challenges to build a prosperous, inclusive economy.

Watch the episode here: https://youtu.be/lh6jyZ259ok?si=YRn4MJeKJjlgW6dQ 

Spotify: https://open.spotify.com/episode/1DIOyahFs4OHS7BCsOcifA 

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