Page 181 - CW E-Magazine (26-3-2024)

Special Report

about the power of start-ups in ushering Finance 2004-05, Reserve Bank of estimates suggesting that 25-30
in technology-driven economic prospe- India. per cent of their population will be
rity(16). The start-up investment outlook in 4. “to regulate the issue of Bank notes above 60 years by 2047 (McKinsey-
India remains positive. It is encouraging and keeping of reserves with a view FlCCI Report). By 2030, the median
that many start-ups are focused on small to securing monetary stability in age for China and the US is expected
and medium businesses, fi nancial inclu- India and generally to operate the cur- to be around 40 (World Economic
sion, access to affordable healthcare, rency and credit system of the coun- Forum).
better education and higher earnings as try to its advantage”. As amended 12. India@l00, RBI Bulletin, June 2023.
their core value proposition(17). in 2016 vide section 45Z, the objec- 13. This phenomenon was observed
tive of monetary policy was speci- in the Indian manufacturing sec-
The time is now ripe for targeted fi ed as under: “It is essential to have tor, where installation of industrial
development of start-ups in high-tech a modern monetary policy frame- robots increased by 54 per cent in
domains such as quantum computing, work to meet the challenge of an 2021.
small modular reactors (SMR), AI-based increasingly complex economy; the 14. A Report by Google, Temasek and
defence equipment, biotechnology, rare primary objective of the monetary Bain & Company, titled ‘e-Conomy
earths extraction, battery technology, policy is to maintain price stability India 2023: The economy of a bil-
oceanography and space exploration. while keeping in mind the objective lion connected Indians’, June 2023.
The start-up ecosystem that encompasses of growth; and the monetary policy 15. Measures include Account Aggre-
these sectors needs to be promoted to framework in India shall be operated gator guidelines in 2016; regu-
hasten the progress of the country. by the Reserve Bank of India”. lations for Peer-to-Peer (P2P)
5. Overall, liquidity enhancing meas- lending in 2017; the launch of the
CONCLUDING OBSERVATIONS ures worth <17.2-trillion or 8.7% Regulatory Sandbox framework to
Let me now conclude by saying that of GDP were announced during encourage responsible innovation
as India’s growth narrative changes from February 2020 to March 2022. in 2019; the establishment of the
caution and watchfulness to optimism 6. The cumulative south-west rainfall RBI Innovation Hub in 2021; and
and exuberance, it is now India’s time was 7 percent below normal as on the pilot of the central bank digital
to make a mark in the emerging global August 21, 2023. currency (e-Rupee) in 2022.
economic landscape. A recent media 7. Pathak H, Mishra JP and Mohapatra 16. Today, India has the third largest start-
article aptly captures India’s potential in T (2022). Indian Agriculture after up ecosystem in the world (https://
an article titled: “The global economy Independence. Indian Council of pib.gov.in/PressReleasePage.
needs a new powerhouse. India is Agricultural Research (ICAR), New aspx?PRID= 1913106) and is home
stepping up”(18). The need of the hour Delhi. to more than 99,000 recognised
is to make concerted efforts in the areas 8. Recent Government policy meas- start0ups (https: //www.startupindia.
outlined in my speech today and also a ures like the “Make in India” gov.in/ accessed on July 22, 2023).
few other areas to lay the foundations of campaign, the Production Linked India’s tech start-ups raised US$18.2-
this new powerhouse – India – which is Incentive Scheme, reduction in cor- billion in CY2022 (India Tech Start-
destined to grow in size, confi dence and porate taxes, improvement in Ease of up Landscape Report 2022, NASS-
inclusiveness. Doing Business, reforms in FDI policy, COM and Zinnov), and India added
measures to boost domestic manu- 23 unicorns to its tally this year, the
REFERENCES facturing through public procure- second highest only after the US.
1. The Bombay Club refers to a group ment orders, and phased manufac- 17. India Tech Start-up Landscape
of Indian businessmen who got turing programme (PMP) are timely Report 2022, NASSCOM and Zinnov.
together after the 1991 structural and are making an impactful contri- 18. https://www.bloomberg.com/news/
reforms for protection from foreign bution to the manufacturing sector. features/2023-01-23/india-s-1-4-bil-
competition and argued for a level 9. GCCs provide IT support, account- lion-population-couldbecome-
playing fi eld vis-a-vis the foreigners. ing services, legal services, business world-economy-s-new-growth-
(Business Standard, 2013). consultancy, operations, capacity engine#.xj4y7vzkg.
2. Michael D. Bordo (2007), “A Brief development and research.
History of Central Banks”, Federal 10. Organisation o/Economic Coopera- [Annual (29th) Lalit Doshi Memorial
Reserve Bank of Cleveland, December. tion and Development (OECD). Lecture arranged by Lalit Doshi Memo-
3. “The Evolution of Central Banking 11. In contrast, developed economies rial Foundation at Mumbai on 23rd August,
in India”, Report on Currency and are experiencing rapid aging, with 2023.]

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