The Indian Business Stories- Part 2
Startup India- Stand-up India
The heading of this post may sound like a slogan but it’s all about Startups program commenced by our government for supporting the small industries and agreeing to industrial world’s recommendations provide facilities to startups in order to speed up manufacturing sector of India.
Industrial world has been constantly requesting government to share its resources in the field of research and technical knowledge for better use technology available for rapid growth of industry in the beginning stages. Our policymakers believe that the younger generation should become self sufficient, job providers and not job seekers that will solve the problem of unemployment. Maybe it will take some time but we are moving in right direction.
The best the government could do for these was to setup schemes for these smaller units at the startup level was to fund them at the basic stage and provide help to industrialists in making. The best support these entrepreneur need to develop their business will be provided by the experts of the field under the guidance of Indian Institutes of Managements and Indian Institute of Technologies with business ideas and expert business expertise.
It was very much apparent during last couple of meetings in between Indian government and industrial world’s top players that government is ready to allocate funds under this head for providing technical support on priority basis. As far my knowledge goes the Indian government has already selected 10000 start ups so far and has begun provided them enough funds for their development.
The government has been advised to send all the proposals coming for add to be sent to concern IIT for an appropriate amount to be allocated to the start ups depending on their size and production probabilities. I tried to get the exact amount but despite my best efforts I could not find the funding amount as it’s not disclosed.
There is another infesting recommendation by chamber of commerce and industrial development committee that government should give priority to startups in its purchase policy to encourage them although government sources do not find it appropriate unless these units prove their quality. However, the government is prepared to provide them tax rebate to enable them to become competitive in the market.
Reality market- A Real boom
The Urban population of India is almost equal to what is total population of America and England combined together and adding at the rate of 12-15 million more every year. There have been 2,800 more cities added in India during last decade itself and now the total number of city count has crossed 8000. Despite such a big number of cities at least 200-300 million Indians still need a home because either they are homeless or living in poor conditions.
A home is a basic need of everyone and the growth of middle and lower middle class has increased the demand of homes in India in last couple of decades. The way the real estate sector is increasing rapidly the chances are the Indian real estate business will touch $180billion by the end of year 2020.
The men have always been eager to own a home ever since they learned about construction maybe they related owning a home with their ego satisfaction but it has become a necessity today. The real estate sector divided in 4 main categories namely, residential, hospitality, retail and commercial but the residential sector with major share of the growth story is increasing at the fastest rate at 20% per annum.
The real estate business in India is working overtime in India and the residential units are coming up so fast but still not able to keep up with the demand. The outer areas big cities and nearby villages and smaller towns are witnessing construction activities in form of high rise apartments coming up at brisk pace.
The NCR region is perhaps growing at the fastest rate in India in all four categories as highways, metro networks, stadiums, hotels, and colleges are either under construction or in the pipeline in the coming year. The real estate players like Ansal, DLF, JP, Oberoi, Unitech, Omax, Mantri Developers are some of the players in top group of Indian real estate business. Unfortunately, some of these companies are facing hard times recently due to their unreal approach and inefficiency in handling the situation.
Indian Banking Sector Going Up
Indian banking sector is in a position to reach to fifth rank in global banking industry by the year 2020 and third largest financial industry by 2025. Indian banking sector is developing at a brisk pace supported by Indian economical development, increase in personal income of the people on the whole and availability of loans is showing a constant upward progress.
If we take credit off take into account it has already reached to the tune of US$ 1090 billion for FY 2015 and it has been constantly showing upward trend in retail and corporate sectors equally. If we have to believe financial experts it is expected to reach to US$28500 billion by 2025 which if reached will not be a mean achievement.
The story of success for Indian banking industry started in 1935 with the establishment of Reserve bank of India that set the rules and guidelines for transparency in banking industry and also took the responsibility for setting monetary policies of the country with a proper control on banks, currency flow, operation and exchange of foreign currency, management of banks and control on financial rating.
The Indian banking sector saw some ups and downs after independence and a strong demand for nationalization of the banking sector was on the cards and it turned into a reality in 1969 through an ordinance. In the year 1990, government under its liberalization schemes issued licenses to certain private banks like Global Trust Bank, ICICI, HDFC and UTI.
This step provided a new life to dull banking sector under government control and gave a new dimension to Indian financial sector. It changed the relations in between banks and customers immediately and as soon the FDI limit in public and private sector banks increased to 20 and 74% respectively the entire banking scenario changed.
The Banking sector has come out of its old pattern and providing a far better service to customers by using advance banking technologies with use of modern techniques. Banks especially the private banks have set plans for adapting to more modern methods for providing better banking experience and more facilities.
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