The New Economic Scrabble

Newspaper Rainbow Series     29th October 2021     Save    
QEP Pocket Notes

Context: Three acts of private (Jio), non-profit (UPI), policy intervention (GST) converged to accelerate our start-up ecosystem.

Background

  • India’s booming start up ecosystem: A unicorn was born every 10 days this year.
  • Estimates suggest India’s startup ecosystem valuation will explode from $315 billion today to $1 trillion by 2025.

Shifts in India’s ‘Start-up & Economic Fabric’ - The effect of triad

  • Private sector – Jio: The market disruption in last 5 years, Jio is responsible for 15 times more data consumption and triggered the massive shift in market dynamics.
  • Cost competitiveness: A bold and risky $35 billion bet by private company, has given public the access to internet at just 3% of cost of that of US.
  • Non-profit segment – UPI: A remarkable run by the National Payment Corporation of India, a non-profit venture that designed real-time, low-cost open architecture payment plumbing is a public good that now allows public to transfer money without hindrance.
  • Rampant digitalization: Presently, 4 billion UPI transactions a month, it is expected to rise to 1 billion transactions a day making it a pillar for presence-less, cashless and paperless but Aadhar seeded India-stack framework.
  • Policy intervention - GST: GST attacked supply chain corruptions and transmission bottlenecks while incentivizing law abiding supply and distribution chains.
  • Other supportive policies: Recent privatization of Air-India is another step of correcting India’s misclassification of private consonants as government vowels.
     

Conclusion: Our mass prosperity after independence was sabotaged by imbalance between private, non-profit and government players because economic magic needs an engine firing from all three cylinders. The triad has reinforced the three cylinders and thus India’s better scrabble days begin.

QEP Pocket Notes