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What is a START-UP?
A startup is a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market. By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their friends and families

Main Roles of    Startups to increase economic growth

Startups will creates more jobs

Yes. If you are going to become an entrepreneur then you can create more jobs. Thus the rate of unemployment in our nation also decreases. So employment creation is one of the main advantage from startups.

Creation of wealth

Since entrepreneurs are attracting investors by investing their own resources, the people of the nation would get benefit when startups grow. Since the money is sharing with the society, wealth is creating within the nation.

Better standard of living

Startups can implement innovations and technologies to improve the living of people. There are many startups who is working for rural areas to develop the community.

Increase in GDP

GDP(Gross Domestic Products) plays a vital role in enhancing the economic growth of a country.  World Bank says that India will become the fastest growing country as economic growth in the world. By supporting and encouraging more startups, it is possible to generate more revenue domestically and consumer’s capital will also flow around the Indian economy.
Views of Honorable MRS. SITARAMAN on STARTUPS IN INDIA
https://youtu.be/gXFTJ8TfA1g

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2. Fiscal and monetary policies:- The Government has implemented a judicious mix of fiscal and monetary policies to mitigate the negative impact of COVID-19 on the economy. On May 12 2020, Government announced the Aatma Nirbhar Bharat Package (ANBP), a special economic and comprehensive package of Rs 20 lakh crores - equivalent to 10 per cent of India’s GDP with an aim to encourage business, attract investments and strengthen the resolve for ‘Make in India’. This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs in a written reply to a question in Rajya Sabha today.
https://pib.gov.in/PressReleasePage.aspx?PRID=1656925

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1. Encourage long-term change in behavior:-  The current crisis has changed patterns of consumption. Electricity usage patterns have shifted as people are working from home on more flexible schedules. Non-essential purchases have temporarily ceased. All these offer an opportunity for implementing demand-side solutions to drive long-term behavior changes for more development.

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5. Invest in MSME's:-

Micro,Small and Medium enterprises play an important role in boosting economy. India is suffering from lack of capital and has abundant labour. Thus it soaks the excess labour and also shows locational flexibilty.

The Micro, Small and Medium Enterprises (MSMEs) form the backbone of India’s economy. This sector contributes to a whopping 30 percent of India’s GDP, and employs an estimated 28 percent of the labour force, supporting livelihoods of over 100 million people. Estimates suggest that the sector created around 13.5 million to 14.9 million new jobs per annum between 2015 and 2019.  The need to prioritise the MSME sector’s survival and revival cannot, therefore, be underlined enough. However, this needs a concerted effort from the government and the businesses to be able to survive and revive post the crisis.

Read more at: https://yourstory.com/smbstory/covid-19-crisis-indian-economy-msmes

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IMPACTS OF COVID-19 ON INDIAN ECONOMY

PROBLEMS UNDER GLANCE:

1. By 13 September 2020 economic activity was nearly back to pre-lockdown. Unemployment rose from 6.7% on 15 March to 26% on 19 April and then back down to pre-lockdown levels by mid-June. During the lockdown, an estimated 14 crore (1.4 million) people lost employment while salaries were cut for many others. More than 45% of households across the nation have reported an income drop as compared to the previous year. For more details visit https://en.m.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_India#cite_note-:35-5

2. Young startups have been impacted as fundinghas fallen. Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials.

3.According to a report published by Bloomberg in July, the Reserve Bank of India’s efforts to keep a lid on borrowing costs in Asia’s third-largest economy created excess cash in the banking system. Sponging away the extra money isn’t going to be easy. High liquidity crises in India with low demands is increasing chances of Inflammatory Spiral

4. On one hand where India is facing problem of excess liquidity the business are still facing problem of deficit finance supply. This is happening because the outbreak has increased uncertainty in business environment many folds and investors want to be sure of recovering their funds.

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3.Increasing Investment in PRIVATE SECTOR :-
Make people Invest more in share market. To fix the economy, people and financial institutions  should buy shares in heavy amount , so that amount of money increase in the market which can be further used for supporting these companies which are on the verge of closing due to complete lockdown.

ROLE OF PRIVATE SECTOR IN ECONOMIC GROWTH OF INDIA:

1. Private investments by the corporate sector are critical to higher growth rates and economic development. More investment creates a multiplier effect in the economy by generating both direct and indirect employment, boosting consumption and fostering further development.

2.Private enterprises are the chief agents in creating employment, providing funds, building competitiveness and driving innovation - all essential instruments for growth.

3. The private sector, in particular, takes entrepreneurial risks, which is central to how it translates investments into wealth creation and income generation. This role takes on further significance in the current context, as rising uncertainties in a rapidly changing global landscape cause economic growth concerns, particularly for emerging nations.

4. Share in Creating skilled workforce:
The private sector has strong links to higher investments in education and vocational training to bridge skill gaps in the economy, facilitating skills and training programmes, creating partnerships with educational institutes and experts and, most importantly, creating a future-ready and talented workforce. India has more than 900 universities and 39,000 colleges of which 78% are privately managed. In addition, most large, private enterprises have created in-house training and skills programmes to help build the capacities of young workers in line with industry needs.