<div>Even as the startup ecosystem is thriving in the country, former Infosys director T V Mohandas Pai believes that only 10 per cent of the new-age companies would be successful while a majority of these would fail.</div><div> </div><div>Still, startups are set emerge as a major job creator in the country if government evolves an enabling policy environment for these budding firms, say Pai.</div><div> </div><div>Typically about 10 per cent of the startups will do very well, about 25 per cent will stay afloat, and the rest will fail, Pai told PTI.</div><div> </div><div>If Prime Minister Narendra Modi's Digital India initiative takes wings, the startup ecosystem will thrive with over 1 lakh new-age firms in next 10 years, employing 3.5 million people and targeting a value of $500 billion, he said.</div><div> </div><div>"Digital India is the biggest experiment that will transform India if Modi gets it right," Pai told PTI.</div><div> </div><div>"For that, most Indians should be connected with wireless devices and children in class six and above should have a tab connecting them to the Internet with 3G. If his happens, it will transform the country in the next 15 years," he said.</div><div> </div><div>Currently India has 18,000 startups valued at $75 billion, employing 300,000 people.</div><div> </div><div>On the back of right policies, the startups could grow over five-fold in number in the next 10 years, and will target a value of over USD 500 billion, Pai said.</div><div> </div><div>Pai believes that about 10 per cent of the startups will do very well, about 25 per cent will stay afloat, and the rest will fail. "Once a startup fails it remains in limbo as the bankruptcy code is still underdeveloped. We can't kill companies. It takes a long time," he warned.</div><div> </div><div>He also urged the government to come up with a detailed startup policy. "We are working with various state governments, including Rajasthan, Karnataka and West Bengal, that are unveiling their own startup policies," he said.</div><div> </div><div>"I'm hoping for swift policy change like making listing requirements more favourable, and taxation issues should be be addressed," he added.</div><div> </div><div>Pai said he is optimistic about "startup value - not valuations".</div><div> </div><div>He pointed out that in the IT industry Indian firms were solving problems of the US and Europe, however startups can solve the problems the domestic industry.</div><div> </div><div>"Startups are solving India's problems. What India needs is 100s and thousands of problem solvers, who can add value," he said.</div><div> </div><div>"The country will be a $10 trillion economy by 2030, and the huge growth can be driven by entrepreneurship," Pai pointed out.</div><div> </div><div>A recent report by IT industry body Nasscom had said that India ranks third among global startup ecosystems with more than 4,200 new-age companies.</div><div> </div><div>The report said that Indian technology start-ups landscape has seen a "tremendous" growth in the emergence of innovative start-ups and creative entrepreneurs.</div><div> </div><div>"Three to four startups being born every day, and nearly $5 billion of funding coming in 2015," it said.<br><br>(PTI )</div>
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