Need to encourage start-ups for double-digit growth: NITI Aayog CEO Amitabh Kant
New Delhi : For India to consistently grow at nine to 10 per cent over a three decade period, there is a need for "technological leap-frogging" which can happen only if an ecosystem is created to promote start-ups, NITI Aayog CEO Amitabh Kant said on Saturday.
Such an ecosystem can be created only by taking risks and by acceptance of "culture of failure" by parents and institutions, he noted.
During a Facebook live interaction, the NITI Aayog CEO said that double-digit growth is possible only if India converts its young generation from job seekers to job creators.
"Large companies do not create jobs; young companies create jobs," Kant said quoting a study.
"Hence we need a huge amount of technology, innovation and disruption in India which can only come through creating an ecosystem of start-ups."
In a step to create that ecosystem, the premier government policy think-tank is going to support various universities and research institutions in installing Atal Incubation Centres (AICs) at their campuses.
These incubators are aimed at nurturing innovative start-up businesses in their pursuit to become scalable and sustainable enterprises.
The NITI Aayog CEO said that one needs to accept the fact that in their attempt to create successful start-ups, a lot of people are going to fail and the "culture of failure must be accepted by parents and institutions".
"Out of 100 people, many will fail. But some who succeed would make the major breakthrough and will be the real path-breakers," he said.
Kant said out of some 150 incubation centers in India, most are working below their performance ability.
"We found it very difficult to support existing incubators as these need to be hand-held to be taken to another level."
Kant said India needs thousands of incubation centers and not just in the field of technology but also for manufacturing, agriculture and other sectors.
"We need incubators which are able to ensure that our farmers are able to get seeds and fertilizers depending on soil and weather conditions. So we need major technological breakthroughs in social innovation, in agriculture and in manufacturing.
"My view is that we need to take the risk and support thousands and thousands of incubations. Many of them will fail. It's a risk-oriented business. But many will succeed and they will be the real path-breakers," he said.