India: In a striking shift from past trends, India’s young generation is increasingly choosing entrepreneurship over jobs in multinational corporations (MNCs), according to Reserve Bank of India (RBI) Governor Sanjay Malhotra. Speaking at the US-India Economic Forum in Washington DC, Malhotra highlighted this significant change in mindset among the country’s youth.
“Previously, securing a position in an MNC was the go-to choice for graduates. Few dared to start their own ventures,” Malhotra remarked. “Today, we’re witnessing a surge of engineering and management graduates venturing into entrepreneurship and start-ups.”
This entrepreneurial spirit has contributed to India’s robust start-up ecosystem, with approximately 150,000 recognized start-ups currently operating in the country. Government initiatives like Start-Up India, Digital India, and the Atal Innovation Mission have played crucial roles in fostering this growth.
Malhotra noted that India now boasts the world’s third-largest number of unicorns, with many emerging from cutting-edge sectors such as Artificial Intelligence, fintech, and renewable energy. The country has also made significant strides in the Global Innovation Index, climbing from 81st place in 2015 to 39th in 2024, and securing the top spot among lower-middle-income nations.
“India is rapidly transforming into a nation of job creators rather than job seekers,” Malhotra observed, emphasizing the importance of effectively utilizing the country’s vast human resources.
The RBI Governor also touched on the impact of government reforms, particularly the digitalization of various schemes. Linking the public distribution system with Aadhar has resulted in substantial savings, while the timely flow of funds to state governments has improved the Union government’s cash flow management.
Malhotra highlighted the success of initiatives like Direct Benefit Transfer (DBT), which have enhanced government spending efficiency. As of March 2023, these measures have led to savings of approximately 40 billion USD.
This shift towards entrepreneurship and the successful implementation of digital reforms underscore India’s evolving economic landscape, positioning the country for continued growth and innovation in the global market.
