The number of start-ups in India has grown seven-fold from around 7,000 in 2008 to around 50,000 by the end-2018, according to a report.

Consultancy firm KPMG, in its latest report on India’s start-up ecosystem, has said an explosion of the Internet, higher literacy rates and greater exposure to outside working has fuelled sector-based innovation and, hence, start-ups originating in IT, artificial intelligence, IoT, finance, healthcare, biotechnology, education, agriculture, and logistics, amongst others.

“To this effect, we are seeing the emergence of multiple start-up hubs within the country, including Mumbai, and other metropolitan cities,” KPMG said in the report.

It added that the country has witnessed significant growth in the number of start-ups in tier-II and III cities such as Jaipur, Kochi, Ahmedabad and Pune.

Of the 14,565-odd start-ups approved under the country’s ‘Start-up India’ initiative in 2018, the highest number are from Maharashtra. Globally, Mumbai was ranked seventh in terms of growth in VC deals secured in 2015–2017, as compared to the 2010–2012 period.

Pradeep Udhas, Office Managing Partner, West, KPMG in India said: “The state government is working towards implementing various initiatives designed to promote an environment of innovation and entrepreneurship in the state. This, coupled with the right infrastructure, mentoring, financial aid as well as simplification of the regulatory framework to ease compliance, would play a key role in Maharashtra emerging as the top start-up state. However, Mumbai should no longer compete with other start-up destinations in India; instead, it should compare itself with San Francisco, New York, London and Hong Kong”.

It further added that India is the third largest start-up base globally, with about 7,200 start-ups based in India.