'Fastest-growing' India is the best place for new businesses: Infosys co-founder Kris Gopalakrishnan

By India Today Business DeskInfosys co-founder Kris Gopalakrishnan said the recent slump in India’s startup ecosystem is nothing to be worried about as it is temporary, adding that the entire world is going through an economic slowdown.

Gopalakrishnan added that he remains “bullish” on India’s startup ecosystem over the medium-to-long term.

The 68-year-old billionaire businessman was speaking at the India Today Conclave South 2023 during a session titled ‘India’s start-up ecosystemThe success and the challenges’.

Follow India Today Conclave South 2023 Live Updates

“To me it’s temporary. I am very very bullish on India’s startup ecosystem over the medium to long term. India is the best place for a new business because this is going to be the fastest-growing economy in the world,” he said.

“We will go from $3.5 trillion to $20 trillion, maybe even $40 trillion, which means that lots and lots of new business have to be created,” he added. “I believe India is the best place to be,” he said.

When asked about the layoffs that have impacted new-age tech companies in India and across the globe, he said, “Fortunately, the IT services industry has not had layoffs, maybe except for some people who are not performing.”

Giving further clarity on the matter, Gopalakrishnan said, “In a dynamic economy that needs to support new business creation, just like investors are taking a risk, you need to understand employees who join startups are taking a risk. Everybody who gets associated with a startup is taking a risk.”

“So, let’s say if 9 out of 10 startups are expected to fail, if you join those 9 which will fail, how can you expect the job to be there?” he questioned.

When asked why there were no failures in the initial wave of Indian startups in the mid-90s, Gopalakrishnan said there were fallouts.

“When Infosys was started, many other companies were also started. Only a few survived, like Infosys, Wipro, and TCS, but we don’t talk about the many (startups) that failed. I don’t want to name any company, but many didn’t succeed as much as Infosys, Wipro or TCS,” he added.

While not all companies that started their journeys as startups attained the same level of success, he said these disruptions are needed. “That’s the nature of the innovation ecosystem and we need it because these are the disruptions that bring new technology to the society and these are businesses that create an acceleration and contribute to the growth of the economy.”

“India grows at 5-6 per cent and to take it to 10 per cent, you need a robust startup ecosystem because they will grow very fast,” he added.

Kris Gopalakrishnan said startups and businesses should be looking at creating an institution with a long-term value proposition and must stay relevant. “When you build a long-term institution, you have to stay relevant and you have to have a vision of how your solution is going to bring value to customers, ” he said.