In 2016, there were just under 5,000 startups in India, as per data from Statista. Since then, India has experienced a digital boom, and the startup sector fully capitalised on it — there are now more than 99,000 startups in India. Sangeeta Bavi, Executive Director — Digital Natives, Microsoft India, pegs this exponential growth to the pivotal role played by technology in fostering growth and innovation.

In an exclusive interview with CNBC-TV18, Bavi said the transformative power of entrepreneurship across diverse sectors driven by technology cannot be ignored.

"As competition intensifies, every company must build its unique digital infrastructure and IP to remain competitive. We firmly believe that technology serves as the foundation for this transformation, presenting India with an exceptional opportunity to become a global centre for innovation and talent, with startups playing a pivotal role in realising this potential," she said.

Digital natives encompass individuals from the millennial generation and subsequent generations, including Generation Z, or GenZ. This demographic has been immersed in a digital environment for the majority of their lives, surrounded by computers, digital devices, and the realm of social media — undertandably, digital natives are among the driving force behind India's dynamic startup landscape.

According to Bavi, digital natives are a crucial driver of India's economy, propelling innovation and customer-centric approaches. The rise of startups, particularly in tier 2 and 3 cities, is reshaping the nation into a hub of job creators.

AI as a force multiplier

Discussing the role of AI, Bavi expressed Microsoft's belief in its potential to catalyse transformative changes across industries.

"We see a profound impact across various sectors, ranging from banking to healthcare, manufacturing to education, and government services. Organisations are actively embracing AI integration into their operations to unlock greater efficiency, productivity, and exceptional customer experiences," Bavi said.

Bavi said she believes that AI will be at the heart of transforming industries and driving digital empowerment in India. "With Azure OpenAI, we have enabled customers to harness the power of large-scale generative AI models, while ensuring enterprise-level promises of security, reliability, compliance, data privacy, and responsible AI capabilities. Startups like MakeMyTrip, Myntra and Builder.ai are using Azure OpenAI for customer support, software development, customization, and data-driven insights," she added.

Security and trust

Addressing concerns about data security, Bavi emphasised that security and privacy are intrinsic to Microsoft's products.

"With Azure OpenAI Service, for example, startups can access cutting-edge AI models from OpenAI while benefiting from Azure's enterprise-grade security and compliance. We ensure enhanced security, compliance, and responsible AI practices. Azure's AI-optimised infrastructure and various security levels, including double encryption and advanced identity management, safeguard sensitive data," she said.

Challenges and support

Bavi acknowledged the challenges faced by Indian startups, including access to resources and funding.

"To address these challenges, the Microsoft for Startups Founders Hub aims to create a more inclusive and representative startup ecosystem," Bavi said.

She said the hub doesn't require startups to be "investor-backed" to access benefits, making it open to all founders, regardless of their background, location, or progress.

"The platform offers technology benefits that grow with a startup's lifecycle, providing free access to powerful development and productivity tools, including Microsoft Azure and GitHub. As usage increases, startups can unlock additional credits over time," she added.

Expanding support across industries

Bavi also said Microsoft is actively supporting startups across various industries, offering tailored programmes for diverse sectors through initiatives like ‘Project Amplify.’

"This initiative offers hands-on support, mentorship, and collaboration opportunities to foster their growth and positive influence. We have already partnered with 10 purpose-driven startups in India through this programme, helping them make a positive difference in society," she added.

Future initiatives

Bavi outlined Microsoft's vision for the long-term support and empowerment of startups in India. Initiatives like Microsoft AI Innovate, a 10-week programme supporting startups leveraging AI technologies, demonstrate the company's commitment to fostering innovation.

"We believe that India's startup opportunity lies in both local and global impact, and we remain dedicated to providing the necessary tech stack and solution areas to fuel their growth. As startups build fascinating solutions on top of our platforms, we continue to act as a reliable platform provider, supporting and fostering the growth of India's vibrant startup ecosystem," she added.

Bavi said Microsoft stands at the forefront of this new era of AI, backed by years of strategic investments in AI research and the cloud.

"We are dedicated to making the promise of AI real while ensuring responsible use. We are excited to witness the ground-breaking innovations our startup customers will create, ultimately driving global innovation to new heights," she said.

Also read: Microsoft Ignite 2023: Top 10 announcements Satya Nadella made at the event

(Edited by : Shoma Bhattacharjee)

First Published:Nov 20, 2023 5:45 PM IST