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INTRODUCTION India has achieved a tremendous growth in past 2 decades.

Indias recent growth has been impressive, with real GDP rising by over 8 percent a year since 2004accompanied by a jump in innovative activities. Growth has been driven by rapid expansion in export-oriented, skill-intensive manufacturing and especially, skill-intensive services. The economy growing at a phenomenal rate, combined with a flourishing democracy is making people sit up and take notice across the world. The world has started accepting India as a major player in global economies. Analyst and industry veterans prophesize India to be a major power of the future. A new study by the Mckinsey Global Institute (MGI) suggests that If India continues its recent growth, average household incomes will triple over the next two decades and it will become the 5th largest consumer economy in the world by 2025, up from 12th now. Yet, it is at cross-roads today. It is far from reaching its true potential. Apart from becoming a top global innovator for high tech products & services, India is still underperforming relative to its innovation & entrepreneurship potential- with direct implications for long term industrial competitiveness & economic growth. About 90 percent of Indian workers are employed in the informal sector, and this sector is often characterized by underemployment, as well as low-productivity and low-skill activities. Although India has the benefit of a dynamic young populationwith more than half of the countrys population under 25 years old only 17 percent of people in their mid-20s and older have a secondary education. Growth is not uniform across sectors; and large cross-sections of the populace remain outside its purview. Several social, political and economic factors need to be tackled for sustaining a high rate of growth, as well as to make this growth inclusive. To sustain rapid growth and help alleviate poverty, India needs to aggressively harness its innovation & Entpreneurship potential, relying on innovation-led, rapid, and inclusive growth to achieve economic and social transformation. In this research work, an attempt has taken to explore all important factors in relation of entrepreneurship and innovation. The Objective of the study is to understand the role of innovation & entrepreneurship in the sustainable & Inclusive Growth of India. The purpose of writing this research paper is to highlight the driving forces i.e. Innovation & Entrepreneurship as contributing factors for sustainable & inclusive growth of India & to emphasize how faster growth can be facilitated by promoting these drivers. RELEVENCE OF THE STUDY Given the increasing significance and visible impact of Entrepreneurship in wealth-creation and employment-generation, we consider it critical to Indias growth and development. This study has been undertaken to explore factors that have advanced Entrepreneurship in India and also several other factors that could further encourage and facilitate even greater growth through innovation. This research paper is highly valuable for government as well as for private sector & civil society because recommendations have been offered as a step towards making India to develop an economy & how sustainable & inclusive growth can be achieved by unleashing its innovation & entrepreneurship potential. Present Status of India Indias recent growth has been impressive, with real GDP rising by over 8 percent a year since 2004 accompanied by a jump in innovative activities. Growth has been driven by rapid expansion in exportoriented, skill-intensive manufacturing and, especially, skill-intensive services. For example, pharmaceutical firms such as Dr. Reddys Lab have been pursuing a twin strategy of profiting from the production of generic drugs and investing in research and development (R&D) to discover new ones. Growth has also been fueled by increased local demand, backed by rising urban and rural incomes, and a sharp rise in savings and investment rates. Indian manufacturers have focused on delivering low-cost products to previously untapped markets by innovating to lower costs and create new delivery mechanismsas with Tata Motors, which has promised to deliver a car, geared toward Indias middle class, priced at less than $3,000. India is an extreme dual economy. At one extreme, it is the worlds fourth-largest economy in purchasing power parity (PPP) terms, it is a nuclear and space power, and it is increasingly becoming a top global innovation player in certain key economic sectorssuch as biotechnology, pharmaceuticals, automotive components, information technology (IT), software, and IT-enabled services (ITES). India is increasingly becoming a top global innovator for high-tech products and services. Still, the country is underperforming relative to its innovation potential with direct implications for long-term industrial competitiveness and economic growth.About 90 percent of Indian workers are employed in the informal sector, and this sector is often characterized by underemployment, as well as low-productivity

and low-skill activities. Although India has the benefit of a dynamic young populationwith more than half of the countrys population under 25 years old only 17 percent of people in their mid-20s and older have a secondary education. To sustain rapid growth and help alleviate poverty, India needs to aggressively harness its innovation potential, relying on innovation-led, rapid, and inclusive growth to achieve economic and social transformation. At the opposite extreme, India largely remains a subsistence economy. With an average per capita income of $720 in 2005, India is still a low-income and mainly rural, agrarian economy. About a quarter of its population lives below the national poverty line, with significant spatial variance across and within states. Roughly 70 percent of its population is rural, and 60 percent of the workforce is engaged in agriculture. Illiteracy rates are 46 percent for women and 25 percent for men. Given this dual economy, it is natural to ask what can be done both to strengthen the likelihood of sustained high growth rates and to address the unmet needs of the informal sector and the poor. To sustain growth and reduce poverty, India must leverage and improve its innovation potential. Sustainable growth Indias spectacular economic performance since liberalization is, indeed a great achievement India was one of the few economies of the world which did not experience recession during the great recession of 2009. However, it is simply important that some deficiencies of this growth be recognized and addressed. A major deficiency of Indias spectacular growth is that the growth has not been Inclusive. Large number of poor, marginalized, vulnerable section of society has been left out of the growth process. This deficiency has to be addressed and growth has to be made inclusive. Inclusive Growth Inclusive growth, as the literal meaning of the two words, refers to the pace and pattern of economic growth. In this context, it is useful to distinguish between direct income redistribution or shared growth and inclusive growth while the focus of direct income redistribution is reducing the disparities between the rich and the poor in the short period, the inclusive growth approach takes a long term; perspective with its focus on productive employment. Four attributes of inclusive growth can be identified. 1- Opportunity:- There is opportunity when more and more varied ways are opened up for people to earn a living and increase their income over a period of time. 2- Capability:- There is capability when means are provided to the people to create or enhance their capabilities to exploit available opportunities. 3- Access:- There is access when means are provided to bring opportunities and capabilities together. 4- Security:- There is security when means are provided t protect the people against a temporary or permanent loss of livelihood. Inclusive growth can be defined as a process in which economic growth, measured by a sustainable increase in gross Domestic Product (GDP), contributes to an enlargement of the scale and scope of all four attributes. The opportunity dimension relates to the question of whether the growth process gives a large (and increasing) number of people legitimate opportunities to earn incomes. The capability dimension relates to the ability of the system to bring together opportunities and capabilities. In other words, it is the ability of the system to avoid skill mismatch and geographical mismatch. Access can be enhanced by the ease with which people can move from location to location in search of jobs. The concept of security implies that in a dynamic and evolving economy, the benefits of growth can be derived by providing a reasonable safety net to the people as they go through temporary ups and down. Challenges before Economic Growth India has even more to gain from economy wide productivity increases from diffusion and absorption of existing knowledge than from creation and commercialization of new knowledge. The global technological frontier is moving quickly, simultaneously opening opportunities and posing threats. India needs to tap into this rapidly moving frontier while expanding its comparative advantages. India can and must do more to take advantage of its critical capabilities to enable creation of new global knowledge. Just as important, if not more so, India must develop policies, institutions, and capabilities to diffuse local and foreign knowledge more effectively throughout its economy. From an economic viewpoint, India stands to gain more from catching up to the world frontier than from pushing out the frontier. Thus, the challenge of innovation in India combines a drive to move the global technological frontier, an effort to

increase the speed at which global innovations enter the country, and the most pressing needto improve prevailing practices across the entire economy. 1. Competition is vital to unleash innovation 2. Limited skills and training are a major bottleneck 3. Better information flows are needed 4. More early-stage funding is needed 5. Variations in productivity highlight the need for better knowledge diffusion 6. Private enterprises need to increase R&D spending 7. New domestic knowledge needs to be converted to commercial use 8. The Diaspora needs to be tapped more effectively 9. Existing pro-poor initiatives need to be scaled up Entrepreneurship & Innovation as Growth Drivers India requires Sustainable & Inclusive Growth increase in per capita income accompanied by changes in the structural composition of an economy towards higher value added goods and more efficient production methods. Entrepreneurship & Innovation can contribute to economic development by facilitating the reallocation of resources from less to more productive uses by performing costdiscovery, gap-filling, and input-completing functions in the economy and by supporting structural change. Unleashing the potential of entrepreneurs could turn out to be win-win process as we move into the new normal. On the one hand, young and creative people willing to take risks would find environments and conditions that would help them thrive and seize the 21st centurys opportunities. On the other hand, fostering entrepreneurial projects would provide public decision-makers with a strong socioeconomic return on investment, since a vibrant entpreneurial landscape can significantly contribute to innovation, growth and employment and hence to the renewal of the economic fabric. Productivity gains through innovation For all G20 countries, whatever their GDP per capita, the real game-changers will be breakthrough innovations in products and services, processes, organizational methods and marketing techniques. Economic history shows that most productivity growth-more than two thirds-comes from innovation. Entpreneurs are playing an increasing role in this, either by developing innovative products and processes, or by generating new ideas that may be seized and exploited by other firms or by universities and research organizations. As the OECD recently pointed out, global trends towards the knowledge economy, open innovation, global connections, non-technological innovation and the emergence of national and regional economic models and new types of social innovation have increased the importance of SMEs and entrepreneurship to innovation. This promoted the OECD to emphasize that policies to strengthen entrepreneurship and increase the innovation capabilities of SMEs should be one of the main planks of government innovation strategies. Another survey by the OECD showed that firms less than five years old make up around 36% of all patenting firms in Japan, and around 25% in France, where they also account for around 23% of new patent applications. New sources of competitiveness to nurture growth The contribution of entrepreneurship to growth has been widely documented in economic theory since the early words of Joseph Schumpeter. In Schumpeter view, the entrepreneur is the leading force behind the process of creative destruction. He brings about new process, thus disrupting the economy and leading it to long-run evolutionary growth. This pioneering analysis has since been thoroughly discussed, deepened or criticized. A 2007 review of recent research on the value of Entpreneurship concluded that entpreneurial firms experienced higher growth in production value and labor productivity than nonentrepreneurial firms. Indeed, of seven studies that specifically examined the impact of entrepreneurship on value added growth, six concluded that entrepreneurship had a positive impact. The finding is in line with the results of survey conducted in 1999 by the Global Entpreneurship Monitor. Comparison among 10 countries showed a high positive correlation between the number of business start-ups and the quarterly increase in real GDP with approximately 36% of the variation in economic growth explained by variations in businesses start-up rates.

To quote the economist, T. N. Srinivasan, Innovation and Entrepreneurship is a two-way relationship. In one sense, in innovation, someone finds something but that somebody may not be equipped to translate that something into a commercial proposition. That is where Entrepreneurship comes in. "Innovation is the specific instrument of entrepreneurshipthe act that endows resources with a new capacity to create wealth" (Drucker, 1985) innovation EntrepreneurshipThe discipline of entrepreneurship generally studies the why, when, and how of opportunity creation, recognition, and utilization. Entrepreneurship refers to an individuals ability to turn ideas into action. It includes creativity, innovation and taking calculated risk, as well as the ability to plan and manage projects in order to achieve objectives. This supports everyone in day-to-day life at home and in society; makes employees more aware of the context of their work and better able to seize opportunities, and provides a foundation for entrepreneurs establishing a social or commercial activity. Innovation Following the Oxford Handbook of Innovation (Fagerberg, Mowery, and Nelson 2005), the concept of innovation refers to the putting into practice of inventions. A narrow strictly technological approach focuses specifically on product and process innovations, or technological innovation, often said to be the result of knowledge-intensive (technological) entrepreneurship. A broader approach refers to innovation as the development of new products, new processes, new sources of supply, but also to the exploitation of new markets and the development of new ways to organize business. One can distinguish between more incremental innovations and more radical innovations. It is important to note that innovation does not only refer to the first introduction of novelty by a first mover, but also to the spread of the innovation to other actors in the economy. Strengthening Innovation Environment & Entpreneurship Vitality 1. Buidling Local Base 2. Leverage a relevant talent pool 3. Foster collaboration among key factors thourgh appropriate incentives 4. Provide enabling infrastructure 5. Ensure a stable, simple and conducive environment at regional level 6. Offering targeted tax incentives 7. Ensuring the availability of financing at each stage of enterprise development 8. Develop specific solutions for high risk/local qualified, entrepreneurial profiles 9. Foster the development of targeted educational programs 10. Super proactive promotion of entrepreneurship 11. Encouraging strong competition among enterprises 12. The social limits of Indian democratic politics 13. Overcoming obstacles to rural growth and urban transformation 14. The corruption cancer 15. Social causes of exclusivity 16. The politics of growth and inclusivity Development of 3 pronged Strategy

Strategic Composition facet to determine the quality of entrepreneurial and innovative perspective
Stimulating Entrepreneurial activities
Expanding Technology Parks & Incubators

Building human Capital

Providing fundings for firms to invest in training Industry oriented education

Normative business Climate

Encouraging stronger competition among enterprises

Early stage Funding

Better information flow with knowledge difusion

Offering targeted tax incentives

Funding to increase R & D Spending

Conversion of Domestic Knowledge into Commercial use

Incentives for lifelong learning

Public funds for Education

Improving basic skills in formal & informal sectors

Fostering Collaboration

Fostering the development of targeted educational programmes Developing entrepreneurial culture in society

Providing enabling infrastructure Ensuring conducive regulatory environment

Strengthening innovationfriendly sociocultural norms

Developing specific solutions for high risk/low qualified entrepreneur profiles

STIMULATING ENTREPRENEURIAL ACTIVITY India must create the environment to stimulate people to come forward to take initiatives in the field of manufacturing goods and services. A culture of Entpreneurship must be created that requires promoting the notions of risk and rewards and of success and constructive failures. India must encourage & support risk-taking people by facilitating with education, facilities & fianc. Some 319 million people are engaged in early- stage entrepreneurship across the G20, with a vast majority in the BRICS countries. It is therefore no surprise that entrepreneurship support is increasingly becoming a key plank of public policies aimed at ensuring strong and sustainable growth. This requires targeted measures in order to bolster the three pillars of the entrepreneurial context ecosystems, financing and culture. Expanding technology parks and incubatorsTechnology parks and incubators should be expanded with government support and private finance, and management should be based on international best practice. Spin-offs from universities and public research labs should also be encouraged, to create new companies. Scientists should be allowed to start spin-offs while holding their current jobs. Early stage funding In 2005, just 13 percent of deals by venture capital and private equity providers were for early-stage funding. In dollar terms, early-stage deals accounted for even less of such investments: 46 percent. Cumulative start-up capital provided for seed financing in India is estimated to be $25 million$35 millionenough for 75100 start-ups, many fewer than the 450600 start-ups needed. Measures should make it more attractive for wealthy individuals to invest in venture capital funds. This can be done through tax incentives and changes in the Securities and Exchange Board of India rules to allow tax passthrough benefits for accredited angel investors. The investment guidelines of pension and insurance funds could also be relaxed to increase their investments in early-stage ventures. Also crucial is the

creation of a fund of funds, where the government would provide leveraged returns to private investors by increasing potential returns or reducing potential risks. The fund could cover innovations in areas overlooked by the market, including agro-industry, rural industry, pro-poor grassroots industries, and start-ups where companies need to advance an innovation. Funding to increase R & D SpendingAggregate domestic R&D spending has never exceeded 1 percent of GDP, and 7580 percent comes from the public sector. However, between 1998 and 2003, multinational corporations spent $1.3 billion on R&D in Indiashowing that its valuable assets could be exploited more effectively. Actions to spur private R&D could include consolidating and expanding public early-stage technology development programs, as well as developing a policy and action plan to use public procurement to promote innovation. Reforms to existing early-stage technology development programs could include establishing a streamlined matching grant program building on Indias Sponsored Research and Development program and Small Business Innovation Research Initiativetargeted mainly at smaller enterprises and promoting more collaboration. Conversion of Domestic Knowledge into Commercial useOf the top 50 applicants for patents in India between 1995 and 2005, 44 were foreign firms. Only six were Indian; three of these were public institutions and one, a public corporation. Just two were private Indian firms, both in the pharmaceutical industry. Actions to promote commercialization and strengthen links among industry, universities, and public laboratories could include providing support to technology transfer offices, creating a patent management corporation, developing technology parks and incubators, and improving Indias regime for intellectual property rights. India should also consider enhancing support for higher-risk technology R&D and commercialization by strengthening its New Millennium Indian Technology Leadership Initiative including by opening the program to international collaboration and giving grants to both research institutions and private enterprises, with sharing of any resulting royalties. To further spur international collaboration, India could create a Global Research and Industrial Partnership program to promote advanced R&D and commercialization efforts conducted jointly by domestic and foreign enterprises. Fostering the development of targeted educational programmesTargeted educational programmes must be developed at school or college level to boost the attractiveness of entrepreneurship & endow the population with entpreneurial mindset. Promoting entrepreneurship in schools & college appears to be a key success factor. However, the perception of educational institutions as a vector that helps young people understand the value of Entpreneurship varies greatly across the country. In addition to government led programs, private players can also play a role in promoting the entrepreneurial mindset at an early age. Developing entrepreneurial culture in societyA culture must be developed in which people can perceive opportunities in market & their capabilities. In order to develop an entrepreneurial culture in society, entrepreneurship should be seen as good career choice with high societal regard & there must be media attention to Entpreneurship to inculcate the entrepreneurial spirit without the fear of failure. DEVELOPING HUMAN CAPITAL India must convert its youth into a skilled workforce. More than 500 million Indians are younger than 25. By 2050 India is expected to overtake China as the worlds most populous nation, and over the next five years will be responsible for nearly a quarter of the increase in the worlds working-age population. Already, India has almost a third of the available labor supply in low-cost countries Providing fundings for firms to invest in training Only 16 percent of Indian manufacturing firms offer in-service training, compared with 92 percent in China and 42 percent in the Republic of Korea. The Indian firms that provide in-service training are 23 28 percent more productive than those that do not. Moreover, gross enrollment in higher education is only 12 percent in India, compared with 90 percent in Korea and 68 percent in the Russian Federation. The skills bottleneck could be unblocked by providing public matching funds for firms to invest in training, increasing the fiscal and managerial autonomy of universities and colleges, and increasing private participation in higher education. Industry oriented education Steps must be taken towards establishing an education system having industry links. More & more private sector companies should come forward for collaborating with the educational institutions & universities.

A drastic increase in joint training programs with industry would ensure that university curricula reflect market needs. Incentives for lifelong learning In order to play their full part in the development of their ecosystem, future entrepreneurs need to acquire and develop specific skills. These include the ability to think strategically, assess risks and opportunities, leverage personal networks, motivate people and deal with unexpected issues, but also technical expertise in the specific fields and sectors in which entrepreneurship can flourish. Creating a new breed of entrepreneurial athletes thus requires leveraging the local talent pool through primary, secondary and higher education, vocational and lifelong training, and coaching. Public funds for Education India must address the growing supply constraint of high-quality education institutions, India requires stronger incentives to attract domestic and foreign private participation in higher education and its financing. The November 2006 agreement by the government to allow FDI in higher education and foreign universities to set up campuses in India is a positive step in this direction. Competitive grants for academic innovations and performance-based incentives for professors would also foster a more dynamic academic environmentone better aligned with Indias growth in knowledge intensive sectors. Improving basic skills in formal & informal sectors To increase productivity in both the formal and informal sectors, increased efforts are needed to combat illiteracy and provide basic skills. Indias high illiteracy limits the populations capacity to acquire the basic skills needed for an innovation economy and curbs the productivity potential of the informal and lower-skill sectors. The country has taken significant steps to reach its high enrollment rate of 94 percent in elementary education, though quality continues to suffer. This chronic picture has led to an education system that does not prepare students for a market that increasingly rewards problem solving, communication skills, teamwork, and self-learning. Despite a variety of programs to develop skills in the informal sector, the resources directed to the sector are not aligned with its size and the diversity of skills needed. India must use innovative approaches to improve the quality of primary and secondary education and strengthen basic skills for the informal sector by facilitating transfer of skills to the informal sector by supporting NGOs that provide training to meet the needs of the informal economy. These skills include training instructors, developing curricula, and encouraging external financing of informal training programs.

NORMATIVE BUSINESS CLIMATE India must strengthen its normative business climate by creating & commercializing knowledge at local and global level. Conducive environment must be created for the established and existed entrepreneurs by removing nonessential regulations and facilitating more transparent application of essential ones in product, land, labor, capital and enabling infrastructure service markets thereby promoting fairer and more intense competition complemented by financial support for public as well as for private sector. Encouraging stronger competition among enterprises India must encourage stronger competition among enterprises. Since the Indian economy was opened up in 1991, the private sector has invested the most in research and development (R&D) in the sectors most open to competition. In 2004, enterprise R&D was more than seven times higher than in 1991. India must sharpen competition among enterprises so that innovation becomes a necessityfor example, by reducing entry and expansion barriers such as limits on small-scale industries, and remaining restrictions on foreign direct investment (FDI) and barriers to import competition. In addition, reallocation of capital should be eased through bankruptcy reforms and modernization of the Industrial Disputes Act. Better information flow India is already the worlds fastest growing market for mobile phones, with the number of wireless subscribers jumping 55 percent in 2006. However, disparity persists between rural and urban areas: teledensity is 40 percent in urban areas and just 4 percent in rural areas. And while high-speed national research and education networks accelerate the pace of new discoveries and the expansion of knowledge, Indias connectivity is less than 1 percent of China, Korea, the United States, and European Union countries. Information-related actions could include expediting the allocation of radio and wireless broadband spectrums, increasing targeted subsidies for rolling out rural mobile and broadband, and agreeing on an organizational structure to deploy and manage a national research and education network. Need for better knowledge diffusion

Average enterprise productivity in finance, insurance, and real estate companies is nearly 23 times that in agriculture. But these industries account for only 1.3 percent of employment, while agriculture accounts for 60 percent. Actions to better diffuse existing knowledge could include increasing openness to trade and FDI, coupled with strengthening and expanding public support for technology at the cluster level and modernizing infrastructure for metrology, standards, testing, and quality (especially metrology). India could also consider strengthening its support infrastructure for technology licensing by creating a publicprivate technology acquisition fund, building on intellectual property that is already locally available. Fostering Collaboration Fostering increased collaboration among R&D institutes, universities, and private firms would help strengthen commercialization of knowledge. The Indian private sector has little interaction with public R&D. India must foster collaboration among through appropriate incentives by entrusting universities with the mission of applied industrial research, promoting the exchange of talents among academia, research and business or encouraging cooperation between established and entrepreneurial companies.

Providing enabling infrastructure India has tremendous potential to expand knowledge and commercialization through formal R&D and to move ideas from laboratories to markets. The world has acknowledged Indias R&D potential. More than 300 MNCs have set up R&D and technical centers in India. But despite their recent increases in R&D spending, national corporations and other domestic enterprises are not systematically exploiting this potential to Indias advantage. Indigenous R&D spending as a share of GDP remains low and dominated by the public sector. Furthermore, much of the knowledge that is created (especially by the public sector) is not commercialized. To fully exploit Indias R&D potential, the government must take three key steps: increase private R&D efforts increase the impact of public R&D India must provide enabling infrastructure, especially by fostering public/private schemes to develop common local infrastructure (R & D Centers, transportation, voice and data communication etc.) Ensuring conducive regulatory environment India must ensure simple, stable & Conducive regulatory environment at regional and national level to give undistorted access to larger markets while providing opportunity to achieve critical size quickly. Regulatory framework must encourage the private sector to undertake riskier initiatives that are economic beneficial. Offering targeted tax incentives Tax policy can be a powerful lever for promoting business creation and development. If well designed, it can also act as a powerful catalyst for innovation. India must offer targeted tax incentives to promote business and development as well as innovation. Tax schemes must be designed in such a way to promote innovation among entrepreneurs that encourage them to think beyond. Strengthening innovation-friendly sociocultural norms India must help to solidify a mind-set for nationwide innovation, more resources are required to raise awareness about the high social value of business and social innovation and commercial success, to disseminate success stories highlighting the achievements of techno-entrepreneurs, and to provide highprofile innovation awards and prizesincluding for creative teachers. Developing specific solutions for high risk/low qualified entrepreneur profilesThe most daunting challenge faced by emerging economies is the alleviation of poverty. This requires the creation of jobs for the unemployed, most of who are poorly qualified workers. One of the most promising approaches is the promotion of self-employment. Microfinance, as developed by Prof Mohammad Yunus in Bangladesh, has proven to be a powerful lever to support this kind of poorly qualified entrepreneur whose projects usually entail high risk as they are not supported by highlydeveloped business plans.

India has the potential of becoming a leading economy and has the unique opportunity to make that growth inclusive, provided there is willingness on the part of all sections of society to put in hard and disciplined work, together with serious, sustained and purposeful planning. First, there is much that needs

to be done to build up Indias potential. Better governance, more and better educational institutions, higher agricultural productivity, controlled inflation and improvement in infrastructure are some of the major and more important steps required to inclusiveness of growth. Entrepreneurship and innovation are core components to build socially inclusive and highly participatory economies in an increasingly global and competitive world. While this paper highlights and raises awareness of the importance of entrepreneurship and innovation in spurring economic growth and achieving the Millennium Development Goals, it also urges action. The paper consolidates existing knowledge and good practices in entrepreneurship education in India to enable the sharing and development of innovative new tools, approaches and delivery methods. It also provides recommendations to governments, academia and the private sector on the development for entrepreneurship. This is only the beginning the launch of a process in which the recommendations can be discussed on the national, regional, and local levels and implemented with the involvement of key stakeholders. Innovation and economic growth depend on being able to produce future leaders with the skills and attitudes to be entrepreneurial in their professional lives, whether by creating their own companies or innovating in larger organizations. Entrepreneurship is the first and arguably the most important step for embedding an innovative culture and preparing the new wave of entrepreneurs, entrepreneurial individuals and organizations. There is a high and growing level of interest in entrepreneurship from students, faculty, university administrators, employers and policymakers, as well as an increasing number of initiatives throughout the nation. The moment is right for a significant evolution of entrepreneurship education. We cannot determine today the exact nature of the next wave of entrepreneurship; however, we do know that it will require more creative, innovative and entrepreneurial attitudes, skills and behaviors. This paper is meant to be a catalyst and call for action on entrepreneurial activities. We need to learn from models around the world and focus on integrating the most relevant and high quality practices into the context relevant for the country. This should be a longterm commitment, however, not one that starts and then stops a few years later. Sustainability is a key issue. That means the objectives of entrepreneurship should be clear from the start and outcomes should be measured to ensure that the intended results are being delivered. With the goal of deepening the findings at the regional and local levels and initiating concrete actions that can advance entrepreneurship education as a critical component for addressing the global challenges of the 21st century To create a framework that promotes Innovation and supports entrepreneurship, public and private efforts should focus on stimulate entrepreneurial activities, building human capital and normative business environment to infusing the population with an entrepreneurial culture. This indicator assesses the strength of these three pillars by examining after detailed analysis of the components and their correlation with the prevalence of entrepreneurship, most important findings emerged In India, entrepreneurship flourishes naturally. This is due to the influence of several factors that support entrepreneurship vitality such as overall economic growth, massive urbanization and a quickly developing middle class. It may be concluded after the discussion thrown into research paper that for unleashing innovation potential & to encounter emerging challenges, India needs to develop a realistic, time bound & action oriented implementation planning in the form of 3 dimensional pronged strategy i.e. Stimulating Entrepreneurial Activity, Developing human Capital & normative Business climate. We also believe that entrepreneurship results in increased innovation and sustained economic growth. We see enormous potential in investing in entrepreneurship education in order to nurture talent and develop the next wave of leaders and innovators who will not only create jobs and value for society, but also empower others to create a better future. The time has now come to act boldly and decisively. The astounding success that the country achieved in the telecommunication field high density across the country and worlds cheapest call rates affordable by all needs to be reproduced in other areas. The problem of a massive parallel black economy, which has evaded a solution so far, needs to be tackled urgently and these funds brought into the much needed social sectors. Education is extremely important for improving the skill levels of the population so that everyone can be an equal partner in the countrys growth. More and better universities, schools and technical institutes should be created. Inflation, which is

running amok today, affects the poor man the most, severely limiting inclusiveness of growth. We need to fix acceptable inflation targets and constantly monitor them so that they do not go beyond the outer agreed limits. Similarly, Indias fiscal deficit remains one of the highest in the world, almost 7% of GDP in real terms. Political parties, across the spectrum, need to look beyond petty politics, sit down and agree on parameters for inflation and fiscal deficit beyond which certain tough economic measures must come into play automatically. Finally, rights of women, children, minority communities and the other marginalised sections of society must be constantly watched and protected if we wish to reach our goal of a truly developed society. India has been endowed with some of the worlds most essential minerals, beautiful places, diverse cultures and capable and talented people. It is time we stop squandering this advantage and make the most of what most countries can never even dream to have. There is much to be done, but if done and done correctly, then nothing can stop us from reaching the pinnacle of the world. To sum up, it has been argued that both entrepreneurship and innovation are linked to economic growth and industrial renewal. But it is not entirely evident exactly how. Often the relationships between growth, entrepreneurship and innovation, tend to be indirect rather than direct. The combination of entrepreneurship and innovation results in innovative entrepreneurship: new firms based on new (inventive) ideas, and sometimes, but not always, research-based. Such firms often have relatively high growth potential and may become future gazelles. Unfortunately, the research on and knowledge about innovative entrepreneurship is limited. The establishment and expansion of new firms is responsible for creating a high share of net new jobs. Gazelles and high-expectation entrepreneurial firms are often found among innovative and technologybased new businesses, but for them to play a key role in economic growth, it is also essential that there is a significant supply. That is, encouraging general entrepreneurial activities is not only likely to result in increased entrepreneurship, but also in a higher number of innovative high-growth firms. Many European countries need to be encouraged to increase their entrepreneurial activities. What is called for from a policy perspective are platform policies and holistic entrepreneurship policy (Lundstrm and Stevenson, 2005) that include and integrate key components from several policy domains. Improving innovative entrepreneurship will at the least require a combination of entrepreneurship, SME, innovation, science and technology, education/university and regional policies, see Figure 9. For example, SME policies are often developed to help existing small firms, while entrepreneurship policies focus on individuals and their entrepreneurial capacity (e.g. skills and motivation). An education/ university policy is important since universities are responsible both for the education of a large part of future key personnel, and for a substantial part of the advancement of science, R&D and innovation. Thus, the technological/knowledge profile and responsiveness of a (strong) university will influence the supply of innovative entrepreneurship and the profile of a dynamic region/country. In turn, innovation policy must, of course, include aspects linked to universities.