A virtuous cycle of entrepreneurship

According to the Credit Suisse Wealth Report 2020, after stagnating for several years, the number of millionaires in India rose rapidly in the two years before the pandemic

In the first three parts of this series, we saw how India’s corporate landscape is transforming, the progress in layers that is driving rapid and broad-based growth, and sector-specific trends nurturing clusters of unicorns. In this concluding part we do some crystal-ball gazing for what these mean for the future of entrepreneurship and the Indian economy. We focus on the virtuous cycle of capital, and the long-lasting implications of technology innovations.

Capital availability has strong self-reinforcing feedback loops, as discussed briefly in the first part of this series. The higher a company’s profit, the more the capital available for investing in