Why Pune clicked as G20 venue for digital economy

Around 20-30 per cent of the startups in Pune are dedicated to the digital economy and the G20 The Digital Economy Working Group meeting beginning Monday looks to tap into this potential.

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The second Sherpa track of G20 will see the Digital Economy Working Group meet in Pune on Monday to discuss how to harness the digital economy’s benefits.

For the last many years, Pune, along with Bengaluru and other cities, have made a significant mark in the digital map of the country. In Pune, one of the early starters in the country’s digital landscape, digital economy has become the buzzword. Be it companies like Vayana Network, the country’s largest supply chain finance company, or the acquisition of digital-first startups by global giants, the city has potential that many feel needs to be tapped.

Back offices of many banks, finance and insurance companies have populated the cityscape, many of whom also have dedicated product development centres. One of the reasons why Pune has managed to attract such investment is the availability of talent and the comparative cost advantage over cities like Mumbai and Bengaluru.

Unofficial estimates by experts show that around 20-30 per cent of the startups in the city are dedicated to the digital economy. Maneesh Bhandari, CEO and founder of GrowthPal, a global merger and acquisition (M&A) platform, said the present ecosystem in Pune is conducive to such startups’ growth.

The city has a robust system, be it Aadhaar-enabled microfinancing or leveraging the Aadhaar network to help companies access credit. Udyam, the unique registration for MSMEs, has also seen an uptake in the district.

A 2021 government study also showed Pune had the highest number of Udyam Aadhaar registrations in the country since 2020. The study said of the 7.8 lakh registrations in the country, Pune alone accounted for 1.20 lakh.

With this background, Bhandari said choosing Pune for the next round of meetings to harness the power of the digital economy was a welcome move. “If anything, this will bring the city and its ecosystem into the limelight about a sector which has been growing well,” he said.