BANGALORE: Start-up and MNC ecosystem in India is likely to drive India's future innovation growth, ably supported by a huge domestic market with immense untapped potential, according to a study released here.

India is increasingly shifting towards becoming a technology-enabled economy which is evident by some of the government initiatives and budgeting, as per the study conducted by Zinnov Management Consulting, a leading globalisation advisory firm.

According to the study, India today is at the cusp of becoming an epicentre for global innovation, which is driven by the timely amalgamation of multiple factors viz domestic market, global aspirations of Indian firms and the need for innovation to succeed.

While the private sector has always rooted for technology adoption, the government too seems to be making the strategic shift. The Indian Government has earmarked USD 9 billion for investment in IT initiatives over the next five years; 12 per cent y-o-y rise in IT spending allocation to States.

"The next decade will play a crucial role in the evolution of India's IT ecosystem, which will also have a significant bearing on the innovation growth story," Pari Natarajan, Co-Founder & CEO, Zinnov Management Consulting, said.

Highlighting the synergies that have also spurred the MNC & Start-up ecosystem in India, the study says India has over 2,50,000 professionals working in R&D related services across captive centers and service providers.

The study also takes note of the contribution of second generation entrepreneurs in India.

Successful IT company founders like Narayana Murthy and Azim Premji have started venture funds to encourage entrepreneurs resulting in the growth of the start-up ecosystem, the study states.