Startups have the potential to contribute $120 billion to India’s GDP by 2030
Startups will be the main driver of growth in India’s ‘Techade’ economy, which is likely to contribute about $120 billion (or 1.6 percent) to the country’s GDP by 2030, which will be about 3.5 times jump from $35 billion in 2023, according to a new report.
With most developed economies seeing between 5-10 percent of their GDP contributed by Tech startups, India’s journey has just begun, according to a report by venture capital firm Kalaari Capital.
In fact, the contribution made by startups could reach $1.6 trillion by 2047, thereby contributing 5 percent of GDP when India aims to become a ‘Viksit Bharat’ with a $35 billion economy, the report said.
Also, the country is expected to have more than 300 unicorns by 2030, up from 100 currently.
“‘Techade’ is just the first innings in India’s gold exploration game,” the report said, adding that both manufacturing and services are expected to grow significantly, adding an estimated $800 billion to GDP.
Not only contributing to the GDP, well-known startups in India have created more than 16.6 lakh direct jobs in more than 55 different industries so far.
The highest number of direct jobs were created in the IT sector (2,04,119), followed by life sciences and health (1,47,639), and technical and commercial services (94,060), according to the latest government data. This number will only increase in the coming years.
Startups in the fields of education (90,414), human resources (87,983), construction (88,702), food and beverage (88,468), agriculture (83,307) and artificial intelligence (23,918) were other top employment generators, according to the Department of Promotion. of Industrial and Internal Trade data (DPIIT).
India is currently home to over 1,46,000 DPIIT-recognized startups, and over 100 unicorns.
Under the ‘Startup India’ programme, the government is constantly taking various initiatives to develop and grow the ecosystem and promote job creation in the country.
The leading schemes are the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS), which support startups at various stages of their business cycle.
The government has also launched the ‘Startup India Hub’ portal so that the participants of the entrepreneurship ecosystem in India can access various resources, information and benefits under the ‘Startup India’ program on a common digital platform.
