Startups Expected to Add $120 Billion to India’s GDP by 2030
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New Delhi, Dec 19 (NationPress) Startups are poised to be a pivotal force behind India's economic expansion during this 'Techade,' with projections indicating a potential contribution of nearly $120 billion (or 1.6 percent) to the nation’s GDP by 2030. This represents a remarkable increase from $35 billion in 2023, as outlined in a recent report.
As most advanced economies typically see tech startups contributing between 5-10 percent of their GDP, India's journey is only just beginning, according to insights from venture capital firm Kalaari Capital.
Moreover, the contribution from startups could skyrocket to an astonishing $1.6 trillion by 2047, accounting for 5 percent of the GDP when India aims to evolve into a 'Viksit Bharat' with a $35 trillion economy, the report specified.
Additionally, the nation is projected to have over 300 unicorns by 2030, a significant rise from more than 100 currently.
According to the report, “The ‘Techade’ is just the first innings in India’s golden Test match,” indicating substantial growth in both manufacturing and services, cumulatively adding $800 billion of export value to the GDP.
Beyond GDP contributions, recognized startups in India have generated more than 1.66 million direct jobs across over 55 diverse industries to date.
The IT sector leads in job creation with 204,119 jobs, followed by healthcare and life sciences with 147,639, and professional and commercial services with 94,060, according to the latest government data. This figure is expected to rise substantially in the coming years.
Other significant employment generators include startups in education (90,414), human resources (87,983), construction (88,702), food and beverages (88,468), agriculture (83,307), and artificial intelligence (23,918), as per data from the Department for Promotion of Industry and Internal Trade (DPIIT).
India currently boasts over 146,000 DPIIT-recognized startups and more than 100 unicorns.
Through the 'Startup India' initiative, the government is actively pursuing various measures to foster the development and growth of the startup ecosystem, enhancing job creation across the country.
The flagship programs include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS), which support startups at different phases of their business journey.
The government also introduced the ‘Startup India Hub’ portal, providing stakeholders in India's entrepreneurial ecosystem access to resources, information, and benefits under the ‘Startup India’ initiative through a unified digital platform.
