Startups Projected to Boost India’s GDP by $120 Billion by 2030
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New Delhi, Dec 19 (NationPress) Startups are poised to be a fundamental catalyst for India’s economic advancement in this ‘Techade,’ with projections indicating they could add nearly $120 billion (or 1.6 percent) to the country’s GDP by 2030. This represents an impressive increase from $35 billion in 2023, as outlined in a recent report by venture capital firm Kalaari Capital.
Comparatively, it is common for developed nations to have tech startups contributing between 5-10 percent of their GDP, signifying that India’s progress is just beginning.
The report further suggests that by 2047, startup contributions could escalate to an astonishing $1.6 trillion, thereby comprising 5 percent of the GDP as India aims for a 'Viksit Bharat' with a $35 trillion economy.
Additionally, the number of unicorns in the nation is expected to exceed 300 by 2030, a significant rise from the current figure of over 100.
According to the report, “The ‘Techade’ is merely the first innings in India’s golden Test match,” highlighting anticipated growth in both manufacturing and services sectors, which together are expected to add $800 billion in export value to the GDP.
Beyond GDP contributions, recognized startups in India have generated over 1.66 million direct jobs across more than 55 diverse sectors to date.
The IT industry has led job creation with 204,119 positions, followed by healthcare and life sciences with 147,639, and professional and commercial services with 94,060, based on the latest government statistics. This figure is anticipated to rise in the future.
Other notable employment sectors include education (90,414), human resources (87,983), construction (88,702), food and beverages (88,468), agriculture (83,307), and artificial intelligence (23,918), according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).
Presently, India is home to over 146,000 DPIIT-recognized startups and more than 100 unicorns.
The government is actively supporting the growth and development of the startup ecosystem through the 'Startup India' initiative, which includes various initiatives to foster job creation.
Key programs include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS), which assist startups at multiple stages of their growth.
The government has also introduced the ‘Startup India Hub’ portal, a digital platform designed for stakeholders in the entrepreneurial ecosystem to access resources, information, and benefits available through the ‘Startup India’ initiative.
