India is at the cusp of a transformative era, with start-ups positioned as the driving force behind its economic growth. The country’s start-ups can contribute $120 billion to its gross domestic product (GDP) by 2030, accounting for nearly 3.5 fold increase from the current level, said a Bengaluru-based venture capital firm Kalaari Capital in its latest report.
In 2023, Indian start-ups have contributed $35 billion to the country’s GDP. This number can further surge to $1.6 trillion by 2047 when India envisions becoming a developed nation with a $35 trillion economy. If we talk about the developed nations, the contribution of tech start-ups to their GDPs stands at around 5-10 per cent.
These ventures have defined the new-digital way of lives for Indians, driven by emerging technology across sectors like food, education, health, finance, among others.
Of these, the edtech market is expected to grow at a CAGR of 20 per cent by 2030. Supporting this growth trajectory, the edtech start-ups have raised over $12 billion funding from investors till date. On the other hand, the healthtech start-ups have raised $7 billion funds to increase digitisation in India. The fintech sector with 26 unicorns is expected to witness five-fold growth in the next three years.
It also highlighted that deeptech is important for India’s economic trajectory. “At present, India hosts the world’s third largest deeptech ecosystem. The number of deeptech start-ups will increase from over 3,600 to nearly 10,000 by 2030. Hence, the funding will also surge in this sector,” the report noted.
The deeptech sector will be majorly driven by spacetech, climatetech, semiconductors, mobility and EVs, and cyber-physical systems, it added.
India has also got its first privately managed deeptech innovation hub to mobilise $100 million by uniting members graduated from incubation centres and provide them support to transform their innovative ideas into reality.
