Every emerging economy needs booster rockets. And in case of India, which is already the fifth largest of the global economies and aims to be the third largest by 2030. Kalaari Capital, a Bengaluru-based venture capital firm, has stated in its report that India’s start-has the promise of contributing as much as $120 billion to the GDP by 2030. Compared to the current levels, this represents a 350% rise.
Startups are especially a blessing for India since over the past few years, a new category of first generation entrepreneurs have emerged who have workout out tech-based business models that have found encouraging response from the market. These have fostered innovation, harnessed technologies in solving human problems, quickly adapted to market dynamic, and, perhaps most important of all, created significant employment.
Transformative effect: Contribution to GDP by 2047
Noting the transformative effect of the startups as a whole, the venture capital firm said in 2023, Indian startups contributed $35 billion to the Indian GDP. The year 2047 will mark the centenary of India winning Independence. By that year, the contribution of Indian startups to the Indian GDP can zoom to $1.6 trillion. This year is significant since India’s economic planners have set the target of turning India into a ‘developed nation’ by that time and tech startups could account for 5-10% of the GDP by that year.
Several tech startups have now become a way of life for Indians, who are increasingly adopting new digital tech to secure a lot of services such as financial services, food and grocery delivery, education, healthcare etc. One of the market segments that is supposed to grow at a clip of 20% (compounded annual growth rate) by 2030 is the edtech sector. Accordingly, education startups, or edtech in short, have been able to mop up nothing less than $12 billion funding from investors.
Significance of deeptech ecosystem
“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 term deep tech companies refers to startups that find innovative solutions to complex problems using scientific and engineering breakthroughs. Healthcare startups have lagged behind with $7 billion funding till date. Financial services is another sector that is rising at a fast clip based on the force of digitisation. There are as many as 26 unicorns in the fintech sector alone. It can rise 500% in 3 years.
It is not for nothing that startups, especially in the tech sector, have been provided policy push by different governments around the world. In India, too, startups have been projected to add significantly to the GDP. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
