Indian startups may add $1 trillion to Indian economy by FY30: CII report
Unicorns are startups that are valued at $1 billion or more
Indian startups, including unicorns, are likely to add $1 trillion to the Indian economy by 2029-30 (FY30), according to the findings of a report released on Thursday. It added that the size of the Indian economy is likely to be $7 trillion by 2030.
The findings were a part of the “Unicorn 2.0: Adding the Next Trillion” report released by the Confederation of Indian Industry (CII) in New Delhi. It was prepared in partnership with McKinsey & Company.
The report said that between 2010 and 2023, India has minted over 100 unicorns. Between 2024 and 2035, the country may see 300 new unicorns. Notably, unicorns are startups that are valued at $1 billion or more.
The report highlighted that Indian startups may provide 50 million new jobs to the economy, adding that in the last decade, 20-25 per cent of jobs created in India were due to startups.
Out of 50 million, 4-5 million are expected to be direct jobs, 9-10 million may be for gig workers, and the rest 35-40 million indirect jobs, which would be created by suppliers in the value chain.
Among all sectors, the retail and e-commerce sector is likely to have the highest gross merchandise value (GMV) of $380-400 billion by 2030, the report said. It is likely to be followed by $140-150 billion in manufacturing and $65-75 billion in the fintech sector.
Moreover, agriculture, healthtech, travel and mobility, telecom and entertainment, and education sectors are likely to contribute a combined $260-270 billion to the Indian economy by FY30.
The report also said that the total GMV of exports is likely to jump 20-23 times to $140-150 billion in 2030 from $6-10 billion in 2022-23.
Between FY16 and FY23, startups contributed 10-15 per cent to India’s gross domestic product (GDP) growth. “In coming years, it is only going to go up,” said Ramdoss Seetharaman, Senior Partner, McKinsey & Company.
“The impact of startups goes beyond balance sheets. Socially, these enterprises can be architects of change. Initiatives aimed at societal betterment in India, from education and healthcare to sustainability, underscore the commitment of startups to positively impact communities,” said Chandrajit Banerjee, Director General, Confederation of Indian Industry.
First Published: Mar 14 2024 | 7:17 PM IST