Indian startups may add $1 trillion to Indian economy by FY30: CII report

Between 2024 and 2035, the country may see 300 new unicorns, the report said

Indian startups are likely to create 50 million new jobs and add $1 trillion to the economy by 2029-30 (FY30), the Confederation of Indian Industry (CII) has said in a report.

The report, titled ‘Unicorn 2.0: Adding the Next Trillion’, also said that the size of the Indian economy was likely to be $7 trillion by 2030. The report, released on Thursday, was prepared in partnership with McKinsey & Company.

Startups which are valued at $1 billion or more are called Unicorns.

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“20-25 per cent of jobs created in India over the last decade were due to startups. And by 2030, Indian startups may provide 50 million new jobs to the economy,” it claimed.

 

Out of these 50 million, 4-5 million are expected to be direct jobs, 9-10 million may be for gig workers and the remaining 35-40 million indirect jobs, which would be created by suppliers in the value chain.

The report also said that India had minted over 100 unicorns between 2010 and 2023. And the country might see 300 new unicorns between 2024 and 2035.

Among sectors, retail and e-commerce 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 are likely to contribute a combined $260-270 billion to the Indian economy by FY30. 

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The report also said that the total GMV of exports was likely to jump 20-23x 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 health care to sustainability, underscore the commitment of startups to positively impact communities,” said CII Director General Chandrajit Banerjee.