The Indian startup ecosystem is on a remarkable journey and it is projected to contribute $1 trillion to the economy by 2030. A recent KPMG report highlights the significant role being played by startups and the sector contributed up to 15 percent of the country’s GDP growth between FY16 and FY23. Their impact reached $140 billion in FY23 and it showcased their undeniable potential.
The startup arena in India is diverse as well as dynamic and this makes it fascinating. Initially tech hubs in metro cities like Bengaluru, Delhi and Mumbai emerged. Later, the tier-II and tier-III cities like Pune and Chennai showed potential. The smaller cities were earlier often overlooked and are now buzzing with entrepreneurial activity. More than 45 percent of new startups are now from these regions.
States like Bihar and Assam are proving that innovation is not limited to metros. Bihar has witnessed growth in startup ecosystem by 54.6 percent from 2022 to 2023.
Another fascinating aspect is the variety of sectors that the startups are usually exploring. Fintech remains a standout equipped with more than 6,300 startups and its adoption rate is ahead of the global average. The EV market is projected to hit $113 billion by 2029 and it also opens vast opportunities for startups to innovate as well as meet the demand for sustainable mobility.
Foreign investments are adding fuel to this fire further with countries like Singapore and the US are eying India’s startup ecosystem as a goldmine for innovation and growth.
The ecosystem could well be a trillion-dollar marvel by the end of the decade with the right support and continued focus. The momentum is there and now it is about keeping the wheels turning.
