Start-ups can add $1 trillion to economy by 2030: CII unicorn report
The next phase of unicorn growth in India could contribute $1 trillion to the economy, pushing it to $7 trillion by 2030, a CII report said on Thursday.
This could add 50 million new jobs to the economy, said the report titled Unicorn 2.0: Adding the next trillion.
The report, prepared with McKinsey & Company as the knowledge partner, was released at the CII Unicorn Summit in the capital.
FUELLING GROWTH
Ramdoss Seetharaman, Senior Partner, McKinsey & Company, said, “Over the next decade, Unicorn 2.0 is poised to unleash its full potential, adding $1 trillion to the economy, fuelling 1520 per cent GDP growth, and over 50 million jobs. These leading institutions of tomorrow are going to be integral to making India’s ‘techade’ a reality.”
India’s 100plus unicorns and about 100,000 startups have contributed 10 to 15 per cent to GDP growth between 2016 and 2023, according to the CII report. The combined valuation of 113 unicorns is $350 billion as of January 2024.
R Dinesh, President, CII, said that the startup ecosystem is a vibrant tapestry woven with threads of innovation, resilience, and transformative ideas.
VC FUNDING
The ecosystem also witnessed a staggering influx of $140 billion in venture capital funding between 2014 and 2023, underscoring investors’ confidence in India’s entrepreneurial landscape.
The current ecosystem has generated over 1213 million new jobs, including over 900,000 direct organised positions, more than 3.5 million in the gig economy, and about 79 million indirect jobs. About 35 per cent of the workforce in Indian startups are women.
Chandrajit Banerjee, Director General, CII, said, “Startups and their corporate counterparts contribute significantly to India’s economy, injecting an impressive $140 billion in FY23. Projections suggest this could rise to $1 trillion by 2030. 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.”
Abhiraj Singh Bahl, CII Chair, Unicorn Forum, and CoFounder, Urban Company, said, “In the everevolving landscape of entrepreneurship, startups play a pivotal role in driving innovation, creating jobs, and fuelling economic growth. From access to capital and strategic mentorship to fostering an ecosystem that nurtures talent and encourages disruptive thinking, the factors influencing startups’ sustained growth are multifaceted.”
Rahul Garg, CII CoChair, Unicorn Forum, and Founder and CEO, Moglix, said, “The startup landscape is poised for a transformative journey towards the future. Looking towards 2030, we see the potential for India’s startups and unicorns to bring together ingenuity, resilience and collaboration to reimagine the future. They could redefine industries, use cuttingedge technologies and address challenges.”