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Start-up to account for 4-5% of India’s GDP

December 16, 2022

Start-up to account for 4-5% of India’s GDP
Startups are expected to contribute about 4-5% to India’s gross domestic product (GDP) over the next three to five years, up from 2.5-3% currently, according to a report by StrideOne, a tech-enabled NBFC.

The government recently said there were 84,012 startups registered in the country till November 2022, up from 452 in 2016. It also said the success rate of startups in India was much higher than in other countries. India is the third-largest startup ecosystem, behind only the US and China.

There were over 14,500 startups that registered themselves in 2020, which increased to just over 20,000 in 2021, and there were 24,682 new-age companies that came into the system in 2022 alone, the report showed. The number of startup registrations was further projected to grow at a compound annual growth rate (CAGR) of 25% between 2022 and 2027, it added.

“The Indian startup ecosystem has matured considerably not just in terms of capital infused but also the level of sophistication and capacity to unlock global scale,” said Abhinav Suri, co-founder of StrideOne.

The report further said the ecosystem had also brought in more jobs in the economy. In 2022, there were about 0.23 million jobs that new-age companies created, up from 0.19 million in 2021. That was expected to increase further, going forward. The total number of jobs created by startups grew at a CAGR of 78% from 2017-22 and is projected to grow at a CAGR of 24% from 2022-27, the report noted.

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