Start-ups to contribute 4-5% to India’s GDP in next five years, says report

According to a report by StrideOne, India has more than 60,000 registered start-ups in India and therefore, has the potential to contribute 4-5% to the country’s gross domestic product (GDP) over the next 3-5 years. As per Economic Survey 2021-22, India is the third-largest start-up ecosystem in the world, succeeding US and China.

It is expected in the report that around 24,500 platforms would have registered in 2022, while it was estimated as 20,000 in 2021. The registration of new start-ups is expected to grow at an annual rate of 25% during 2022-27. The funding in start-ups has also been growing at an exponential rate with an increment of 42% annually in the total funding raised, from 2016-2021 whereas the deal count rose by 23%. SaaS, FinTech, and Logistics attracted the most investment.

The report also emphasized the contribution of start-ups in the textile industry, gig economy, and B2B logistics to the overall growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.