The India Story
World’s Fastest Growing Large Economy
India is currently the fifth largest economy with a $3.8 Trillion GDP and is poised to become world’s third largest economy by 2027 with a $5 Trillion+ GDP. India is world fastest growing large economy and is poised to continue this growth momentum in the coming decades, forging India’s century.
Country wise GDP for 2023 ($Bn) and Growth Rate (2017-2022)
Projected GDP Market Share (Country wise)
India’s growth is underpinned not by a usual agriculture to manufacturing to services led growth path that economies undertake as they mature, rather India leapfrogging form being an obscure ‘third-world’ inefficient agriculture led economy one of the world’s largest most efficient and globally integrated services led economy. India’s transition from old age economy to a new age economy is the fastest the world has witnessed yet.
Country wise Efficiency of Services
Employment Based Sectoral Efficiency
India Reaping Its Demographic Dividend
With 1/6th of humanity residing within its borders, India has manged to turn it biggest handicap, of overpopulation, into the vanguard of its stellar rise. India’s resurrection as a major global economy is being driven by more than 500 million young prosperous driven consuming populace. By the middle of 21st century, 1/5th of the world’s working population will be in India.
Today’s India is reaping its massive demographic dividend. Unlike naturally aging developed economies or artificially aging economies such as China; India boasts of the youngest workforce among major economies with national average of 28.
During 2005-2020, India uplifted 415 Million people out of poverty, marking the largest upward social mobility event of 21st century. Indian middle class is now more than 300 million strong.
Every year India produces 4 Mn college graduates, driving 60 Bn of value creation in the economy and incorporating 16 K startups every year. The Indian Middle class now has one of the highest tertiary education rates among peers from other developing economies.
Rise of new age consumers across all socio-economic stratas is remapping India’s consumption patterns. India’s domestic consumption, at 68% of the GDP, is the highest among large developing economies and is expected to grow at ~8% CAGR for this decade.
Billion+ Dreamers & Doers building Global Hub For Innovation
During the first quarter of 21st century, India has leveraged the strong foundations of services industries to build a hub for entrepreneurial innovation. Catalysed by a vast young globally integrated working and consumption class, favourable policy making and economy wide digitization efforts, India has cemented its pole position globally as the destination of choice for building and investing in companies.
The disconnected, inefficient cash economy in India faced significant transformation with the advent of the Indian tech stack, including Aadhaar, UPI, and GSTN. These innovations fostered financial inclusion and enabled seamless digital transactions, paving the way for a more connected and efficient economy.
Indian economy has strong fundamentals, such as a stable banking system, diversified exports, and low levels of debt. These strong fundamentals act as a cushion and can help prevent an economic crisis, as the country's financial system is better able to absorb and mitigate the impact of any external shocks.
The Indian government has launched several initiatives, such as Make in India, Startup India, and Kerala Startup Mission, to promote entrepreneurship and economic growth across the country. Also reforms linked with tax holidays and centralized procurement have created a meaningful impact in developing the nation.
Deep Innovation Penetration
Innovation happening is not limited to metro cities but has permeated to the hinterlands, both in terms of origination of innovation and the target market. These areas are now home to a new breed of entrepreneurs who are challenging the status quo and driving innovation in various sectors.
Building India Startup Inc., For The World
A predicable business environment for early stage businesses, availability of trained workforce with an entrepreneurial bent of mind and India’s rising status as the investment destination for global pools of risk capital has culminated in explosive growth in global investments across the stages, especially in early stage companies.
Country wise Net Inflow Growth of Foreign Direct Investment (FDI)
India has emerged as the third largest hub for entrepreneurship in the world. Given Indian startup ecosystem deep connections with all major economies in the developed western, middle eastern and far eastern regions, it is poised to become the only fast growing globally connected startup and innovation hub in the world in the decades to come.
Number of Unicorns Formed in India
Total Funding and Deal Count
‘India Startup Inc’s rise to prominence has been alongside with funding ecosystem maturing in multiple aspects. Past decade has seen the ecosystem evolve not only in terms of depth of late-stage capital markets being able to support exits for early-stage risk capital but also in terms of robustness of capital supply and availability which is considerably immune to global financial cycles and shocks.
Capital Raised by VCs to Invest in India
Exits in Indian Startup Ecosystem
On its way to a $5Trillion economy, with the largest, the youngest and an earnestly aspirational population in tow; India spent the first quarter of this century building the foundation of sustained growth, uplifting 100s of millions out of poverty and training a world class work-force. Next quarter will be spent reaping demographic and stability dividends to build a services-led globally integrated economic powerhouse, with the expectational entrepreneurs of India leading from the front and deployment global and domestic risk capital fuelling the growth.
21st century will again witness the rise of India at the global stage. The creation of a world leading prosperous, responsible and vibrant economy will be India’s gift not only to its citizenry but also to the world