Unicorns likely to add $1 trillion to Indian economy by 2030, create 50 million jobs: CII
Upstox
2 min read • Updated: March 15, 2024, 3:05 PM
Summary
The country's 100-plus unicorns contributed to 10% to 15% of GDP growth between FY16 and FY23. By 2030, the unicorns will add $1 trillion to the Indian economy, which is expected to expand to $7 trillion by that year, the CII said. In the process, unicorns will also boost employment generation, adding 50 million new jobs by then, the industry body added.
Unicorns would be one of the key drivers of the Indian economy in the next six years, suggested a report released by the Confederation of Indian Industry (CII). A ‘unicorn’ refers to a startup exceeding a valuation of $1 billion. There are over 100 unicorns in the country, which are expected to add $1 trillion to the economy by 2030, the industry body said in a report released on Thursday, March 14.
While unicorns will add $1 trillion, the economy’s overall size is expected to reach the $7 trillion mark by 2030, said the report, titled 'Unicorn 2.0: Adding the Next Trillion'. The size of the Indian economy, the world’s fifth largest, is currently estimated at $3.7 trillion.
Prepared by McKinsey & Company as the knowledge partner, the CII report predicted a total of 50 million new jobs to be created by the unicorns by 2030.
As of December 31, 2023, over 1.2 million direct jobs were created by startups in India, the Ministry of Commerce said last month. The total number of recognised startups in the country stands at 1,17,254, whereas 113 among them are unicorns.
The combined valuation of these 113 unicorns stood at $350 billion as of January 2024, the CII pointed out. A bulk of these unicorns have emerged over the past decade, as the country recorded its first unicorn in 2011.
The sectors whose growth will be powered by unicorns include retail, e-commerce, SaaS, manufacturing and next-gen financial services, the report suggested.
Startups added $140 billion in FY23
Startups, along with their corporate counterparts, injected $140 billion into the Indian economy in the financial year 2022-23, said Chandrajit Banerjee, Director General of CII.
"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," Banerjee added.
The CII report further noted that the country’s 100-plus unicorns cumulatively added 10-15% to the gross domestic product (GDP) growth between fiscal years 2016 and 2023.
The role of startups has been pivotal in driving growth in leading sunrise sectors, such as e-commerce, modern retail, healthcare services, tourism, media and communication and next-gen financial services, among others, the report further said.