News | DEC 16, 2022

India's Startups Likely To Contribute 4 -5% Of GDP In Five Years

StrideOne, a leading tech-enabled NBFC offering a dynamic financial services platform has released a report entitled 'The Startup Economy Report 2022' that assesses the impact of startups and new-age businesses on the Indian economy, has stated that India's startup ecosystem has the capability to contribute 4 to 5 per cent to the gross domestic product (GDP) in the next 3 to 5 years.

"Indian startups have stepped onto the global stage. The rapid growth phase and maturity of the ecosystem have unlocked tremendous appetite for scalability, alternate funding options, expansion into the global market and the capacity to enable millions of jobs. This meteoric rise of startups has made India the third largest startup ecosystem in the world and has significantly impacted the Indian economy showcasing the ability to contribute approximately 4-5 per cent to the GDP of India. This report is an endeavour to highlight the impact made by startups on the Indian economy; the latent opportunities; and also the ecosystem's inherent ability to foster inclusivity, sustainability and growth," said Ishpreet Singh Gandhi, founder, StrideOne

The report has utilised thematic analysis, case studies and surveys to highlight the contribution, influence, and outcome of the advent of startups on the Indian economy. It is stated that the past five years have transitioned the startup ecosystem in India from an early-stage ecosystem to the current rapid growth phase and the matured ecosystem is now beginning to realise the global scale of growth. The Indian economy is already witnessing the impact of inclusive and sustainable growth offered by a robust startup ecosystem.

According to StrideOne, more than 28 per cent of micro, small and medium enterprises (MSMEs) in the textile industry in India rely on startup platforms to source business opportunities, registering a 29 per cent uptick in their revenues after joining such platforms in 2022. Charting the gig economy's contribution, it noted that gig workers already comprise more than 70 per cent of the employee base for fast commerce startups in 2022.

"The digitisation journey has brought the Indian market to a stage where startup-aligned value chains have created a widespread impact across sectors, geographies and communities. It is an opportune time to self-examine and leverage this success to realize the growth potential and build a sustainable ecosystem which promotes inclusivity," said Abhinav Suri, co-founder of StrideOne.

Founded by Ishpreet Gandhi and Abhinav Suri, StrideOne is an NBFC licensed by the Reserve Bank of India, with a mission to constantly push the barriers and set new industry standards thereby becoming a truly inclusive financial institution.