News Update

Startups can raise 4-5% of India’s GDP over 3-5 years: Study says

• ByStartupStory     |    December 16, 2022

Startups are expected to accelerate 4-5% to India’s gross domestic product (GDP) over the next five years, up from 2.5-3% currently, according to a report by StrideOne.

StrideOne is a tech-enabled Non-Banking Financial Company that offers credit to startups and these findings are a part of the company’s The Startup Economy Report 2022. Till November 2022, 84,012 startups registered in India and it was 452 in 2016. Currently the Indian startup ecosystem is already the third-largest globally, with 77,000 registered startups with a combined valuation of over $400 billion. Revealed by government reports. 

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

Ishpreet Singh Gandhi, co-founder, StrideOne, said: “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.”

The Indian startup ecosystem has cumulatively created around 10 lakh jobs. In 2022 alone, they created 2.30 lakh jobs compared to 1.92 lakh in 2021. Over 28% of business by the MSMEs was created by startup platforms and  43% of the industry stakeholders from the textile industry said that the easy access to formal credit products was the main reason for joining a startup platform. 25% workers from the gig economy and 62% of drivers and fleet owners from the logistics segment have found an increase of about 50% in their monthly income and mode of livelihood after joining the startup platform. “Startups are limiting their hiring of permanent employees. Gig workers have begun to replace these permanent employees. The total number of enterprises who have shifted to a semi-gig workforce model has increased by 15% since Oct 2021,” the reports said.

 

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