How Indian startups are contributing to India's $5 trillion economy goal? Explained
Startup India scheme. In 2022, Indian startups attracted a whopping $42 billion in funding, a substantial leap from the previous year's $16 billion which underscores their pivotal role in India's aspiration to achieve a $5 trillion economy goal. However, India's tech space has seen a huge decline in funding this year.
Despite this, India remains one of the top-performing tech ecosystems globally. Today, startups are catering to every need of consumers, that is, from B2B to B2C. Several sectors that shine in India include fintech, e-commerce, SaaS, D2C, Autotech, and others as these areas have consistently topped the investment charts, constituting a staggering 89% of total funding in H1 CY23.
The government’s roadmap to making India a $5 trillion economy comprises measures like focusing on inclusive growth, promoting a digital economy, fintech, technology-enabled development, energy transition, and climate action, and relying on a virtuous cycle of investment and growth. Prime Minister Narendra Modi has recently also said, “India is the fastest-growing major economy in the world despite turbulence in the global economic situation. India will soon become a $5 trillion economy." Amidst the pool of 92,683 startups recognized by DPIIT, here are a few sectors that contributed to a massive boost in the Indian economy and further hold the potential to drive a $5 trillion economy by 2024: 1) Electronic Vehicles (EV): Startups are helping the EV space to create a sustainable ecosystem in collaboration with the government to further boost the transition, said Vaibhav Kaushik CEO and Founder of Nawgati.
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