New Delhi, Mar 15 (KNN) Indian startups are poised to make a significant impact on the country’s GDP, potentially contributing USD 1 trillion by FY30 and generating more than 50 million direct and indirect jobs, according to a report released by the Confederation of Indian Industry (CII).

Key sectors such as retail, e-commerce, fintech, and SaaS (software-as-a-service) are expected to drive this growth, with a particular emphasis on digital commerce adoption in B2B retail.

The report highlights the role of initiatives like the Open Network for Digital Commerce (ONDC) in democratising commerce and bringing more Micro, Small, and Medium Enterprises (MSMEs) online.

Additionally, next-generation financial services could facilitate access to credit for around 200 million Indians, the report noted.

The increasing digitisation of the economy is paving the way for startups to expand their reach. By FY30, India could see a substantial increase in digitally transacting retail consumers, reaching an estimated 450-500 million.

Moreover, household penetration of digital payments is projected to reach 90-100 per cent. This digital transformation is also expected to boost digital adoption among small and medium enterprises, comprising 40 per cent of the total SaaS customer market.

The report suggests that Indian enterprises could increasingly embrace GenAI-based applications across various business processes, leading to a wave of innovation from B2B deep-tech startups.

The future growth of startups is further supported by the broad-basing of the investor ecosystem, which could potentially lead to the creation of 300 new unicorns. Currently, India ranks third in the world with 114 unicorns, following the US and China, with approximately 100,000 startups.

Estimates indicate that by FY30, startups could create 4-5 million direct jobs and 35-40 million indirect jobs, highlighting their significant contribution to India's employment landscape and economic growth.

(KNN Bureau)