India Poised to Reach One Million Startups by 2035: Nandan Nilekani
13-March-2025 Bengaluru: India is on the path to becoming a global startup hub, with one million startups expected to emerge by 2035, according to Infosys co-founder Nandan Nilekani. Speaking at the Arkam Ventures Annual Meet 2025, Nilekani provided insights into India’s thriving entrepreneurial ecosystem and outlined a roadmap to sustained economic growth and innovation.
India’s Startup Boom: The Numbers Speak
Currently, India is home to 150,000 startups, growing at a compound annual growth rate (CAGR) of 20%. This rapid expansion has already resulted in 100 unicorns—startups valued at over $1 billion—out of 2,000 funded ventures. These figures underscore the country’s emergence as a major player in the global startup landscape.
Nilekani emphasized that India’s startup culture has been driven by technological advancements, government initiatives, and increasing venture capital investment. The growing digital economy, driven by initiatives such as Digital India, Startup India, and Make in India, has provided the foundation for sustained growth.
Roadmap to an $8 Trillion Economy
During his keynote speech, Nilekani laid out a strategic vision for India to achieve an 8% annual GDP growth rate, enabling the country to become an $8 trillion economy by 2035. While acknowledging the current 6% growth rate as impressive, he stressed the need for focused economic policies and structural reforms to accelerate progress.
“India’s potential as a startup nation is immense, but to sustain this momentum, we need to ensure an inclusive, innovation-driven ecosystem that fosters entrepreneurship at all levels,” Nilekani said.
He highlighted key challenges and opportunities, noting that while the startup ecosystem is flourishing in urban centers like Bengaluru, Delhi, and Mumbai, there is untapped potential in smaller cities and rural areas. Bridging the digital divide and expanding access to capital, infrastructure, and mentorship will be crucial in sustaining long-term growth.
The Role of Venture Capital and Policy Support
The surge in startups has been accompanied by an increase in venture capital investment, with global and domestic investors recognizing India as a high-growth market. However, Nilekani stressed that strong government policies and regulatory support will play a pivotal role in scaling startups into global businesses.
He called for simplified regulatory processes, enhanced access to credit, and increased investment in R&D and digital infrastructure. Additionally, fostering public-private partnerships will be essential in ensuring that startups gain the necessary resources to scale effectively.
Unlocking India’s Wealth: The Land Factor
Nilekani also drew attention to India’s land resources, noting that 50% of the nation’s wealth is tied up in land assets. He emphasized that unlocking the potential of land through better land-use policies, digitization of records, and infrastructure development could provide a significant economic boost.
“Land is one of India’s most underutilized assets. Streamlining land policies and improving transparency can unlock massive economic opportunities for startups, especially in sectors like agritech, real estate, and manufacturing,” he explained.
The Future of India’s Startup Ecosystem
Looking ahead, Nilekani expressed optimism about India’s trajectory as a leading startup ecosystem, driven by youth-led innovation, digital transformation, and government support. He emphasized the importance of deep-tech, AI, fintech, and green technologies in shaping the next wave of startup success stories.
“The next decade will be critical for India’s growth story. If we nurture innovation, create a strong talent pipeline, and provide the right economic incentives, we will witness an era of unprecedented startup-led growth,” he concluded.
With ambitious growth projections and a vibrant entrepreneurial spirit, India’s journey toward becoming a one-million-startup nation by 2035 seems well within reach.
