India is poised so as to add almost $2 trillion in market capitalisation by way of know-how over the following decade, creating massive corporations, which can reshape the nation’s financial panorama, mentioned VC agency Accel on Wednesday.
“India goes so as to add $2 trillion of market cap utilizing know-how within the subsequent decade,” mentioned Accel Accomplice Prayank Swaroop whereas talking on the ongoing AI Impression Summit.
Expertise corporations presently account for under 4-5% of India’s total market capitalisation, nevertheless, he projected that this share may rise sharply to 15-20% within the subsequent 10 years.
“This implies there are going to be heaps and plenty of $100 billion corporations that may get created,” Swaroop mentioned, including that it might be a “huge leap”.
This is a chance that’s accessible for Indians in India, from India and for the world, the enterprise capitalist added.
Highlighting the position of synthetic intelligence (AI), Swaroop mentioned “what we’re seeing in AI right this moment could be very quick. However it will get even sooner within the subsequent few years”.
He mentioned the main target of startups and founders ought to be to “construct for Bharat” with cost-effective options.
He defined as how AI can “carry down the price of healthcare, the price of training for everybody and we’re beginning to put money into these companies”.
Accel has recognized some areas the place lots of worth may be created as use of Synthetic Intelligence (AI) goes to carry down the price of companies.
He mentioned AI has the potential to dramatically scale back the price of companies, notably in sectors resembling healthcare, training and monetary planning.
“Consider (companies at) Rs 100 per thirty days — you get a instructor, a physician, a monetary planner, a banker, and even somebody to speak to for psychological well being,” he mentioned, including, “There are lots of issues right this moment that are attainable with AI. Which individuals can create. That are wanted by India. And the client base in India is large.”
Based in 1983, Accel is a world enterprise capital agency headquartered in Palo Alto, California. It focuses on early and growth-stage investments in know-how sectors, together with cloud, SaaS, client, enterprise, fintech, safety, and AI.
Accel, which has backed a number of profitable Indian ventures, is actively investing in companies positioned to learn from these traits, he mentioned.
The agency believes that the convergence of AI, agent-based programs, robotics, and superior manufacturing will create new alternatives for entrepreneurs, driving innovation and worth creation within the nation’s know-how ecosystem.
“Giant language fashions (LLMs) might have dominated the know-how dialog final 12 months, however the focus is shortly shifting to agent-based programs and, quickly, to robotics,” he mentioned, including, “The curve of enchancment of this know-how goes to turn into even sooner.”
The enterprise capitalist highlighted that a number of corporations are scaling at outstanding velocity, with some reaching revenues of $100-200 million in lower than a 12 months.
He emphasised that the fast development shouldn’t be restricted to world markets alone.
Indian startups are additionally benefiting from robust investor curiosity and technological adoption, positioning themselves for world competitiveness.
“The great half for all of us right here is that there’s sufficient capital accessible in India if founders wish to construct companies with it,” Swaroop mentioned, underlining the supportive funding setting.
Its optimism round India’s technology-led market capitalisation development displays broader structural shifts within the economic system, together with fast digital adoption, growth of web penetration, development of digital public infrastructure, and a maturing startup ecosystem.
Over the previous decade, initiatives such because the Unified Funds Interface and Aadhaar-enabled companies have demonstrated how know-how platforms can scale to a whole bunch of hundreds of thousands of customers, creating new markets and formalising massive segments of the economic system.
India is presently the world’s third-largest startup ecosystem by variety of startups, with robust momentum in fintech, SaaS, deeptech and AI-led enterprises. Enterprise funding cycles have turn into extra disciplined after the 2021–22 peak, however dry powder with home and world funds stays substantial.
Accel’s projection aligns with expectations that AI, automation, robotics and superior manufacturing will drive productiveness good points throughout sectors, doubtlessly giving rise to a number of globally aggressive, $100-billion-scale corporations rooted in India however serving worldwide markets.
(With inputs from PTI)
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