Indian Startups To Reach A Million By 2035, Predicts Infosys Co-Founder

In the bustling corridors of India’s entrepreneurial ecosystem, a silent revolution is underway—one that promises to reshape the country’s economic landscape. By 2035, India could be home to a staggering one million start-ups, a prediction made by none other than Infosys co-founder Nandan Nilekani. With unicorns returning home, IPOs booming, and a shift in investment dynamics, India is gearing up to become the world’s most preferred destination for public listings.

Speaking at the Arkam Annual Meet 2025 in Bengaluru, Nilekani outlined how technology, capital, entrepreneurship, and formalization will be the four key drivers pushing India towards an $8 trillion economy. But it is the start-up sector that stands out as the country’s biggest growth story. TICE presents the key take aways from his address.

From 1.5 Lakh to 10 Lakh: The Exponential Growth of Start-Ups

India currently boasts around 1,50,000 start-ups. But if Nilekani’s projections hold true, this number will explode at a compound annual growth rate (CAGR) of 20%, far outpacing the national economic growth rate of 8%. This means that in just over a decade, the number of start-ups in India will reach the magical one-million mark.

What’s even more fascinating is the ripple effect of IPOs. “Every time we have an IPO, there will be 100 more start-ups,” Nilekani remarked. This trend signals a deeper change within India’s financial and entrepreneurial ecosystem—one where success stories beget new ideas, innovation, and capital flow.

The ‘Ghar Waapsi’ of Indian Unicorns

A striking trend that Nilekani pointed out is the return of Indian-origin start-ups to domestic shores. Many companies that had initially incorporated in Singapore or the United States are now flipping back to India. The reason? A combination of policy changes, better market conditions, and a newfound confidence in India's economic stability.

This reverse migration, or ‘Ghar Waapsi’ as Nilekani termed it, is not just symbolic but also economically significant. These companies are now paying taxes in India, creating jobs, and strengthening the country’s financial markets by listing locally. India, which already has the highest number of IPOs globally (though still behind the U.S. in terms of value), is poised to become the world’s top IPO destination by 2035.

Start-Ups Beyond Metros: Innovation Finds New Homes

Historically, India’s start-up scene has been dominated by metros like Bengaluru, Delhi, and Mumbai. But an emerging trend is changing the game—start-ups are now thriving in smaller cities and towns, addressing diverse and localized problems.

From AgriTech ventures in Punjab to HealthTech solutions in Bihar, entrepreneurship is no longer confined to the traditional hubs. This democratization of innovation is bringing new opportunities to Tier-2 and Tier-3 cities, unlocking untapped potential, and ensuring that India’s economic rise is more inclusive than ever.

Land Tokenization: A $3.3 Trillion Opportunity?

One of the most fascinating insights Nilekani shared was about the untapped potential of land assets in India. Nearly 50% of Indian wealth is locked in land ownership, yet much of it remains non-tradable due to outdated systems and legal complexities.

Enter tokenization—the process of digitally representing land assets as tradable tokens. If implemented successfully, this could unlock $3.3 trillion worth of land capital. Tokenization would allow individuals to sell land or use it as collateral for loans more easily, revolutionizing real estate transactions in the country.

The Road to an $8 Trillion Economy: Key Takeaways

For India to achieve its ambitious economic goals, Nilekani emphasized the following focus areas:

• Leveraging Artificial Intelligence (AI) for the masses.

• Strengthening last-mile connectivity for consumers and MSMEs.

• Prioritizing investments in agriculture, healthcare, and education.

• Monetizing land assets through tokenization.

• Encouraging capital flow to start-ups beyond the eight major metros.

• Reducing bureaucratic hurdles to ensure ease of doing business.

India’s startup ecosystem is at an inflection point. With a robust mix of policy support, technological advancements, and entrepreneurial spirit, the country is well on its way to becoming a global leader in innovation. If Nilekani’s vision materializes, the next decade will not just see India as an economic powerhouse but as the undisputed nerve center of start-up success stories worldwide.