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India’s New-Age Economy Poised to Reach $300 Billion
India’s new-age economy includes businesses built around technology, artificial intelligence, knowledge, and digital ideas.
A Redseer report says these businesses could make $300 billion each year by FY31.
They may grow from $33 billion in FY22 to about $100 billion in FY26.
Consumer goods, retail, and leisure are expected to make up nearly half of that total.
Technology, media, telecom, artificial intelligence, and advanced manufacturing are also expected to grow quickly.
The group of companies became profitable overall in FY25, but most profits came from BFSI.
The report estimates total profits could reach $5 billion to $10 billion by FY31.
Online stores and quick-commerce services are helping consumer brands grow faster.
However, reaching very large scale still requires strong offline distribution, modern-trade capabilities, and working capital.
India’s new-age economy is projected to grow from $33 billion in FY22 to $300 billion by FY31.
Revenue is expected to reach about $100 billion in FY26 before expanding at roughly 25% annually.
Consumer goods, retail, and leisure could generate $150 billion by FY31, nearly half the total.
The collective profit pool turned positive at $1.4 billion in FY25, but profitability remains concentrated in BFSI.
D2C and quick-commerce growth have shortened the time consumer brands need to reach major revenue milestones.
- Who
- India’s domestic new-age companies, as analyzed by Redseer Strategy Consultants.
- What
- The new-age economy is projected to triple to $300 billion in revenue by FY31, with profits potentially reaching $5 billion to $10 billion.
- Where
- India.
- When
- The projections cover FY26 to FY31; the report also cites performance in FY22 and FY25.
- Why
- Growth is expected to be driven by AI, knowledge capital, digital innovation, consumption-led sectors, D2C channels, and quick commerce.
Key facts
- FY22 revenue
- $33 billion
- FY26 projected revenue
- About $100 billion
- FY31 projected revenue
- $300 billion
- FY31 consumption-led revenue
- $150 billion from consumer goods, retail, and leisure
- FY25 profit pool
- $1.4 billion
- FY31 projected profit pool
- $5 billion to $10 billion, equivalent to a 2% to 3% margin
- Consumer brands above Rs 100 crore
- Projected to rise from about 230 in FY26 to approximately 500 by FY31
Quotes
Redseer Strategy Consultants report
Consulting report assessing profitability across India’s new-age economy
“BFSI alone is 140 per cent of the FY25 pool; take it out and every other sector put together is still loss-making”
thehansindia.com
Sources
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