India’s new-age economy is projected to nearly triple in revenue to around $300 billion by financial year 2030-31, driven by digitally native businesses, artificial intelligence, digital innovation and rapidly scaling consumer companies.
Revenue Could Triple by FY31
According to a report by Redseer Strategy Consultants, the combined revenue of India’s domestic new-age companies is expected to rise from around $100 billion in FY26 to $300 billion by FY31, growing at approximately 25% annually.
The sector generated just $33 billion in revenue in FY22, highlighting the rapid expansion of technology-driven businesses over the past few years.
Redseer defines new-age companies as digitally native businesses or companies where technology is central to the business model.
Consumer Businesses to Remain the Largest Segment
Consumption-led sectors, including consumer goods, retail and leisure, are expected to remain the biggest contributors to the new-age economy.
These segments are projected to grow at around 25% annually and reach approximately $150 billion by FY31, accounting for nearly half of the overall new-age economy.
Technology-led sectors such as technology, media and telecom, AI and advanced manufacturing are expected to grow slightly faster, at around 26% annually.
Profitability Is Improving
The expansion is increasingly being accompanied by better operating performance. The combined EBITDA of new-age companies swung by around $6 billion between FY23 and FY25, turning positive at $1.4 billion in FY25.
However, profitability remains highly concentrated in banking, financial services and insurance.
Redseer estimates that even if the new-age economy reaches $300 billion in revenue by FY31, its combined profit pool could be only $5 billion to $10 billion, equivalent to a 2-3% margin. That remains considerably below the margins of established FMCG and IT services companies.
Consumer Brands Are Scaling Faster
Direct-to-consumer platforms and quick commerce have significantly reduced the time required for emerging consumer brands to achieve scale.
Brands founded in 2020 took an average of 3.4 years to reach ₹100 crore in revenue, compared with 6.8 years for brands founded in 2016. The time required to reach ₹500 crore also fell from 7.9 years to four years.
Redseer expects the number of new-age consumer brands with more than ₹100 crore in revenue to increase from around 230 in FY26 to 500 by FY31.
However, crossing the ₹500-crore mark remains difficult because companies need stronger offline distribution, modern-trade capabilities and working-capital infrastructure.
Funding and IPOs Set to Expand
Private-market funding for new-age companies is projected to rise 25% year-on-year to $17 billion in 2026. By 2030, combined public and private fundraising could reach around $50 billion annually.
New-age companies could account for approximately 40% of all Indian IPO proceeds by CY30, compared with around 25% currently.
Summary: India’s new-age economy could grow from around $100 billion in FY26 to $300 billion by FY31, with consumer businesses, AI, TMT and advanced manufacturing driving expansion. Profitability is improving, consumer brands are reaching scale faster, and annual public and private funding could reach $50 billion by 2030. However, profitability and scaling beyond ₹500 crore remain major challenges.
