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India’s new-age economy is projected to nearly triple to around $300 billion in revenue by financial year 2030-31 (FY31) from about $100 billion in 2025-26 (FY26), bringing it close to the scale of the country’s IT services sector, according to a report by Redseer Strategy Consultants.
Driven by artificial intelligence (AI), knowledge capital and digital innovation, the new-age economy comprises digitally native businesses and companies that use technology as a core part of their business model, unlike traditional businesses where digital is primarily a secondary channel. The combined revenue of domestic new-age companies is estimated to have risen from $33 billion in FY22 to around $100 billion in FY26. Redseer expects the sector to grow at around 25 per cent annually between FY26 and FY31 to reach the $300-billion mark.
Consumption-led sectors remain the anchor
Consumption-led sectors, including consumer goods, retail and leisure, are expected to remain the cornerstone of growth, reaching about $150 billion by FY31 at an annual growth rate of around 25 per cent. That would account for nearly half of the new-age economy, although growth would moderate from 32 per cent annually between FY22 and FY26.
According to the report, the emerging technology-led sectors, including technology, media and telecom (TMT), AI and advanced manufacturing, are expected to grow slightly faster at around 26 per cent annually. Their share of the new-age economy is projected to rise from about 31-33 per cent. The collective profit pool of new-age companies turned positive in FY25 at $1.4 billion, according to the report. However, profitability remains heavily concentrated in banking, financial services and insurance (BFSI).
D2C, quick commerce speed up brand building
Consumer brands are reaching scale faster, helped by the expansion of direct-to-consumer (D2C) channels and quick commerce. The average time taken to reach ₹100 crore in revenue fell from 6.8 years for brands founded in 2016 to 3.4 years for the 2020 cohort.
The time required to reach ₹500 crore in revenue also halved, from 7.9 years to four years. Redseer expects the number of new-age consumer brands with revenue above ₹100 crore to rise from roughly 90 in FY22 and 230 in FY26 to around 500 by FY31.
Scaling beyond the ₹500-crore mark remains a challenge, however, owing to the need for deep offline distribution networks, modern trade capabilities and working capital infrastructure. Of the approximately 110 brands founded since 2016 that crossed ₹100 crore in revenue, only 26 have surpassed ₹500 crore, while eight have crossed ₹800 crore.
Private funding to rise
Private market funding for new-age companies is projected to increase 25 per cent year-on-year to $17 billion in calendar year 2026. Growth is expected to be driven mainly by investments in BFSI, TMT and AI, which together accounted for 60-65 per cent of deal value this year.
By calendar year 2030, total public and private fundraises for new-age companies are expected to reach $50 billion annually, comprising $35 billion in private funding and $15 billion through public listings. Redseer expects new-age companies to account for about 40 per cent of all Indian initial public offering proceeds by CY30, up from 25 per cent at present.
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