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 FY31growing 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 leisureare 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 FY31accounting 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 FY25turning 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 billionequivalent 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 revenuecompared 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 CY30compared with around 25% currently.
Summary: India’s new-age economy could grow from around $100 billion in FY26 to $300 billion by FY31with 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.