Business
India to be a $30 trillion economy by 2047: Secretary, DPIIT
Day-1 of the IVCA Conclave 2023 in Mumbai saw Shri Anurag Jain, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), address the PE-VC industry. His keynote address highlighted the immense impact and contribution of startups and the private capital market on nation building.
In his address, Jain focused on India’s resilience and rapid progress: “If we talk about where India would be in 2047, broadly, we would be a developed country. A realistic estimate shows that we would be a 30 trillion dollar economy by that time. In the optimistic scenario, we could be the second largest economy; we could even be more than that. But what is more important, we have to start taking our actions right now to align to that vision.”
He also attempted to allay fears regarding the looming funding winter: “We have to appreciate India viz a viz all other countries. Definitely, there was a fall in 2022 from 2021, but this fall is less pronounced than what was in China and the US. If we look at the data more closely, we find that in the Q1 of 2022, there were 64% more deals than in 2021. This means that had these global headwinds not happened, probably, 2022 could have been better. If you look at the long-term trend, take away 2021 as an outlier, even then 2022 is more than double of 2020 data.”
In 2022, Indian companies were able to attract over USD 50Bn of PE-VC investments, create 23 new unicorns with PE/VC investments contributing around 60% of all FDI investments. Moreover, last year marked ten years of the Indian AIF industry which has grown from strength to strength as providers of capital and expertise in new asset creation. India boasts an impressive 1057 AIF schemes as of date, which have commanded capital commitments of 88 billion (Rs 6.94 lakh crore) in its 10-year run. Global and domestic PE/VC funds showed immense trust in the Indian ecosystem investing around $290 billion since 2017.
Shri Anurag Jain is the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). Previously, as the Joint Secretary in the Ministry of Finance, he conceptualized and implemented one of the most successful initiatives ‘Pradhan Mantri Jan Dhan Yojana’, the largest financial inclusion programme in the world. As the Secretary to the Chief Minister of Madhya Pradesh, he was the prime mover behind the enactment of the Public Service Delivery Management Act, an innovative concept later adopted by more than a dozen states in the country. As Secretary, Information Technology, Government of Madhya Pradesh, he was instrumental in taking the state to the top ranks in the e-Readiness Assessment of States and Union Report.
Indian Venture and Alternate Capital Association (IVCA) is a not-for-profit, apex industry body promoting the alternate capital industry. With India having reached the milestone of 75 years of sovereignty, the ‘India Opportunity’ story is making waves globally. IVCA’s vision is to foster a vibrant investing ecosystem that resonates with the idea of Atmanirbhar Bharat (‘self-reliant India’).
As an organization, IVCA facilitates advocacy discussions with the Government of India, policymakers, and regulators to increase the level of entrepreneurial activity, innovation, and job creation in India and contribute toward the development of India as a leading fund management hub.
IVCA’s members include the most active domestic and global VCs; PEs; infrastructure, real estate, and credit funds; limited partners; investment companies; family offices; corporate VCs; and knowledge partners. These funds invest in emerging companies, venture growth, buyout, special situations, distressed assets, and credit and venture debt, among others. Therefore, the contribution and support of these asset classes will play a pivotal role in fueling India’s plan to become a USD 5 trillion economy by 2025 and enhance India’s status as an investable destination for global and domestic funds.
