India's Tech Leap: The Next Frontier of Market Capitalisation

Kunal Bahl, co-founder of Titan Capital and AceVector, forecasts significant growth in India's startup ecosystem, predicting new-age tech firms will contribute 8-10% of the nation's market cap within a decade. Bahl emphasizes India's potential amid formalization, digitization, and infrastructure expansion, despite funding challenges.

At the ET Now Global Business Summit, Kunal Bahl, co-founder of Titan Capital and AceVector, predicted a transformative era for India's startup scene. Bahl anticipates that within a decade, new-age technology companies will comprise 8-10% of India's total listed market capitalisation, a substantial leap from the current 2.5%.

Bahl highlighted India's parallels to the US, where 25% of the market capital comprises tech firms. He stressed the immense growth potential for Indian tech companies as the economy digitizes, suggesting that the market cap could expand to USD 15 trillion with tech companies accounting for over USD 1 trillion.

Bahl attributed this growth to key factors like consumption formalisation, financialization of small businesses, and infrastructure digitization. However, he cautioned against the existing capital scarcity and urged for more substantial investment, praising government schemes but underscoring the need for a mindset shift towards risk-taking.

(With inputs from agencies.)