India’s artificial intelligence (AI) and software as a service (SaaS) start-ups are well-positioned to create more than $500 billion of market value by 2030, according to a report by venture capital firm Stellaris and World Bank-backed International Finance Corporation (IFC).
From a talent perspective, India’s AI and SaaS opportunity could create around 4.5 million jobs – more than 900,000 white collar jobs and 3.6 million new indirect jobs, according to the report.
“We believe India could potentially generate a market value of $500 billion from both AI applications and services by 2030, driven by the country’s thriving startup ecosystem, experience of building successful SaaS companies, and world-class data and analytics talent,” said Alok Goyal, Partner, Stellaris Venture Partners.
In 2021 alone, $4.5 billion was invested in SaaS startups in India, an increase of 170 per cent from 2020, according to Bain & Company. India has a large talent base of developers and strong process expertise, along with a fast-growing pool of niche talent such as designers and data scientists in addition to the availability of unique data sets and sophisticated algorithms, said the report.
Moreover, the overall ecosystem for early-stage companies is backed by adequate high-risk capital, with individual and institutional investors who are focusing on software investments and industry-specific accelerators that are willing to support these companies in their early stages.
“In India, there are several inflection points such as an abundance of data, storage capacity, and computing power, that are priming AI to drive the next wave of business transformation”, said Ruchira Shukla, Head, South Asia, Disruptive Technologies – Direct Equity and VC Funds of International Finance Corporation (IFC).
“Several critical sectors such as education, healthcare, agriculture, logistics, and financial services stand to gain tremendously from AI-led solutions, driving inclusion and economic development,” she added.
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