Indian economy showed a strong performance in the previous quarter with a growth of 8.4 per cent. However, while citing government sources, Tracxn in its latest report has said that this number is expected to decline to 5.9 per cent in Q1FY2024.
According to the International Monetary Fund (IMF) report, India is expected to become the third-largest economy in the world by 2027 with a gross domestic product (GDP) of over USD 5 trillion. It added that with a large consumer base comprising the world’s largest young population and rising urban incomes, India is set to see good growth in the coming years.
The report stated that Q1FY24 has witnessed a total of USD 551 million in funding to date, a growth of 59 per cent as compared to USD 346 million raised in Q4 2023 and a drop of 57 per cent compared to the USD 1.3 billion funding raised in the Q1FY23.
“The government of India has always been focused on promoting the tech ecosystem in the country. Since the announcement of the Startup India Initiative in 2016, multiple schemes and initiatives have been introduced to boost the growth of India’s startup ecosystem,” the report stated.
Notably, around USD 12 billion was allocated in the interim budget for 2024 for providing interest-free loans for 50 years to promote research and development (R&D) in the private sector in the country which can potentially give a significant boost to the Indian fintech ecosystem.
