India can have a million startups by 2035, mostly from non-metros, says Nandan Nilekani

Nandan Nilekani

Infosys co-founder and Aadhaar architect Nandan Nilekani believes that India will have 1 million startups by 2035, with most emerging from beyond the traditional metropolitan centres.

India has 150,000 startups but Nilekani expects the number to grow at a remarkable 20 percent annual rate over the next decade, outpacing the country's overall economic growth

"We don’t know what it means if a million companies are all roaming around trying to fix problems, … and interestingly, more and more startups are happening outside the metros, and they are solving different issues," he said recently at the Arkam Annual Meet 2025.

Citing government data, he said nearly half of India’s startups are based in smaller towns and cities, solving region-specific challenges.

Apnamart, a DMart-like retail chain focused on smaller cities, is one example of this emerging trend, he added.

“The guy who made money, I happily added cheques for the guys who want to start companies. So the whole thing is a virtuous cycle of capital and entrepreneurship,” Nilekani said, suggesting eight ways to push India’s GDP growth to 8 percent from 6 percent and expand the economy to $8 trillion by 2035.

He favours going all-in on artificial intelligence (AI) adoption, land monetisation using tokenisation, funding startups and businesses outside metro cities, enabling 10 million MSMEs with better access to technology, markets and credit, formalisation of job market, simplifying regulations, decriminalising compliance requirements, and reducing bureaucratic friction to support businesses.

Key to the transformation is India's emerging workforce: the 3 million Gen Z individuals who are digital-native and AI-savvy, Nilekani, often called India’s CTO, said.

Also read: Nandan Nilekani outlines four unlocks that can take India's growth to 8% from 6%

Journey to $8 trillion economy

He also spelled out four key unlocks — technology, capital, entrepreneurship, and formalisation — that can push the Indian economy to $8 trillion by 2035.

India should go all-in on artificial intelligence (AI) adoption, ensuring its benefits reach a billion people. For this, key focus areas are Indian language accessibility, MSMEs, agriculture, health, and education.

While AI has a broad range of applications, prioritising these sectors would have the most immediate impact in accelerating growth, he said.

Maximising AI penetration will unlock further economic potential, particularly in capital deployment, Nilekani added.

Reiterating his earlier stance on land monetisation using tokenisation and internet-based architecture, Nilekani said it would create momentum in capital markets and infrastructure financing.