Emerging technology-led sectors, including technology, media and telecom (TMT), artificial intelligence and manufacturing, are projected to grow slightly faster at around 26 per cent annually
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India’s new-age economy is expected to nearly triple to around $300 billion in revenue by FY31 from about $100 billion in FY26, approaching the scale of India’s IT services sector, according to a report by Redseer Strategy Consultants.New-age economy companies are digitally native businesses or companies that use technology as a core part of their business model, unlike traditional businesses where digital is primarily a secondary channel, the report said.Growth shiftThe sector is expected to grow at around 25 per cent annually between FY26 and FY31, compared with 32 per cent annual growth between FY22 and FY26. Emerging technology-led sectors, including technology, media and telecom (TMT), artificial intelligence and manufacturing, are projected to grow slightly faster at around 26 per cent annually, increasing their share of the new-age economy from about 31-33 per cent.Consumption-led sectors, such as consumer goods, retail and leisure, are expected to remain the anchor, growing at around 25 per cent annually to reach about $150 billion by FY31.Profit swingThe report also highlights a sharp improvement in profitability. Combined EBITDA of new-age companies swung from a $4.8 billion loss in FY23 to a $1.4 billion profit in FY25, a nearly $6 billion improvement over three years.However, the profitability remains concentrated in banking, financial services and insurance (BFSI), which accounted for around 140 per cent of the overall FY25 profit pool. Excluding BFSI, all other sectors combined remained loss-making.Despite the projected revenue expansion, Redseer estimates that the new-age economy could generate only $5-10 billion in profit by FY31, translating to a margin of 2-3 per cent. This compares with margins of 12-18 per cent for listed FMCG companies and 20-25 per cent for IT services, indicating that scale alone may not lead to proportionate profitability.”Published on September 10, 2026
