India is on the brink of a dramatic startup expansion, with Infosys co-founder and Aadhaar architect Nandan Nilekani predicting that the country will be home to one million startups by 2035. Speaking at the Carnegie Global Tech Summit 2025, Nilekani highlighted a decade of foundational work, including Aadhaar, UPI, and Jio, as the driving force behind this ambitious forecast.

From just 2,000 startups in 2015 to over 150,000 today, Nilekani said India is entering a “complete shift” era—fueled by a virtuous cycle of innovation, reinvestment, and technological scalability.

From 2,000 to 1 Million: India’s Startup Surge

“In 2015, India had just around 2,000 startups. Today, we’ve reached approximately 150,000,” Nilekani stated. “By 2035, that number will rise to one million. It’s a complete shift, powered by a cycle of innovation, success, reinvestment, and scale.”

According to Nilekani, this growth isn’t happening by accident. He credited a decade-long investment in digital infrastructure—such as Aadhaar, UPI, and digital literacy campaigns—as key enablers. Startups are now creating downstream ventures, providing capital, mentorship, and inspiration to newer founders, especially in fields like climate tech, energy, and space.

Digital Infrastructure: The Foundation for the Future

The Infosys co-founder stressed that India’s digital transformation has been decades in the making. “This kind of transformation doesn’t happen overnight. It takes years of building the right foundations,” he said, referencing key milestones in 2016 like the Aadhaar database crossing a billion users, the rollout of UPI, the launch of Jio, and the BHIM app—all of which have democratised access to digital platforms.

With over 400 million UPI users and 600 million WhatsApp users, Nilekani believes the foundation is now set for exponential startup growth. “Now that we’ve laid the groundwork, we can move faster because we know the path forward,” he noted.

The Role of AI in India’s Startup Ecosystem

Nilekani also emphasized the evolving role of artificial intelligence (AI) in India’s startup ecosystem. While AI’s integration into enterprises is still at an early stage, he noted that India’s massive user base and improving digital literacy present a unique opportunity.

“The future lies in shifting from Hindi and English to all major Indian languages, moving from touchscreens to voice and video, and replacing static knowledge with dynamic, context-aware information,” he explained.

However, he also cautioned about significant public sector challenges. “Data is the lifeblood of AI, but it’s fragmented across ministries and departments. To truly realise AI’s potential in governance, we need integrated systems and a renewed emphasis on public trust.”

Rethinking Work and Productivity

On the question of how AI may reshape work and society, Nilekani discussed the philosophical rethink required in a world with shorter work weeks or early retirement. With AI potentially freeing up time, he urged a shift in how society values labor, purpose, and contribution.

“The conversation must move from whether we need to work to what we choose to do with our time,” he said.

What This Means for India’s Future

Nilekani’s forecast comes amid broader discussions about India’s economic trajectory. As the country eyes an $8 trillion economy in the coming decade, Nilekani believes technology-led entrepreneurship, powered by robust public digital infrastructure and AI, will be central to its growth.

With a clear roadmap and institutional readiness, India is poised to move from startup potential to startup powerhouse.