India’s innovation ecosystem is poised for exponential growth, thanks to strong government regulations, greater venture capital, and a diverse talent pool, industry experts said on Saturday.

Over the next three to five years, the country is expected to produce at least 152 unicorns (companies valued at $1 billion or more). The number of unicorns in the country has grown from four in 2015 to more than 100 by 2024, with over 1.25 lakh businesses.

Prime Minister Narendra Modi has emphasized the government’s commitment to creating a suitable environment for entrepreneurs to thrive, particularly in tier 2 and 3 cities.

“To cultivate more unicorns, India must prioritise substantial investments in research and development, enhancing digital infrastructure, and fostering a startup-friendly regulatory environment,” said Jitendra Patil, Managing Director of Pune-based energy-tech startup ARENQ.

Furthermore, reducing bureaucratic processes and offering tax breaks might boost entrepreneurial companies.

“The future is bright for Indian startups, and with the right support, we can unlock unprecedented opportunities and create a thriving ecosystem for unicorns to flourish,” Patil told reporters.

Every state will eventually have numerous companies and unicorns with incredible business models and innovation.

Ritesh Malik, founder of Innov8 and a serial investor, believes that India’s ecosystem, ease of doing business, Startup India, and Make in India missions would continue to boost the country’s economy over the next five years.

“India will continue its strong and resilient growth because of renewed capex, a well-capitalized banking system, robust credit growth, and digital-driven productivity gains,” said Dr. Manoranjan Sharma, Chief Economist of Infomerics Ratings.