Reimagining the startup ecosystem

The government’s pivot acknowledges a world where technology leadership is inseparable from national security, economic dominance, and strategic autonomy

The government’s flagship entrepreneurial support scheme, Startup India, marks its tenth anniversary on Friday. From 400 startups in 2016 to over 200,000 today, the mission has contributed to there being today 2.1 million jobs and 120 unicorns. Valued at over $350 billion, these account for what is the world’s third-largest startup ecosystem. This week, the government is expected to unveil the next iteration of the programme that puts future technologies front and centre. Such a pivot could not come sooner. India’s startup success is dominated by consumer-facing services — food delivery, e-commerce, fintech — where India’s scale and demand are a big advantage. It is what has driven models such as Zomato, Ola and PhonePe to success. But it also represents a stagnation: Indian entrepreneurs may have cracked the code of adapting existing tech to the country’s massive domestic market, but few have forayed into foundational future technologies. From super-efficient batteries to cutting-edge AI models, today’s most innovative and successful tech startups come from Silicon Valley or Shenzhen.

From super-efficient batteries to cutting-edge AI models, today’s most innovative and successful tech startups come from Silicon Valley or Shenzhen (Reuters)

The government’s pivot acknowledges a world where technology leadership is inseparable from national security, economic dominance, and strategic autonomy. Global semiconductor supply chains are being redrawn along geopolitical lines. AI development is concentrated in the US, whose sanctions can switch off essential services that many across the world have come to depend on. Defence, space, and quantum computing are no longer purely commercial pursuits but elements of national power.

India cannot remain merely a consumer of these technologies if it aspires to shape the coming decades. The shift toward deep tech and AI — with its emphasis on corporate engagement — could offer a practical pathway. The government has taken a crucial enabling step; India’s entrepreneurs must now step up.