Harnessing Domestic Capital: The Next Big Leap for India’s Startup Ecosystem
When Hon. Commerce & Industry Minister Shri Piyush Goyal recently urged India to “use domestic funds to build the next phase of our startup ecosystem,” it was not just a policy remark — it was a powerful statement of direction. It aligns perfectly with the vision of Atmanirbhar Bharat and Make in India , and recognises the reality that India has evolved from being a market for ideas to a creator of them. From the Capital of Ideas to the Capital of Startups India — and Bengaluru in particular — is now celebrated as one of the world’s most vibrant startup hubs. Unicorns are emerging faster than ever before, and several have successfully gone public. Yet, amid the celebration, there is a less-discussed reality: in most of these firms, promoter holdings have fallen to barely 10 per cent. The rest of the ownership is held by foreign venture capital and private equity investors. Two decades ago, this was acceptable — capital was the scarcest of the four factors of production. Toda...