Indian Startups Can Contribute as much as Established Industries FM

Finance Minister Nirmala Sitharaman says Indian startups could match established industries in economic contribution, while urging wider technology adoption, public listings and greater deeptech investment.

Indian startups could contribute as much to the economy as some established industries in the next few years, Finance Minister Nirmala Sitharaman said at the IIT Madras Alumni Association’s Sangam 2026 event in Bengaluru.

Sitharaman said India’s startup ecosystem has changed significantly since 2015 and emphasised the need for technologies developed by young companies to find applications across multiple sectors. She cited agriculture and drones as examples of areas where startup-led technologies are being adopted beyond their original applications.

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The Finance Minister also encouraged technology startups to consider public-market listings as they grow. She said founders focused on developing technology should be supported by partners who can handle capital-raising, managerial and administrative responsibilities, allowing entrepreneurs to concentrate on their core innovations.

Sitharaman said the number of artificial intelligence companies listed on stock exchanges should not be treated as a measure of India’s AI capabilities. According to her, Indian AI companies have already reached unicorn status or are approaching that stage, while greater participation in public markets could make the country’s technology development more visible internationally.

Deeptech funding was another focus of the discussion. Responding to concerns over the availability of patient capital for hardware startups, Sitharaman sought specific recommendations from the startup ecosystem on the amount and timing of funding required during the early stages of development. She asked stakeholders to provide their proposals within 10 days.

The minister also pointed to the space sector as an example of opportunities created through greater private sector participation. Young Indian companies are increasingly involved in satellite design and space missions, she said. Defence was identified as another sector where both private and public capital could support the development of new technologies and businesses.

Sitharaman further highlighted the need for increased investment in infrastructure supporting emerging technologies. She said India requires greater capacity in AI infrastructure, including computing hardware, as well as skills and training to help businesses adopt AI-based technologies.

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She identified artificial intelligence, semiconductors and quantum computing among the areas where infrastructure investment would be required as India expands its technology capabilities.

The comments come as India's startup ecosystem continues to develop beyond traditional software and consumer internet businesses, with deeptech, space, defence and emerging technologies becoming increasingly important areas for private-sector participation.