Indian start-ups have attracted eyeballs after Union Minister Piyush Goyal made critical comment about the country’s new age businesses. Since then, they have become a topic of discussion across the globe. The recent remark was made by Counselage India Managing Partner Suhel Seth at the CII Annual Business Summit 2025. He said most Indian start-ups are merely imitating western business models and lack genuine innovation.
He argued that the Indian start-ups usually replicate business ideas already proven abroad, rather than developing original solutions tailored for India. "When I look around on the start-up ecosystem in India, I find almost all of that replica. And all of that is a copy of what has already been done in the West. A guy wants to start a vada-paw shop, he calls himself a startup," said Seth as quoted by PTI.
Seth further suggested criteria to define a true start-up. According to him, a new-age venture must represent a technological leap, be genuinely unique and non-replicable, and inspire pride among its creators.
“Very few Indian start-ups meet this criteria, with most focusing on copying existing models rather than pioneering new ones,” he said, while adding that the start-up conversation in India is overly fixed on valuations, unicorn status, and founder wealth.
He even questioned why India has not produced global tech giants comparable to Facebook or Google, despite the country’s vast talent pool and growing digital infrastructure. Seth attributed this gap to social pressures, risk aversion, and a lack of supportive ecosystems that encourage innovation and long-term commitment.
Piyush Goyal on Indian Start-ups
A few weeks ago, Goyal made fiery comments about about Indian start-ups at ‘Startup Mahakumbh 2025’ which created buzz across the entrepreneurial ecosystem. He drew a sharp comparison between Indian and Chinese businesses, while giving a wake-up call to entrepreneurs to change their perspective.
“Are we happy about being delivery girls and boys? Food delivery apps are turning unemployed youth into cheap labour so rich can get their meals without moving out of the house. Kids of billionaires are making fancy ice cream/cookies and calling it a start-up,” said Goyal while addressing the event on April 3.
He also expressed his disappointed over Indian start-ups being acquired by foreign players, emphasising that new ventures should focus on preparing the nation for the future. “When I come to know that a bright idea of a young start-up got sold to a foreign company for Rs 25 lakh or Rs 50 lakh, I feel sad about it,” the minister added.
