A Call for Balance: Time to Rethink How We Compare India’s Start-up Ecosystem with China’s
By Ravi Kumar
CEO, VIR Mobility Pvt Ltd
Pune, 3rd April 2025: In a recent conference attended by start-up stakeholders and honourable Minister Shri Piyush Goyal, comments made comparing the Indian start-up ecosystem with that of China have sparked a much-needed and healthy national discussion.
While many of the points raised by the Minister were valid in isolation, deeper analysis reveals that a direct comparison may not fully acknowledge the unique challenges and circumstances Indian entrepreneurs face.
India’s start-up growth, though rapid, is rooted in a very different socio-political and infrastructural landscape. Unlike China, where government-led incubation was backed by strict policy protections—such as banning global giants like Google to foster domestic innovation—India has taken a more open and globalised path. This approach, while democratic, has also left Indian companies vulnerable to foreign acquisitions. Ironically, several so-called “Indian” companies like MakeMyTrip, Oyo etc are now Chinese-owned, raising questions about the effectiveness of the current framework to truly protect and nurture indigenous innovation.
One sector specifically called out by the Minister was quick commerce. While it is fair to scrutinise the human rights and working conditions in such industries, it is equally important to recognize that these platforms are generating large-scale employment and redistributing wealth in a country where job creation remains one of the biggest challenges. Unlike China—where drone-based delivery is replacing human riders due to an aging population and high-tech investments—India’s demographic dividend still relies heavily on human engagement for last-mile delivery.
The larger question remains: are we truly enabling our entrepreneurs to compete globally in deep tech, AI, or biotech? Merely offering token support, such as ₹20 lakh under the Startup India scheme, is unlikely to lead to breakthroughs in advanced technologies. Building world-class tech products requires long-term political will, robust infrastructure, access to global talent, and, crucially, serious domestic investor interest.
Indian investors must now rise to the occasion. It’s time we stop treating deep-tech entrepreneurs as outliers and start placing real bets on them. And if we are to take pride in “Make in India,” we must also ensure that Indian companies remain truly Indian—not just in name, but in ownership and soul.
We urge policymakers, investors, and ecosystem stakeholders to introspect and collaborate—so India can build an ecosystem that’s not just reactive but resilient and ready for global leadership.
