NEW DELHI — India’s startup ecosystem should pivot away from a valuation-driven approach and focus on building long-term, sustainable businesses, according to a report released Tuesday by the Confederation of Indian Industry.
The report calls for a shift in both narrative and policy, emphasizing “value-scale” growth over headline valuations. It urges policymakers to improve access to growth capital, create proportionate regulatory frameworks, strengthen digital public infrastructure, and expand support for research and development.
The industry body said startups—especially those in capital-intensive and deep-tech sectors—need access to patient and diversified funding to successfully scale their operations.
It also stressed the importance of predictable, innovation-friendly regulations that reduce compliance burdens while still ensuring responsible growth.
“India’s startup ecosystem is at an inflection point, and the next phase of growth must be anchored in building enterprises that are sustainable, resilient, and globally competitive,” said Chandrajit Banerjee, Director General of the Confederation of Indian Industry.
India is currently the world’s third-largest startup ecosystem, with more than 120 unicorns, a combined valuation exceeding $390 billion, and total funding of more than $118 billion.
The report notes that the ecosystem has evolved into a more mature phase, marked by a transition from valuation-led expansion to innovation-driven development. This shift places greater emphasis on sustainable unit economics, operational discipline, and long-term competitiveness on a global scale.
It added that lasting value creation depends not just on high valuations, but on innovation, strong execution, and responsible scaling.
While early-stage funding has improved significantly in recent years, the report highlights the need to strengthen capital availability for growth and late-stage companies, particularly in sectors that require sustained, long-term investment. (Source: IANS)
