Government Should Be First Customer of Startups, Says Amitabh Kant

New Delhi: At the ongoing Startup Mahakumbh 2025 held at Bharat Mandapam, G20 Sherpa Amitabh Kant emphasized the need for India to focus more on deeptech innovation. He said that for startups to grow in future-forward sectors like AI, blockchain, space tech, and machine learning, the government must play a stronger role—not just in funding them, but in actually buying their solutions.

“The government must be the first buyer when startups bring new and disruptive ideas to the market,” said Kant. He pointed to Government e-Marketplace (GeM) as a good example of how the government can support homegrown innovations.

Kant also spoke about how deeptech startups need patient capital—which means investors and policymakers must understand that these technologies often take more time to develop and succeed. He warned that due to global issues like supply chain disruptions and rising tariffs in the US, venture capital funding may slow down, so India must build a strong support system at home.

Looking back at the growth of the Indian startup ecosystem, Kant highlighted that the Startup India policy helped startups by keeping them out of rigid labour laws and the Factories Act, making it easier and less risky to start new ventures.

He also credited the government’s Fund of Funds for Startups (FFS) for sharing risks with venture capitalists and encouraging early-stage investment. Because of this support and policy reforms in sectors like space, drones, and geospatial mapping, India is now seeing more innovation and global competitiveness in these areas.

“Thanks to smart policy changes and India’s cost advantage, startups are now entering these high-potential tech sectors,” Kant said.

The event, organized by DPIIT, was called a “Sangam of startup and industry MahaRathis” by Joint Secretary Sanjiv, as it brought together innovators, industry experts, and investors from across India and beyond.

Startup Mahakumbh 2025 continues to be a big platform for bold ideas and collaborations—especially in future-focused tech areas where India has the potential to lead.

Disclaimer: This summary is for informational purposes and readers should verify specific details through official reports or consult industry professionals for comprehensive insights.