Prateek Garg
Chair, CII Northern Region Startup Council and Founder & MD
Progressive Infotech (P) Limited
Progressive Infotech (P) Limited
From Scale to Stewardship: India’s Startup Ecosystem and the Case for Governance-Led Growth
India’s rise in the global startup landscape is no longer a hypothesis — it is a demonstrable reality. We are witnessing the evolution of an entrepreneurial ecosystem that is not only voluminous in scale but increasingly sophisticated in its intent. With over 100,000 startups and a burgeoning cohort of unicorns, India today stands as the world’s third-largest startup hub, and arguably the most pluralistic — both in geography and domain.
However, the significance of this ascent must not be measured solely in numbers or valuations. It must be assessed through the lens of long-term institutional robustness: the depth of governance frameworks, the clarity of ethical scaffolding, and the alignment with sustainability imperatives. These are not peripheral concerns — they are foundational to global competitiveness.
A startup’s ability to scale is no longer determined by capital alone. Increasingly, it is defined by how well the enterprise can navigate a world that is both opportunity-rich and accountability-intensive. Investors, customers, regulators, and talent — all demand greater transparency, social responsibility, and resilience. In this context, governance becomes a strategic enabler, not a compliance cost.
For Indian startups, this presents both a challenge and an advantage. A challenge because governance frameworks in early-stage companies are often underdeveloped. An advantage, because India has the opportunity to embed ethical rigor into innovation at the creation stage — not as a retrofit, but as a differentiator.
Sustainability, too, must graduate from being a thematic aspiration to a measurable outcome. India is uniquely positioned to lead in sustainable innovation — not in spite of our development context, but because of it. Whether in renewable energy, mobility, aggrotech, or circular logistics, our entrepreneurs are already demonstrating how frugality and environmental consciousness can coexist with ambition.
To harness this momentum, we need a three-fold pivot:
At the Confederation of Indian Industry (CII), we are particularly focused on regional and Tier 2-Tier 3 ecosystem development - where the next wave of disruptive startups will emerge. Inclusion is no longer a moral imperative; it is an economic one.
As we celebrate National Startup Day, let us recognize that this is not merely an occasion to applaud disruption. It is an inflection point. The choices we make today - on governance, sustainability, and inclusive growth - will define whether India’s startup surge becomes a sustained transformation.
In the decade to come, the most valuable Indian startups will not be those that grow the fastest - but those that build the deepest roots.
However, the significance of this ascent must not be measured solely in numbers or valuations. It must be assessed through the lens of long-term institutional robustness: the depth of governance frameworks, the clarity of ethical scaffolding, and the alignment with sustainability imperatives. These are not peripheral concerns — they are foundational to global competitiveness.
A startup’s ability to scale is no longer determined by capital alone. Increasingly, it is defined by how well the enterprise can navigate a world that is both opportunity-rich and accountability-intensive. Investors, customers, regulators, and talent — all demand greater transparency, social responsibility, and resilience. In this context, governance becomes a strategic enabler, not a compliance cost.
For Indian startups, this presents both a challenge and an advantage. A challenge because governance frameworks in early-stage companies are often underdeveloped. An advantage, because India has the opportunity to embed ethical rigor into innovation at the creation stage — not as a retrofit, but as a differentiator.
Sustainability, too, must graduate from being a thematic aspiration to a measurable outcome. India is uniquely positioned to lead in sustainable innovation — not in spite of our development context, but because of it. Whether in renewable energy, mobility, aggrotech, or circular logistics, our entrepreneurs are already demonstrating how frugality and environmental consciousness can coexist with ambition.
To harness this momentum, we need a three-fold pivot:
- First, a national commitment to green capital - both in the form of climate-aligned funding mechanisms and ESG-linked incentives for startups.
- Second, a governance architecture that is accessible, scalable, and tailored to startups - including digital audits, IP frameworks, and data privacy regimes.
- Third, a deeper corporate-startup-MSME handshake - where large enterprises actively co-create, procure, and mentor AI-and sustainability-focused ventures.
At the Confederation of Indian Industry (CII), we are particularly focused on regional and Tier 2-Tier 3 ecosystem development - where the next wave of disruptive startups will emerge. Inclusion is no longer a moral imperative; it is an economic one.
As we celebrate National Startup Day, let us recognize that this is not merely an occasion to applaud disruption. It is an inflection point. The choices we make today - on governance, sustainability, and inclusive growth - will define whether India’s startup surge becomes a sustained transformation.
In the decade to come, the most valuable Indian startups will not be those that grow the fastest - but those that build the deepest roots.
