Dear Hon. Piyush Goyal,
Your recent observation that 80% of startups in India lack a core technical foundation is a critical wake-up call for our entrepreneurial ecosystem. It begs the question: who, or what, is responsible for this gap? The blame cannot fall on startup founders. They are doing their utmost with the technical know-how, market realities, and funding opportunities available to them. To understand this better, we must step back, examine the historical roots of Indian startups, and draw lessons from both our past and the advanced economies we often emulate.
A Historical Perspective: Startups Born from Public Sector Roots
Let’s broaden our lens on “startups” for a moment, setting aside the modern fixation on rapid scalability and focusing instead on technical innovation. Over the last 75 years, some of India’s most successful startups have emerged as offshoots of public sector enterprises. Dr. Reddy’s Laboratories, founded by Dr. K. Anji Reddy after his tenure at Indian Drugs and Pharmaceuticals Limited (IDPL), is a shining example. Many such ventures followed a similar path: employees honed their skills in PSUs, identified opportunities, and launched their own companies. These public sector giants served as “mother organizations,” providing technical expertise, stability, and a launchpad for entrepreneurial ideas.
The Shift: Inspiration from Advanced Economies
Today, the landscape has shifted. PSUs no longer dominate as startup incubators. Instead, Indian entrepreneurs look to advanced economies for inspiration. Ola, modeled after Uber, exemplifies this trend. While this approach has produced unicorns and elevated India’s global startup stature, it also explains the lack of “core technical” depth you’ve highlighted. Many of these ventures excel in execution but fall short on original innovation. So, if we’re borrowing from advanced economies, where do their startups originate?
The University Connection: A Global Benchmark
In nations like the United States, Germany, and Israel, universities are the answer. Stanford birthed Google and Cisco; MIT has fueled countless tech giants; the Technion in Israel drives a startup ecosystem that rivals global leaders. These institutions don’t just educate—they cultivate environments where research, collaboration, and entrepreneurial vision thrive. Faculty often lead the charge, either as founders or mentors guiding students toward transformative ventures.
Contrast this with India. Our universities and technological institutions, despite their immense potential, rarely serve as startup incubators. Yet, it’s not for lack of capability. Indian professors are as talented and innovative as their counterparts abroad. Consider Dr. Ashok Jhunjhunwala of IIT Madras, whose work in telecommunications has spawned multiple tech ventures, or Dr. V. Ramgopal Rao, former director of IIT Delhi, whose research in nanotechnology has global recognition. These examples prove that our academics are on par with those at Stanford or MIT—they simply lack the ecosystem to translate their brilliance into startups.
The Missing Link: Faculty as Founders
Dear Sir, the key to unlocking a surge in high-tech startups lies in empowering our university faculty to become founders. Indian professors bring unparalleled strengths: cutting-edge research, technical expertise, and the ability to mentor students who can join their ventures. Yet, they are shackled by bureaucratic red tape, a lack of incentives, and a system that prioritizes publications over practical impact.
This move would do more than just tap into established talent at premier institutes like the IITs or IISc. It would also inspire creative professors and young associate professors at lesser-funded universities—those often overlooked in the startup narrative. Many of these academics, brimming with ideas, hesitate to take entrepreneurial risks because they cannot afford to lose their stable jobs. By allowing them to retain their positions while exploring startup ventures, we remove that fear. A young associate professor at a regional university, for instance, could develop a low-cost renewable energy solution without sacrificing financial security. This dual role—academic and entrepreneur—would unleash a wave of innovation from unexpected corners of India.
A Policy Blueprint
Imagine IITs, NITs, and state universities becoming hubs of technical startups, where a professor’s breakthrough in AI or biotechnology becomes a company, not just a paper. This isn’t wishful thinking—it’s a proven model elsewhere, and our professors are equally capable of driving it. To make it happen, we need bold policy steps:
- Incentives: Provide grants, equity stakes, or sabbaticals for faculty launching startups.
- Infrastructure: Establish campus incubators with labs, funding, and industry connections.
- Flexibility: Relax rules so faculty can pursue commercial ventures alongside their academic roles, ensuring they don’t have to choose between a paycheck and their passion.
- NIRF-Linked Rewards: To promote this initiative, the government can incentivize colleges with high NIRF rankings that support startups where faculty hold major or equal shareholder stakes. These startups should align with the professor’s educational qualifications and specialization—ensuring, for example, that a mechanical engineering professor drives an advanced manufacturing venture, or a biotech expert leads a healthcare innovation. This would boost institutional prestige while channeling academic expertise into high-impact startups.
- Liberal Policy Incentives: Additionally, colleges that adopt liberal policies toward faculty startups—allowing flexibility in workload, intellectual property ownership, or entrepreneurial pursuits—should be rewarded. Such incentives could include extra funding, tax breaks, or recognition in national rankings, encouraging a cultural shift across institutions, not just the top-tier ones.
- Collaboration: Foster partnerships between universities, PSUs, and private firms to scale faculty-led innovations.
A Call to Action
India’s startup ecosystem has made remarkable strides, but as you’ve noted, it lacks the technical depth to lead in frontier industries. Founders aren’t the problem—they’re shaped by their environment. Historically, PSUs nurtured our startups; today, universities must step up. Our professors match the caliber of those in advanced economies—think of Dr. Jhunjhunwala or Dr. Rao—and with the right support, they can transform India’s entrepreneurial landscape. By encouraging faculty-led startups, we empower not just the elite but also the creative minds at underfunded institutions, ensuring inclusivity and innovation go hand in hand. Linking this to NIRF rankings adds a competitive edge, while rewarding liberal policies broadens the impact across diverse colleges.
Dear Hon. Piyush Goyal, this is a chance to redefine India’s future. Support faculty as founders, and our universities will become the mother organizations of tomorrow’s high-tech giants.
