Title: E-commerce firms haven’t come up with help from govt: Mohandas Pai
The Indian startup ecosystem has been a topic of discussion in recent times, with various stakeholders offering their opinions on the growth and progress of the industry. The latest addition to this conversation is former Infosys CFO Mohandas Pai, who has expressed his concerns about the lack of support from the government to e-commerce companies in India.
Pai’s remarks come in the wake of Union Minister Piyush Goyal’s criticism of Indian startups for focusing on food delivery services rather than deep-tech. In an interview with a leading business publication, Pai said, “We have a large number of deep-tech startups, but they’re not getting enough money.” He also added that the e-commerce companies in India “have not come up with any help from the government” to support the growth and development of these startups.
Pai’s comments have sparked a debate about the role of the government in supporting the startup ecosystem in India. While some argue that the government has taken several initiatives to promote entrepreneurship and innovation, others believe that more needs to be done to provide a conducive environment for startups to flourish.
The Indian startup ecosystem has grown exponentially in recent years, with a large number of startups emerging in various sectors such as e-commerce, fintech, and healthcare. However, despite the growth, many startups in India face challenges such as lack of access to funding, regulatory hurdles, and competition from established players.
The issue of funding is a major concern for many startups in India. According to a report by the Indian Private Equity and Venture Capital Association, the number of venture capital deals in India decreased by 12% in 2020 compared to the previous year. This decline in funding has forced many startups to rethink their business models and seek alternative sources of funding.
Another challenge faced by startups in India is regulatory hurdles. The Indian government has introduced several regulations and policies aimed at promoting entrepreneurship and innovation, but many startups find these regulations to be overly complex and restrictive. For example, the Reserve Bank of India’s (RBI) guidelines on peer-to-peer lending have been criticized for being too restrictive, which has made it difficult for fintech startups to operate in the country.
The competition from established players is another major challenge faced by startups in India. Many established companies have entered the startup space, which has led to increased competition for resources and talent. For example, the e-commerce space has seen the entry of established players such as Reliance Jio and Amazon, which has made it difficult for startups to compete.
In this context, Pai’s remarks about the lack of support from the government to e-commerce companies in India are relevant. While the government has taken several initiatives to promote entrepreneurship and innovation, it is clear that more needs to be done to provide a conducive environment for startups to flourish.
One of the ways in which the government can support startups is by providing access to funding. The government can do this by introducing policies and programs aimed at increasing funding for startups, such as tax incentives for investors and subsidies for startups. Additionally, the government can also provide funding for startups through its own programs and initiatives, such as the Startup India initiative.
Another way in which the government can support startups is by simplifying regulatory hurdles. The government can do this by introducing policies and regulations that are more conducive to entrepreneurship and innovation, such as simplifying the process for registering a business and reducing the number of permissions required.
Finally, the government can also support startups by providing access to resources and talent. The government can do this by introducing programs and initiatives aimed at providing resources and talent to startups, such as incubators and accelerators.
In conclusion, Pai’s remarks about the lack of support from the government to e-commerce companies in India are relevant. While the government has taken several initiatives to promote entrepreneurship and innovation, it is clear that more needs to be done to provide a conducive environment for startups to flourish. By providing access to funding, simplifying regulatory hurdles, and providing access to resources and talent, the government can support the growth and development of startups in India.
