Building from Bharat

If the 2010s were about discovering the potential of en­trepreneurship, the 2020s are about building depth. At the centre of this transformation is the MeitY Startup Hub (MSH), a national platform under the Ministry of Electronics and Information Technology that anchors India’s deep-tech ambitions. In an interview with Industrial Economist, Panneerselvam Madanagopal, CEO discusses how India is shifting from imitation to innovation.

Industrial Economist (IE) : What was the vision be­hind the MSH?
Panneerselvam Madanagopal (PM): The MeitY Start­up Hub was created to support electronics, electronic design, manufacturing and deep-tech startups. While several other organisations support product-based ventures, our focus is much sharper. We are the cus­todians of deep-tech startups in the country. Our goal is to provide three essentials that every startup needs: mentorship, market access and money.

Broadly, we are working on three key fronts. First, deep-tech development by supporting startups that are building advanced, design-led technologies. Sec­ond, broad-basing innovation by extending the startup ecosystem to tier-2 and tier-3 cities, so that entrepre­neurship becomes truly inclusive. And third, inclusive technology through vernacular tech, assistive tech for the elderly and empowering women in deep-tech.

IE: Could you elaborate on these inclusion-driven initiatives?
PM: Inclusion is at the heart of MSH. For vernacular and language technologies, we work closely with our sister organisation, Bhashini which supports startups building language-based models and AI tools. They gain access to Bhashini’s platform and resources while MSH provides mentoring, funding and market access. It’s a holistic support ecosystem.

For women in technology, we are working with accelera­tors across the country to fund and mentor women-led deep-tech startups. In the last year and a half alone, we have supported over 100 women founders. This is not just a diversity metric but a deliberate strategy to bring more women into innovation-driven entrepreneurship.

IE: How has India’s startup story evolved?
PM: Today, we have close to 200,000 startups across the country. That’s still a modest number for a nation of 1.4 billion people, but the width with a broad founda­tion of entrepreneurs and innovators has been created. Even culturally, things have shifted. Parents who once preferred stable jobs for their children now take pride in seeing them become job creators. We’re also witnessing a sharp rise in ideas translating into innovations, prototypes and products, which shows how much the ecosystem has matured.

However, now it’s time to go beyond width and focus on depth. That means building globally competi­tive, research-driven companies that can redefine their sectors. The government is fully aligned with this vision. Through initiatives like the India AI Mis­sion and the India Semiconductor Mission, we are investing and nurturing companies that can take India to the next frontier of innovation. I believe that within the next two to three years, we’ll see a critical mass of such compa­nies emerging, some of them even becoming global game-changers. Out of the 30–40 deep-tech start­ups we’re supporting today, I’m confident that several will rise to that level.

IE: What is the funding situation in the startup eco system?
PM: In fact, there’s plenty of money available. What has changed is the nature of investment. Around eight years ago, if you had a good presentation and the right connections, you could raise a million dollars without much effort. That’s not the case anymore. Today, in­vestors are far more rational and data-driven. Money follows traction and proven execution, not just ideas or founder profiles. Investors want to see a clear mar­ket fit and a track record before committing funds. So, while it may appear that funding has slowed, the real­ity is that capital is chasing quality. The opportunity lies in building strong, differentiated companies that can attract that money.

However, deep-tech and sunrise sectors come with long gestation periods, and that’s where private capi­tal often hesitates. Venture capitals typically operates on a two- to three-year return cycle, whereas deep-tech requires a five- to seven-year horizon. That’s exactly where government intervention becomes critical. Through initiatives like the India Semi­conductor Mission 2.0, the ANRF and the National Quantum Mission Fund, the government is stepping in to provide patient capital. These strategic funds are designed to invest in startups that need time and R&D support to build world-class technologies. Our goal is to stay invested long enough for these compa­nies to create real impact.

IE: Can you brief on the tier-2 and tier-3 cities focus.
PM: There is as much talent in Madurai or Ran­chi as there is in Bengaluru. They just need the right opportunities. Under GENESIS, we have set up over 65 incubators across the coun­try, supporting innovators with lab facilities, mentorship and funding. Our belief is simple: if you build great companies, investors will follow. You can’t bring investors to a city and expect value to appear. It has to start with strong, problem-solving startups.

Through our Emerging States Program, we are also helping state governments frame startup poli­cies that play to their unique strengths – whether it’s tourism and handicrafts in the Northeast, logistics in Jharkhand, or manufacturing in Tamil Nadu. Every re­gion should build around its natural advantages.

IE: What is the missing link in industry, academia and government collaboration? PM: It is one of India’s persistent challenges. It’s not that collaboration doesn’t exist; it’s that the priorities aren’t aligned. Industry focuses on survival and growth. Academia is oriented toward research and publications. Government looks at long-term nation-building. The key is to create a shared mission that aligns all three. But things have started to improve and we see are seeing positive outcomes like the IIT Madras Research Park.

IE: How has your transition from T-Hub in Telangana to this central position been like?
PM: At T-Hub, I learned the power of collaboration. We were not competing but rather co-creating. That mindset continues to guide me at MSH. At the national level, the challenge is scale. We are working with 29 states and 8 union territories, each at a different stage of ecosystem maturity. But it’s also deeply fulfilling to contribute to nation-building by shaping the innova­tion landscape for the next decade.

IE: Your views on Tamil Nadu’s startup ecosystem?
PM: Tamil Nadu is already one of India’s most vibrant and mature ecosystems. The focus on manufacturing and design gives it a solid foundation. I wouldd love to see more IP-led startups here, especially in component manufacturing and materials innovation. That’s where Tamil Nadu can truly lead, bridging traditional indus­try with the digital economy.

IE: Where do you see India’s startup ecosystem in the next five years?
PM: Five years from now, Indian entrepreneurs will not only deliver global solutions but they’ll do it cost-ef­fectively. And I always tell young founders this: Going forward, you have only two choices — either you’re an entrepreneur, or you work for one.That’s the spirit of this decade. Entrepreneurship is no longer just about startups — it’s about identity, inclusion, and nation-building.