India startups ecosystem could reach a point in the next 2 years where it contributes as much to the economy as some established industries, Finance Minister Nirmala Sitharaman said on Saturday. She also urged technology startups to look beyond early-stage funding and consider public listings as they expand.
Speaking at the IIT Madras Alumni Association’s Sangam 2026 in Bengaluru, Sitharaman said India’s startup ecosystem has changed significantly since 2015. She called for technologies developed by young companies to be adopted more widely across different sectors.
“The innovations which happen in startups will have to get into every sector,” she said, citing agriculture and drones as examples of technologies being adopted more broadly.
Sitharaman also rejected the idea that India has missed the artificial intelligence opportunity. She said the relatively small number of AI companies listed on stock exchanges should not be viewed as a measure of the country’s innovation. India already has AI companies that have reached unicorn status or are nearing it, she added.
Sitharaman said technology founders should not have to spend a significant amount of their time raising funds or managing administrative and managerial responsibilities. She said startups should have partners who can handle these functions and consider not only early and later-stage funding but also whether the company should eventually go public.
“Get yourselves listed also where you can,” she told the audience, adding that a cluster of listed AI companies could make India’s progress in the sector more visible globally.
On the shortage of patient capital for deeptech companies, Sitharaman sought specific proposals from the startup ecosystem. Responding to a question about hardware startups that may take years to generate revenue, she asked how early funding should be provided and how much capital would be needed.
“Tell us what is early. Tell us what is ‘enough,’ I’ll work for it,” she said, asking for the proposal within 10 days.
Sitharaman also highlighted India’s space sector as an example of the opportunities created by opening sectors to private participation. She said young companies are now designing satellites and taking part in space missions. She added that similar opportunities exist in defence, where there is scope for greater investment from both private and public capital.
Separately, Sitharaman said India needs more investment in AI infrastructure, including hardware, along with skills and training to help businesses adopt the technology. She said AI, semiconductors and quantum computing are among the areas that will require further infrastructure investment.
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